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A daily podcast delving into the biggest stories of the day throughout the sports betting and igaming sector.
Elisa Marcante (00:02.304)
So I feel I feel no, I I know we know that the government sees the the industry as something negative and but I don't think it's true. I mean, of course we need to protect the players and the vulner vulnerable groups, such as minors, but I believe the the important thing is now is to explain how the the regulated market works rather than just make people afraid of it. So
We need to go further than just restrictions and and warning messages. We need to tell them how the the market works, to explain what are the ri the risks, and also to tell them it's okay to play and to have some fun. So I think the message is because they see it's the industry has something negative, but we need to go further than that.
Leonardo Biazzi (00:59.72)
And
Fernando Noodt (00:59.88)
Yeah, absolutely. It always it's always up to education, right Leo.
Leonardo Biazzi (01:04.298)
Yeah, just to make things clear for those who are listening, the government has set three mandatory phrases and the operators need to pick one. It's Minus Ministry of Finance warns betting makes you lose money. Minister of Finance warns, betting can cause addiction. And the third one is Minister of Finance warns betting is not an investment. I think the govern the government are trying to protect
people who are perhaps poor poorer or people that don't have the information like Elisa was saying. I'm not totally against it by the way. It's just that see you're making these rules but the illegal market is still huge in Brazil and they don't follow any rules so but we'll talk more about that later.
Fernando Noodt (01:59.967)
Yeah, absolutely. Absolutely. But could these restrictions actually make live betting for example less attractive for operators? Like d they're not able to to promote it as much as before. could this turn into a a disadvantage for for for that particular segment?
Leonardo Biazzi (02:23.29)
I think so. We touch we touched on it in on the past episode. Like betting companies spent a lot of money on Kazetv to have their product feature, but if the betting advertising can be as strong, I would say, it makes less sense to to then to invest that kind of money. So yeah, I think things will definitely change and media will perhaps have to seek another forms of of funding, of investment to be able to
show these broadcasts to to make this broadcast for free, especially on Ca for Cassetta V, like it's for free on YouTube. Everybody can watch it as long as you have an internet connection
Fernando Noodt (03:03.774)
Right.
Elisa Marcante (03:04.189)
Yeah, yeah, and I agree with Liu. And also the these restrictions can drive players to the to the illegal market and as the the illegal market grows, the regulated market becomes weaker. So we have another problem there.
Fernando Noodt (03:19.672)
Yeah, absolutely. Absolutely. And we'll go deeper into that subject after the the break. But before the break, very briefly, Elisa, do you think this is the evolution of the regulatory framework in Brazil or is it just or just a reaction to controversies surrounding the work?
Elisa Marcante (03:37.616)
I would say it's more of a reaction. even though the the government already was already moving in this direction, I think it would have taken more time before introducing new advertising rules. We saw a lot of complaints during the World Cup because of betting advertising, as Liu said before, and I believe that encouraged I believe this encouraged the government to act more quickly.
Fernando Noodt (04:05.672)
Yeah, yeah, absolutely. Absolutely. we'll have to hashtag wait and see whether this type of regulation is indeed just a patch and new issues arise in the future. But right now we're gonna do a very quick ad break and we will continue discussing this whole matter right after this very short commercial break. We'll be right back. okay.
BREAK
Fernando Noodt (05:15.444)
And we're back with more eye gaming daily to continue discussing the new advertising rules in Brazil for the gaming industry following a bit of a controversy surrounding bets in the World Cup. But the ANJL has publicly supported these new rules while calling for a stronger enforcement against illegal operators, which we were
Elisa Marcante (05:15.721)
Mm-hmm.
Fernando Noodt (05:45.5)
sort of mentioning before the the break, is the regulated industry taking the right approach by citing the governmentalisa?
Elisa Marcante (05:55.446)
I I think I'm gonna pass to Liu this one. He was he was in in touch with the the association and I think he has more things to say than me.
Fernando Noodt (05:57.97)
Yeah.
Leonardo Biazzi (05:58.349)
Ha ha ha.
Leonardo Biazzi (06:07.722)
Okay, I think so fair. I think they're doing the right thing by doing this. they probably know, those who are investing in into betting that Brazil is a very new scenario for them. They know things are going to change because we've just made our regulation. That's that may be strange for some people. Like, why are Brazil making changes with if the regulation is so new? But I think we are evolving or
I don't know, it's it's just my opinion. I think we we are evolving our regulation as we go, seeing the mistakes. And they know that there were there were some some things. I'm sorry.
The regulator sector knew that some of the betting advertising was too much during the World Cup and they decided to follow along with the government. But I think it's their right, it's absolutely their right to press for more
combat against the illegal market because it's still huge in Brazil. But the good news is for them, they have been happy about Brazil in these past few weeks because the government is doing more against the illegal market. Like we had out out of my back I can remember of three big police or police operations in the past month. And not only that, the government is trying to suffocate the illegal market financially, like by making the financial institutes
Mm.
Elisa Marcante (07:42.294)
Yeah, I just we just need to be careful to to find the the right balance in restrictions and and the industry because as we said before, we just need to care be careful because of the illegal market, not to strain the illegal market. So I think we need to find this balance.
Leonardo Biazzi (08:01.754)
Yeah, it's especially in Brazil because like fifty percent of the volume is still belongs to the illegal market. So you you have to approach this carefully for sure. I agree with Elisa.
Fernando Noodt (08:14.216)
Yeah, you y you guys have clearly stated that you do, but this definitely could illegal operators could definitely thrive on these new rules, right? Because only regulated operators are the ones that are going to be forced to comply with the with the with the rules in in in order to avoid any any sanctions. meanwhile the illegal operators can do whatever they want.
as long as of course the government doesn't act accordingly and goes but of course it's always like a a a never ending race where the where the the authorities are are running behind what illegal operators are doing and trying to restrict their their advertising, their their platforms, blocking IPs and and and of course we all know that only works for a little time and because they always mask their their their their address and then through a different IP and whatever.
technology magic and they they of course continue to operate nonetheless so it's definitely gonna gonna be an issue for brazil to continue seeing how to to tackle the illegal operations but right now I wanna s shift from the federal advertising rules and right before we end this episode I didn't want to leave out these new restrictions that have been approved
in Rio de Janeiro and Belo Horizonte both have banned betting advertising in public spaces. So what restriction did they specifically enforce and could this become a nationwide trend with different jurisdictions enforcing bans on on gambling advertising very briefly do you want to to explain guys?
Leonardo Biazzi (10:04.28)
Do you wanna go, Elisa? You covered real for us.
Elisa Marcante (10:08.405)
yes. so the we have these new restrictions in for public spaces related to the the to the i gaming industry and we cannot promote brands or games or anything related to the brands to and to the industry in any public space. And in Belo Dizonti we have even more restrictions if I'm not mistaken.
and they also add they prohibit the advertising near to schools which I think it's a great idea. It's a great measure to to prevent to this to prevent minors to access but not access but not to expose them yes expose them to to the industry so I think it's was a great measure and
Fernando Noodt (10:56.958)
Being exposed from yeah.
Elisa Marcante (11:06.845)
I I don't I don't recall the the others, but outdoors, any o any advertising I don't re recall exactly which ones were.
Leonardo Biazzi (11:14.046)
Yeah. I can chime in. Like it's in outdoors, it's in public squares, or if like the the the city of Rio is making if the city of Rio or Belo Horizonte is making a public event like a music, a concert, you can't have betting advertising old ons, for example. So it is pretty max massive.
Elisa Marcante (11:21.769)
Yes.
Museums, near to the museums.
Elisa Marcante (11:33.673)
Yes.
Elisa Marcante (11:42.729)
Yes.
Fernando Noodt (11:42.792)
Yeah, so this is a local type of regulation while the gambling advertising rules that we were discussing throughout the episode are a federal thing. So it's interesting to see whether this will become an issue in the future where the federal government enforces one type of regulation, what type of restriction for gambling promotion and then the cities, the the the states
promote different regulations but we will have to hashtag wait and see for that. of course subscribe to SVC Noticias Brazil's newsletter to keep up to date with all the information around Brazil. We'll see if the cities and the states decide to follow this path. Rio de Janeiro and Belhorizonte or Beloisonci have have embarked on. And and yeah we will of course be following the
Elisa Marcante (12:33.054)
Mm-hmm.
Fernando Noodt (12:38.953)
very closely here on iGaming Daily. But that was all for today. Thank you very much, Elisa and Leo. Thank you very much, Anaya McDonald, for producing this episode. And Fernando Not and to our listeners out there, we'll see you in the next one. Goodbye.
Elisa Marcante (12:44.319)
Thank you, thank you guys.
Leonardo Biazzi (12:45.656)
Thank you for