Subscribe
Share
Share
Embed
From Tijuana, to Lima and to Rio de Janeiro, Latin America is a vast region and often seen as a single market for the gaming industry.
However, navigating these troubled waters may not be easy for everyone and only those who understand how each of its specific markets work will achieve success, especially with Brazil closing in on the specifics of its regulation.
And joining SBC Noticias’ Fernando Noodt and Isadora Marcante, to discuss how operators can avoid the pitfalls and achieve long-term success, not only in Brazil, but all across the region, is Jack Smith, Senior Sales Director at Sportingtech.
Host: Fernando Noodt
Guests: Jack Smith & Isadora Marcante
Producer: Anaya McDonald
Editor: James Ross
To register your interest in the SBC Digital Innovation Payment Expert, sponsored by PXP Financial, GambleID and Approvely, on Wednesday June 12, click on the following link:
- https://sbcevents.com/news/digital-innovation-payment-expert/
Remember to check out Optimove at https://hubs.la/Q02gLC5L0 or go to Optimove.com/sbc to get your first month free when buying the industry's leading customer-loyalty service.
However, navigating these troubled waters may not be easy for everyone and only those who understand how each of its specific markets work will achieve success, especially with Brazil closing in on the specifics of its regulation.
And joining SBC Noticias’ Fernando Noodt and Isadora Marcante, to discuss how operators can avoid the pitfalls and achieve long-term success, not only in Brazil, but all across the region, is Jack Smith, Senior Sales Director at Sportingtech.
Host: Fernando Noodt
Guests: Jack Smith & Isadora Marcante
Producer: Anaya McDonald
Editor: James Ross
To register your interest in the SBC Digital Innovation Payment Expert, sponsored by PXP Financial, GambleID and Approvely, on Wednesday June 12, click on the following link:
- https://sbcevents.com/news/digital-innovation-payment-expert/
Remember to check out Optimove at https://hubs.la/Q02gLC5L0 or go to Optimove.com/sbc to get your first month free when buying the industry's leading customer-loyalty service.
Creators & Guests
What is iGaming Daily?
A daily podcast delving into the biggest stories of the day throughout the sports betting and igaming sector.
podcasts (00:00.142)
From Tijuana to the Patagonia and Lima to Rio de Janeiro, Latin America is a vast region and often seen as a single market for the gaming industry. However, navigating these troubled waters may not be easy for everyone and only those who understand how each of its specific markets work will achieve success. Welcome to another episode of iGaming Daily. I am Fernando Nott, your host for today and I am joined today again by senior business journalist Isadora Marcanchi. Issa, how are you today?
Hi, Fer. I'm really good. I'm doing well. I think I'm really happy to be here with you again. Yeah, it's amazing to be back on iGaming Daily. And thank you to our sponsor of the podcast OptiMove, the number one CRM marketing solution for the iGaming market. 56 % of the EGR Power 50 personalized player experiences with OptiMove. And as a special offer, OptiMove are offering new clients a free first month when they buy OptiMove.
For more information and claim the free month, go to optimum .com slash SBC. Links will also be left in the podcast episode description. And we were saying Latin America is sure in the spotlight, especially with Brazil closing in on the specifics of its regulation. And that's why today we have a very special guest to discuss how operators can avoid the pitfalls and achieve long -term success, not only in Brazil, but all across the region.
Joining us today for this iGaming Daily episode is Jack Smith, Senior Sales Director at SportingTech. Jack, welcome to iGaming Daily. Thank you for having me again, guys. It's good to be here. It's great to have you. It's great to have you for the second time now in the podcast. So let's jump straight in and let me ask you, what's the first thing an operator needs to know when arriving in any of the Latin American markets?
So yeah, as we know, obviously Brazil's regulating at a fast pace and naturally what we'll probably see is a domino effect for the rest of Latam. So as we know, Peru is also very close. The Mincitor is going through at the moment and operators have been putting their names forward to be part of that regulation. But first and foremost, like I said, with the regulation coming in, it's making sure that you're compliant both on an operator and a provider level.
podcasts (02:17.486)
And naturally, as a provider here at Sporting Tech, we're taking the necessary steps to make sure that we're compliant for when Brazil regulates in January. So we obviously recently found out with the ordinance last week that GLI will be the gaming laboratory of choice. And then also in addition, we're working closely with CIRPRO, who are also going to be doing the data transfer policy. So that's something we've been working with as well.
But looking more forward to the future as an operator, I think the key thing is localization. So we're almost trying to create like a level of convenience. So whether that be a payment method, logging into the site and ensuring that it's in Brazilian Portuguese, for example, using Brazil as an example, highly important rather than just using Portuguese and as well, obviously making sure that the site has a localized feel so the consumer needs are met. So looking at things like Brazil, Serie A, Copa do Brasil, Copa Libertadores, for example.
We want to ensure that this is all something that's ready available and naturally front and center of the homepage. So I would use that across all of Latam. It's highly important that you're creating something that when someone does log in, they feel like the site is localized to that country and almost isn't considered as an external operator trying to penetrate that market. And that's something that we've been helping our operators do for a number of years now. Well, you just mentioned localization.
as a key to enter Latin American markets. But apart from that, how do you approach a region with so many regulatory frameworks, which are so different from each other? And how do you adapt to each one to develop a product that can stand out? So I think for us on a platform level, it's about being agile. And something that certainly helped us, I would say, is that with Brazil almost being like the big brother in Latin.
A lot of countries have kind of held off from their regulation. So naturally, as we've seen in other continents and in other parts of the world, someone will put forward a regulation and then other countries will then kind of sit back, allow to see what the pitfalls are as the name of this podcast, for example, and what the benefits are. And then they can certainly kind of fine tune that to learn from mistakes. So for us, it's making sure that we're able to work within each of these countries.
podcasts (04:36.206)
And in doing so, it enables us by obviously following these regulatory frameworks. But more on a product level, we're always looking for the next best and the most innovative thing. And I think with Latam really booming right now, we found that there's a lot of new products, whether it be a casino game, for example, or a new sports product, something that really focuses on that market specifically. Our commercial and our product teams are forever scouting the market and looking for the next best thing. So for us,
It's working both on a product level and obviously following regulatory frameworks. But like I said, at the start of this, it's being agile and being able to do that. And that's something that we found us to be very good at. Well, you've certainly certainly given operators a lot to think about so far, and we just started. But what would you say to them, to an operator that is looking to pick a business partner specifically to launch in Latin America? What would you say to them? So it's something I've alluded to earlier. It's definitely localization.
You need a partner that you can trust and someone that has good case studies on the continent. And that's something that we've been very good at. Like I've said previously on the last podcast, we've been operating in Latin America now for four to five years. So we've really seen great changes within that time period. A lot of companies are now naturally targeting that as it's the next big thing and they want their piece of the pie. So for us, we started with a product that fitted the market four or five years ago.
And then since then, like I mentioned on the last question, it's being agile and we've expanded on that and created more of a tailored solution for each of those countries. And as I said at the beginning of this, it's really about offering something that is giving a convenience factor to the consumer needs, because at the end of the day, the consumer is the most important person within this puzzle here. So if you're not localized and you're not able to kind of create that factor,
It's very difficult to penetrate. I mean, we see a lot of operators come from afar, whether it be Europe, the US, for example, and they try to use their same product suite and their same marketing strategy to penetrate a market where the needs of the consumer are very, very different. So for us, essentially all we're doing is we're giving the technological advancements and giving our operator the freedom and flexibility to use that.
podcasts (06:58.734)
And then they've been able to kind of work within their market and succeed essentially. So we work almost, and you'll pick up on the fact that I said partners, because we work with every operator as a partner. All we're essentially doing him is giving them the tools to succeed and we allow them to use their localized knowledge. Let's just focus on Brazil a little bit right now, which is a country that is undoubtedly in the spotlight right now with regulation seem to be completed.
And what we want to know is how are you following the development of the details about the framework here in Brazil? So for us, it's no secret, it's our core market. So we've been very, very close to this. We're very fortunate that we have a number of operators that excel and are considered tier ones within that region. So naturally this has been of huge importance to us. It's just about following the timelines and ensuring that we're adhering to any regulatory framework.
And I mentioned in the first question, things like GLI, for example. So we recertified as soon as we knew that it was going to be part of the regulation. And I also mentioned as well, we're very fortunate that we're one of 11 companies that are working with Serpro in Brazil and some of our tier one operators around the data transfer policy. So what that basically means is that we're essentially providing the data of players and making sure that it fits within the regulation to ensure that not only are we compliant,
but then our operators are providing the correct data once Brazil does regulate in January next year. So for us to summarize, it's highly important and it's something that we've been working very closely with with both our compliance team and our legal teams and then more importantly our product teams because as we've seen over the recent weeks, there's multiple changes and new like hurdles for both an operator and a provider to jump over.
So for us, again, it's touching on the being agile and it's something that we've been working very hard to, but come January, all of our operators will be compliant and most importantly, as a platform will be regulated and compliant in Brazil. Well, apart from compliance and regulation, right now in Brazil, there's a lot of different size operators. So how do you think the industry should approach the country with...
podcasts (09:20.91)
this into taking this into consideration the amount of operators, there's big operators, there's smaller operators. And how can a partner like Sportintech help them differentiate themselves from the competition in Brazil? So it's an interesting one because I think some we've done some recent research, I think at the moment, around 30 operators open monthly in Brazil, and we're currently sitting at around 5000 live operators. So the market potential is huge.
But what we're seeing is that there's probably 20 to 30 operators that are truly succeeding. And whilst the others are generating good revenue, we all know that the cost of the license is very high. So that will naturally deter some operators. And we have conversations with operators of all sizes, to be honest, who do have some concerns over that. So for us, we potentially see that there could be some sort of consolidation.
people selling their market share into the larger operators who will then be able to penetrate the databases provided. But I think, again, it's going back to localization, you need to pick the right partner that understands the market. We see it internally as a company, it's the reason that we're hiring so many roles in Brazil right now, because I'd be silly to think that I would understand what a Brazilian wants when I...
only visited Brazil for business purposes. So the consumer needs are very, very different. So for us, it's been of huge importance that we do employ people, not just Brazilian, they've been based in Brazil. I mean, iGaming is fairly immature, whether it be three or four years in Brazil as it stands right now. But for us, it's kind of understanding what does the consumer want? And how can we use our internal colleagues to help us understand that better?
And naturally what that's meant is that different departments have changed strategies, they've been more flexible, and we've been really tapping into some of that insight that they've been able to provide. And that should be the same for an operator. If you're looking to penetrate the market, you 100 % need to be talking to local people on the ground and understanding what the consumer wants and needs are, because they are very, very different to what we experience in Europe and other continents. Jack, what's the work like once you've helped an operator with their offering?
podcasts (11:40.014)
How do you follow up with an emerging market like Brazil as it evolves over time? Yeah. So again, this touches into what I mentioned earlier about being agile. All we're essentially doing is arming our operators with the technology to succeed. We'd be silly again to say that we know it better than they do. So by providing them with like an agile product suite and having a constant roadmap of innovation and new products and new features.
Something that we've seen obviously with the SB C -Show, for example, in Rio, it was kind of us, it was opening our eyes slightly to the number of new casino providers and other different content providers that are localized purely to Brazil that, again, are tapping into that consumer needs and understanding, and we just know that they're going to succeed.
And again, we're being very, very vocal and open with our existing operators. So if there's a certain provider that they feel will add value to the business and to us as a platform, then we're all is. So it's very much about following the trends, looking at what's coming again, that ease of convenience. So whether it be a payment method, that's very, very, very innovative. It's very easy to get in and out.
We're trying to create a whole sense of convenience both on a localized level and also just using the product. So for us, we're constantly evolving. We feel that right now we're where we need to be, but in a year's time, we know that the market will change yet again and we need to make sure that we're following that so that we're constantly at the front of the queue. And Jack, last time you were featured on iGamingDaily, we were just coming off, like you said, the back of...
SBC Summit Rio and we asked you what to expect from the company. Back then you mentioned your focus was expansion. How is that going and what can we expect again from Sportintech into the near future? So yeah, I mean, things have changed. I think, like I said, the ordinance in Brazil might have changed things slightly, but again, expansion is still very key to us. We are looking at multiple markets and how we expand in those as well. But with Brazil being the big brother,
podcasts (13:53.358)
in Latam, it still does remain a core focus for us. It's again, helping our existing operators and then especially operators that are looking to a regulated Brazil that are looking for a technology with more flexibility and agility. But in terms of expansion, where we've done Minstretour, so Peru is very much on the agenda, as well as other markets as well. So we're purely looking towards regulated markets right now.
And as I mentioned earlier in this podcast, we feel that there will be a domino effect. So we want to be at the front of the queue when these markets do regulate so that any operators that are looking for a platform that's innovative and can service their purposes and meet their demands, then we want to be very much in that conversation. So for us, the remaining six months of the year is very exciting. A regulated Brazil is exciting. And in addition, being able to launch into new territories and really give a
a portfolio expansion for the business that's very much on our agenda. And it's an exciting six months ahead. Jack Smith, Senior Sales Director at Sportintech. Jack, thank you very much for being with us today on iGaming Daily. Thank you very much for having me, guys. Thanks, Isadora Marcanti. I'm Fernando Nott, your host for today. And thank you very much, Ania McDonald, our producer for this episode. And to all of you out there, we'll catch up next time.