SBC Leaders Magazine Issue 33

Argentina’s crypto revolution

Hyperinflation crisis creates opportunity

Global ambitions

Easygo’s Brais Pena on Stake’s M&A strategy for regulated markets

Sunrise on the equator

Playgreen CEO Nathan Dionne on Ecuador’s emerging market

The Brazilian Resistance

Betmais CEO Lívia Troise and the homegrown operators facing an international invasion

Ready for kickoff

Flutter has emerged from three years of relative retrenchment with a bang - acquiring just over half of Brazil’s leading independent operator NSX Group for $350m and buying its way to the top of the podium in Italy via its €2.3bn acquisition of Snaitech from Playtech.

Since acquiring Sisal and Tombola in quick succession at the end of 2021, Flutter has been relatively quiet with just the €141m acquisition of Serbia’s Maxbet disturbing a focus on its US listing and reducing leverage.

However, investors have told CEO Peter Jackson and his team that they are more interested in growth than leverage. It has emerged from this period of relative calm equipped with a reinforced balance sheet that has allowed it to splash the cash.

NSX Group is the number four operator in Brazil. As you can read in our cover feature (page 8), it sits behind international brands Betano, bet365 and Sportingbet. Its Betnacional brand holds a 9 per cent online market share, according to the analysts at Jefferies, which is reinforced by MrJack, Pagbet, Betpix, TVBet and now, Betfair Brazil.

This battle between local operators such as our cover star Betmais and the international operators will largely decide how the consolidation of the market plays out.

As our Content Director Ted Menmuir points out in his column on page 45, many would-be acquirors have been scarred by their experience of the US market. However, the lack of internal borders in Brazil’s gaming market (unlike the US state-by-state) system, should allow more operators to flourish. And you wouldn’t rule out Flutter coming back for more. It still has some way to go to match the 30 per cent market share it now commands in Italy.

Steve Hoare, Editor, SBC Leaders

The SBC Leaders Magazine is brought to you by SBC - Sports Betting Community:

Editorial Team: Andrew McCarron, Craig Davies, Ted Menmuir, Joe Streeter, Chris Murphy, Conor Porter, Charlie Horner, Jessie Sale, Fernando Noodt Molins, Callum Williams, Viktor Kayed, Martyn Elliott, Lucia Gando, Jessica Welman, Ted Orme-Claye, Danny Lee, Steve Hoare, Justin Byers, Kieran O’Connor, Christian Lee, Tom Nightingale, Elisa Marcante, Isadora Marcante

Sales Team: John Cook, Rasmus Sojmark, Alyona Gromova, Conall McCabe, Jan Kowalczyk, Richard Deacon, Bob McFarland, Craig Brown, Juan Ospina, Ed Young

Creative Lead | Design and Layout: Jessica Camilleri

08 Betmais

6 People

Hugo Baungartner’s Life In and Outside Gambling; plus all the latest people moves

8 Spotlight: Brazil

Lívia Troise of Betmais leads the Brazilian independents preparing for the international invasion

22 Desert Diamond 28 Stake

14 The Hot Topic: Match-fixing in Brazil

The Brazilian sports betting market is in danger of being strangled at birth

82 Comment: Ras Sojmark

SBC Founder on bringing the tribes together

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CASINO

21 Column:

Poker’s new dawn

Joe Streeter on GG Poker’s acquisition of WSOP

22 Feature: Desert Diamond and PlayStar

US operators carving a profitable niche

28 Interview: Brais Pena of Easygo

Chief Strategy Officer on Stake’s global ambitions

32 Interview:

Facundo Giorgi and Andrés Cascante of Ondiss

Argentine supplier looks to Brazil

36 Thought Leadership: Anton Rublievskyi of Growe

Chief Executive Officer on building a culture of collaboration SPORTS

45 Column: Brazil beckons

Ted Menmuir on the 113 applicants for Brazil’s sports betting licenses

46 Interview: Nathan Dionne of Playgreen

Chief Executive Officer on leading the way in Ecuador

50 Interview: Iliana Pineda Echeverri of Wplay

Chief Legal Officer on women in gaming

PLAYER

PROTECTION

55 Column: Fight fight fight

Steve Hoare on gambling’s war on itself

54 Feature: Who is responsible for social responsibility?

Leading affiliates outline their struggle to be responsible in the face of stubborn opposition

MARKETING

63 Column: Athletes as casino ambassadors

Jessica Welman on the evolution of marketing Stateside

64 Feature: Brazil’s marketing restrictions

Andre Gelfi of Betsson and IJBR on marketing and social responsibility

PAYMENTS

69 Column: Brazil’s payments revolution

Ted Orme-Claye on the importance of Pix

70 Feature: Argentina embraces crypto

In the midst of a hyperinflation crisis, an innovative solution has emerged

74 Interview: Steven Salz of Rivalry

Crypto has uses beyond easy access to grey markets, says CEO

78 Thought Leadership: Andrea McGeachin of Neosurf

CEO on payments in Latin America

My Life IN Gambling HUGO BAUNGARTNER

The Chief Commercial Officer of Brazilian operator Aposta Ganha and Head of its Mexican operation

Apuesta Gana tells us about his career and his life outside of work

RCT Gaming, 1997 - 2020

In 1993 the Brazilian Minister of Sports had passed a bingo law to help fund football clubs. My father had a computer shop. He had six brothers, one was a statistician and one was a programmer. They decided to make a video bingo machine like the ones you had in Spain at the time.

First they made one machine, then 100 machines, then 10,000 machines. I started as a technician and then I went on to coordinate this small operation in the state of Sao Paulo and then I went on to coordinate the operation in Brazil. And then Lula made everything illegal.

This forced us to go abroad and we opened an office in Lima. In 2010 I was told to go to Mexico and open a Central America operation. I moved with my family to Mexico City.

Salsa Technology, 2018-2020

At RCT we had machines all over Latin America – in Mexico, Guatemala, Costa Rica, Panama, Colombia, Peru, Chile, all over the place. We wanted to start something in the US but in 2018, a friend invited me to open an online B2C operation in Mexico. Which I accepted as a challenge. This was Peter Nolte’s Betmotion. And it was a challenge. We decided not to continue with it after two years but I enjoyed it. Peter had a great team working out of Uruguay, who I really enjoyed working with.

I did this in tandem with the family business but in 2020, I decided tox try something different for myself, my family and my career. It was a big decision but I had the total support of my father, which was very important for me. I’m still on the board of the family business.

Yolo Group, 2021 - 2023

I worked at Jackpot Software for a year and then joined the Yolo Group. I got them a licence for the Mexican operation of Sportsbet. I also did some work with their B2B businesses – Caleta Gaming, which had some Brazilian partners.

Aposta Ganha, 2023 - PRESENT

Yolo Group never launched in Mexico but I went back with Aposta Ganha and opened its Mexico operation Apuesta Gana. And then the same month we launched in Mexico, President Lula announced the regulation of the Brazilian market. It’s ironic that the very same president that kicked us out of Brazil in 2004 is now welcoming back gambling. He has had a big influence on my life.

The shareholders said we need you in Brazil as well because there is a big mission for everybody to get the licence, to organise everything, to get our platform approved by the international lab, and to make the product better. So, now I’m overseeing Mexico and contributing to Brazil as well.

My Life OUTSIDE Gambling

THE FAMILY MAN

Life is good. I have a wife and two boys aged 15 and 12. I love Mexico. We still go there every year. My first son was just oneyear-old when we moved there. And I’m there even with Apuesta Gana too. We have a lot of friends there and a Mexican Labrador called Samba in the family. Mexico is my second home.

THE ATHLETE

My wife encouraged me to start running six months ago and I’m very glad she did. I’ve done my first two races – a 5k and a 10k. I’m doing a 15k in October and plan to do a 21k in April. But that’s it.

My wife says she wants to run a marathon. I said: “Good for you, I’m happy for you and I support you, but I don’t have to suffer that much.” I also swim twice-a-week. I do sports six days-a-week.

I support Santos but they’re not doing so well at the moment. They’re in the second division of the Brazilian Championship. But that’s fine. Once you support a team you never change.

THE WINE LOVER

It started as a passion and then I went into it professionally. For a few years, I was in charge of wine lists at several restaurants and hotels. I was also a sommelier teacher at the SENAC Gastronomy University. I have visited Italy, Spain, South Africa, France, Chile and Argentina to build my knowledge. Nowadays, my favourite wine regions are Piedmont and Burgundy.

Leaders making moves

Superbet founder Sacha Dragic has returned as co-CEO to work alongside Jimmy Maymann. VP of Engineering

Sameen Jalal has been promoted to Chief Technology Officer. VP product and Data Andrei Dusu has taken on the role of Chief Product Officer. CMO Albert Simsensohn has moved to COO. Romania General Manager Adam Lamentowicz has been appointed Chief Commercial Officer for CEE. Eamonn O’Loughlin will be CCO International.

Crown Resorts has announced the departure of CEO Ciarán Carruthers at year-end with current president and COO David Tsai to become acting CEO.

Jake Williams has joined Underdog as the new SVP of operations. He was previously COO at PointsBet US before it was sold to Fanatics.

LeoVegas Group has recruited former Malta Gaming Authority Chief Executive Officer Carl Brincat as its new Director of Policy and Regulatory Affairs.

Wynn Resorts has appointed Max Tappeiner as president of Wynn Al Marjan Island, the operator’s United Arab Emirates resort currently under development.

Gauselmann Group-owned casino games developer Merkur has appointed Christian Reinhard as Chief Technology Officer. Reinhard joins from the automotive industry.

Optimove has recruited Beehive Co-Founder Adi Dagan as Senior Director of Partnerships.

The Star Entertainment Group has appointed former COO of Crown Resorts Melbourne Mark Mackay as Chief Executive Officer of The Star Gold Coast.

Brazilian companies might be more agile and flexible in responding to local needs than international operators “

Lívia Troise, Betmais

Words by ELISA MARCANTE

As Flutter and MGM Resorts flex their muscles in Brazil, LÍVIA TROISE, CEO of Betmais, FELLIPE FRAGA, Business Director of EstrelaBet, and ANDREAS BARDUN, founder and CEO of KTO, speak exclusively to SBC Leaders about the battle for market leadership between Brazil’s operators and increasingly mighty international competition

MGM Resorts CEO and President Bill Hornbuckle said the partnership will help the brand enter the national market more quickly. As in Canada, MGM has chosen a local solution for the local market. Its LeoVegas subsidiary will power the Brazilian BetMGM, rather than its US joint venture partner Entain.

Lívia Troise, the Chief Executive Officer of independent Brazilian operator Betmais, is not alone in expecting more. She is preparing for a period of “intense activity”.

“The regulation and market reconfiguration we are experiencing should drive consolidation between major players and smaller operations,” says Troise.

She believes the M&A frenzy should benefit the market as a whole, as it will reduce the number of operators and allow the most prepared to remain, which should in turn increase the quality of services and boost investment.

Troise is expecting a period of fierce competition in which smaller brands may struggle to survive. However, the CEO of Betmais believes these smaller operators could benefit from niche markets.

International brands such as Betano and Bet365 have swooped for huge market share but Flutter’s potential purchase price of Betnacional reveals the value and strength of the country’s indigenous brands. So who are the leading independent operators?

BRAZIL’S LEADING INDEPENDENTS

While you can measure these things in multiple different ways, Flutter‘s recent acquisition Betnacional is probably the leading independent Brazil-born brand in the market. The very fact that Flutter bought it – it tends to go for market leaders – and the valuation suggests as much.

Merging with Flutter would not be its first strategic move this year. Parent company NSX Group acquired TVBet earlier in 2024, a deal that significantly strengthened its position in the north-east of the country.

Like many Brazilian operators, Betnacional is licensed in Curaçao, at least until it gains a Brazilian licence. It sponsors the Campeonato Carioca, and ventured into new segments, becoming the official sponsor of singer-songwriter Seu Jorge and singer Ludmilla.

In just six years, Esportes da Sorte has established itself as Betnacional’s biggest local rival. Located in Pernambuco, in the north-east of the country, the company signed sponsorship agreements with football clubs such as Grêmio and Corinthians.

Betmais is one of the pioneers of the Brazilian betting market. The São Paulobased operator was founded in 2014 and holds an operating licence granted by the Government of Curaçao.

In the lead-up to legalisation, the company has increased its marketing investment by 3.4 times and, as a result, achieved a 5.1-fold increase in deposit volume and a 257 per cent increase in monthly active users (MAU).

“The average first time depositors (FTDs) amount is R$500 ($90), well above the Brazilian market average,” adds Troise, who says gross gaming revenue has increased by 136 per cent and estimates the operator’s market share at 4 per cent.

EstrelaBet has offices in São Paulo and Belo Horizonte, the capital of Minas Gerais. The platform was launched in 2019 and is another Curaçao-licensed entity. The operator is the official sponsor of Futsal and Beach Soccer for the Brazilian Football Confederation and has signed sponsorship contracts with several clubs, including Internacional and Botafogo.

“

We were always the underdogs that kept on coming

Andreas Bardun, KTO Group

EstrelaBet CEO Fellipe Fraga says the industry has been undergoing a cultural transformation process: “It’s never a simple path, but it has been successful.”

Fraga says the company has approximately 10m players and more than 400 employees.

Other local brands of note include Bet7k, Brazino777 and Galera.bet

INTERNATIONAL OPERATORS IN BRAZIL

While the cupboard is not exactly bare beyond the companies mentioned above, the market share of other local operators is likely below 1 per cent.

International operators such as Betano, bet365, Blaze, KTO, Sportingbet and Superbet have emerged as Brazilian market

leaders, with all sitting safely within the national top 20 by market share.

Kaizen Gaming International’s Betano brand was the first to apply for a federal licence to operate, submitting its application to the federal government on May 26th of this year.

Betano is the official sponsor of several national and international football clubs and events, including the Brasileirão Betano and Copa América 2024 championships, and Atlético Mineiro.

Its marketing muscle has paid dividends across Latin America and it is Brazil’s leading operator on most metrics. According to Similarweb, Betano had 7.2 per cent of Brazilian gambling traffic

over the summer of this year. According to Google Trends, it ranked first among betting sites.

bet365 is almost as well-known to players in Brazil, as it is in its UK homeland. It sits just below Betano in Similarweb’s ranking and on Google Trends’ list of the most visited online betting sites. The platform had a monthly average of 112.4 million visits and a traffic share of 1.72%. Like Betano, the company stood out due to its advertising and SEO efforts, with both brands being regarded as serious and transparent with users.

While the Curaçao-headquartered Prolific Trend is not a Brazilian native, its Blaze brand has gone to all sorts of lengths to prove its legitimacy in the local market and could be a target for international acquirors.

“

The most crucial aspect for the future is the organisation of national operators to adopt a leadership stance

It faced and overcame allegations of actions contrary to national betting regulations. The São Paulo Court of Justice, after finding no irregularities, recognised that Blaze was operating legally and allowed the company to continue its activities in Brazil.

It was founded just five years ago and is one of only five operators to be licensed by the Rio de Janeiro State Lottery, which allows it to operate in Rio de Janeiro state. It is the main sponsor of Santos, and counts Brazil’s most famous current player Neymar as a brand ambassador.

Founder and CEO Andreas Bardun launched Malta-based KTO Group in 2018 after a conference exchange with SBC founder Rasmus Sojmark, who told him to stop moaning and form his own company. He did just that with a specific focus on Latin America. Its Brazilian launch came a year later and it has quickly established itself in the top 20.

The company withdrew its betting brand from Chile and Peru in August this year to focus solely on the Brazilian market.

Sportingbet’s prominence in the Brazilian market owes much to the prescient vision of former COO Kenny Alexander. As CEO of GVC Holdings (which would later become Entain under his successor), Alexander also acquired Brazilian bingo and sports betting operator Betboo for just €21m in 2009.

Alexander is long gone but his legacy remains, as Sportingbet sits among Brazil’s leading brands.

Among many subplots in the emerging market, Entain’s head-to-head with its US joint venture partner MGM Resorts (see above) will be an intriguing prospect. With Sportingbet firmly established, Entain has a head start but, as evidenced by its splashy entry in the UK, MGM Resorts is likely to spend big to establish the BetMGM brand in Brazil.

BRAZIL VS THE REST OF THE WORLD

Predicting how the native brands perform against international competition is a complex task, admits Troise, but the precedents in other markets are good.

Fellipe Fraga, EstrelaBet

The Betmais CEO claims local betting companies have more extensive knowledge of the home market, and this could be an important differential in the competition with global operators. She also believes the Brazilian companies may become “more agile and flexible in responding to local needs”.

However, she acknowledges that few can match the scale, knowhow, and financial resources of a bet365 or Betano. She is not alone in appreciating the importance of data analysis, artificial intelligence and personalisation as keys to improving local products but also highlights the creation of “an integrated betting ecosystem”.

In essence, she is talking about expanding the portfolio beyond sports betting and into casino games, lottery products, poker, esports, and more.

“This could also be an important strategy for retaining bettors and increasing the average ticket,” says Troise and each product will have a particular local flavour that niche operators might be able to find.

EstrelaBet’s Fraga says: “The most crucial aspect for the future is the organisation of national operators to adopt a leadership stance and actively participate in market development.”

To this end, Troise says the industry needs to step up and improve its advertising. As with other newlyregulated markets, the issue of advertising will be of huge importance during the early stages of Brazil’s new regime.

Troise states: “We need to conduct educational campaigns explaining how the rules work, best practices, and the risks involved in the industry. All of this is essential to promote a healthier and more responsible betting environment.”

Fraga says regulation of the market will have a big impact on all brands operating in Brazil and that success will depend on how well local

operators adapt to it and innovate to remain competitive. He says: “Local operators will strengthen international partnerships, generating new innovation tools and human resource development capable of supporting the local sector.”

KTO founder Bardun sees this as a key battleground, where finding experienced staff in a new industry will be a challenge. He encourages young Brazilians to look to the betting and gaming industry for career opportunities.

Troise is confident that experience counts. She cannot see a new entrant matching an operator that has been in the market for 10 or 20 years, as many of those mentioned in this article have. However, we have seen rapid growth from the likes of KTO and EstrelaBet. The latter’s Business Director Fraga emphasises the possibility of new market leaders emerging over the next few years.

All agree there will be consolidation and none would count themselves out from being involved in that process.

Bardun says: “We are exploring partners, joint ventures and also launching our own second brand but no decision has been made as of yet. Our growth strategy is what it has always been, we are working relentlessly and we were always the underdogs that kept on coming.”

“The next decade will be challenging but also fascinating,” asserts Troise. “The brands that manage to adapt to changes, innovate, and understand consumer needs will be the big winners.”

In turn, Bardun emphasises that the market is open and “ready for players who want to take advantage of opportunities, whether local or global”.

The KTO CEO believes that the Brazilian betting market will always be vibrant and competitive: “If we keep growing and innovating, I’m sure Brazil will become a key market in the global betting industry.”

THE WAR ON CORRUPTION

A series of match-fixing scandals have threatened to disrupt and potentially stop the launch of Brazil’s regulated sports betting market. SBC Leaders looks at how the regulated sector is fighting back

In November 2022, the Public Prosecutor’s Office of the Brazilian state of Goiás launched an investigation that would become central to the debate over the regulation of betting in Brazil.

Football matches between Vila Nova and Sport, Criciúma and Tombense, and Sampaio Corrêa and Londrina had caught the attention of authorities due to some gossip heard behind the scenes. The president of Vila Nova Hugo Jorge Bravo, who had been newly appointed as commander of the Military Police’s Border Operations Command, filed the initial complaint.

A player on his team had told Bravo that he was being threatened for refusing to participate in a match-fixing scheme. The Public Prosecutor accepted the Vila Nova president’s complaint and initiated Operation Maximum Penalty, which was conducted in two phases and accused 32 people, including players and bettors, of fraud.

This was the beginning of the end for Romário, (not that Romário, we’ll hear more about him later). This Romário, a former midfielder for the Goiás club and the main actor in the operation, was permanently banned from football by the Superior Court of Sports Justice for encouraging and recruiting his teammates to participate in the criminal scheme. From there team-mates, the situation escalated.

POLITICAL CRACKDOWN

On May 17, 2023, the Parliamentary Inquiry Commission (CPI) on Football Manipulation was established in the Chamber of Deputies. Over the months, the Commission heard from betting industry players and football professionals, and even threatened not to vote on the law to regulate fixed-odds betting in Brazil, despite it already having been signed by President Luiz Inácio Lula da Silva in July.

However, the CPI concluded without voting on the final report. At the time, the rapporteur Felipe Carreras, a deputy affiliated with the Brazilian Socialist Party of Pernambuco, declared that no evidence was found against betting operators during the investigations. According to Carreras, the reports showed that the betting sites were harmed by the fraud.

Words by ISADORA MARCANTE

“

It is up to the regulator to create massive educational campaigns explaining what match-fixing is, why it is so harmful, and how to prevent it

Months passed before Romário, one of Brazil’s most famous and most-loved former footballers and now a senator from Rio de Janeiro, decided to take action.

During a speech in the Senate, Romário advocated for the creation of another CPI to investigate match-fixing in football and betting fraud, continuing the work done by the deputies. The signatures were gathered, and the CPI began in the Federal Senate. Such is Romário’s profile that this time, the matter was unlikely to disappear quietly.

Once again, hearings were conducted and the Commission heard from John Textor, the majority partner of SAF Botafogo, who claimed to have evidence of possible fraud in football. The Brazil international Lucas Paquetá, who plays for West Ham United in the English Premier League, was also invited to testify.

As the investigation continued, the debate about the lack of integrity in football and sports betting intensified, leading to a genuine question: should Brazil continue with the regulation of the sports betting industry with this threat to the national game looming large?

A GLOBAL PROBLEM

“Match-fixing is a global problem and we hope that Brazilian regulation will encourage cooperation between different jurisdictions. I believe it is essential to combat the issue effectively,” says Athos Alexandre, CIO of the Brazilian operator NE TEC.

“The expectation is that international standards will align with Brazilian ones to facilitate information exchange and the enforcement of penalties. This is a problem that comes from the outside in. It is not the betting operators, odds providers, or systems in general that try to manipulate the market. This happens on the ground, literally ‘on the field,’” says Alexandre.

What Federal Law No. 14,790/2023, popularly known as the Betting Law, and the ordinances published by the Ministry of Finance’s Secretariat of Prizes and Betting (SPA) bring is transparency — of operations, monitoring, rights and duties, and legitimacy.

From general rules of operation to responsible gaming practices and the prevention of

Filipe Rodrigues, Sport Integrity Global Alliance

for Justice for Rio de Janeiro Sérgio Zveiter

money laundering and other financial crimes, the regulatory process for the world’s fastestgrowing betting market has set the path to be followed. From January 1, 2025, only sites licensed by the Brazilian government will be allowed to operate in the country. Those that do not obtain a licence will be excluded from the legal game.

Under the domain bet.br, with compliance with technical requirements and on-site inspections, operators will undergo a thorough examination before paying R$30m (around US$5.5m) for the licence, which will authorise them to operate betting activities throughout the country.

In addition, there are specific requirements targeting match-fixing.

Article 8 of the Betting Law requires operators to create corporate policies that promote sports integrity and combat fraud. SPA Ordinance No. 827, in Article 12, requires proof that the operator is integrated or associated with an independent sports integrity monitoring organisation, national or international, whose objective is to combat match-fixing in sports events.

Filipe Rodrigues is a sports law specialist and permanent member of the Integrity and Betting Committee of Sport Integrity Global Alliance Latin America. He is the director of the Sports Management Institute, which offers short courses in sports management and related consulting, and the founder of Positive Play, an association that promotes responsible gaming.

The lawyer states: “The greatest protection against match-fixing and other frauds is education. It is up to the regulator to create massive educational campaigns explaining what match-fixing is, why it is so harmful, and how to prevent it.”

However, Rodrigues does not absolve betting operators from adopting measures and policies to curb fraudulent behaviour. For him, companies “need to include in their policy and budgets the training of employees, service providers, and all those sponsored by gaming funds”.

Since the problem affects the sports community, the expert is categorical that it is up to sports entities to “combat the manipulators” and play an educational role in the “microsystem” of which its members are a part.

Romário with Minister

Gabriel Perin, NE-TEC

In Brazil there is a huge anti-gambling lobby led by evangelists and conservative parliamentarians, who would use the match-fixing scandals as an excuse to ban sports betting.

However, if you speak to any expert in the space they will point out that match-fixing harms regulated sportsbooks as much as it does the rest of civil society. The only organisations that benefit are organised crime syndicates.

BRAZIL’S COMPLEX HISTORY

Former Brazilian President Getúlio Vargas legalised the exploitation of gambling and betting in 1934, promoting the “Golden Era” of casinos in the country. However, in April 1946, everything changed. Then-president Eurico Gaspar Dutra signed a decree eliminating the activity in the country—at least on paper.

Between the 1960s and 1990s, Brazil again attempted to allow betting and gaming, but without success. While land-based casinos were illegal, many clandestine establishments were set up and continue to operate to this day without any regulatory oversight.

Whether it’s casinos or sports betting — physical or online — the lack of control, even minimal, over a particular economic service is catastrophic.

Digital influencers on social media have amplified the match-fixing scandals to such a degree that it has destabilised the reputation of the betting industry in the eyes of the general public.

Experts in the field, like Rodrigues, hope that regulation will protect the entire sports betting ecosystem, including athletes, clubs, confederations, operators, suppliers, bettors, wider society and governments.

“There are tools for capturing live data with speed, accuracy and quality that allow for thorough investigation. This includes AI-powered data collection directly from the venue, without human intervention. As a result, the generated data is of the highest possible quality in terms of consistency, accuracy, speed, and integrity,” which deters and prevents fraud and facilitates easy detection in case of one.

Companies such as Genius Sports and Sportradar and the organisation International Betting Integrity Association work to prevent sports manipulation and promote betting integrity in various countries with regulated gaming markets.

These companies use technologies that identify, monitor, and investigate cases of suspicious betting, allowing alerts to be sent to all those involved in protecting the industry.

Athos Alexandre, NE-TEC

I was on the bench at times, and telling players what to do, giving orders to the coach. It was that easy “

NE TEC’s in-house lawyer Gabriel Perin Siqueira says: “This activity causes damage to operators’ reputations and ultimately reduces the credibility of the sector, which will consequently lead to bettors abandoning betting companies and eventually the market if credibility drops drastically.”

“The mass abandonment of players [due to manipulation] is counterintuitive to the movement that companies are making now by complying with regulation, as this act demonstrates that companies are seeking a long-term relationship with bettors, and this cannot be achieved without market credibility,” Perin adds.

The consequences today can be calculated, and the responsibility assumed.

With the regulation of sports betting and online gaming in Brazil, criminals who commit betting fraud and manipulate the natural course of sports—whether on the field, court, or mat—will be held accountable under the law.

Among all sports, football seems to be the prime target — at least in Brazil — and matchfixing damages the image of the sport as well as that of betting sites, despite the main culprits being Asian betting syndicates.

MATCH-FIXING IN ACTION

Wilson Raj Perumal, a Tamil Indian born in Singapore and convicted in Finland and Singapore for a total of 11 years for match-fixing in various football matches, estimates that he has pocketed US$5m from sports manipulation crimes.

Perumal did not serve his last sentence of five years in Singapore, as he was extradited to Hungary in 2012 as a prosecution witness. Two years later, the world would learn in-depth about the Asian fraudster’s story.

The book “Kelong Kings,” written with investigative journalists Alessandro Righi and Emanuele Piano, revealed the full scale of his match-fixing exploits.

At the time of the book’s publication, in an interview with CNN, Perumal said: “I was on the bench at times, and telling players what to do, giving orders to the coach. It was that easy. There was no policing whatsoever.”

Fernando Paz, commercial director of ABSOLUT Sport, the official fan travel agency of CONMEBOL for the Copa América, also highlights the need for compliance.

“An operator that is serious about the consumer must be able to monitor a range of activities and continuously offer training courses to its employees,” says Paz. “In addition to prevention and monitoring, they can offer ongoing educational programs to the most vulnerable to match-fixing, such as players, referees, coaches, and even managers.”

The companies also need to be transparent and present in the relationship with regulators to avoid problems related to betting fraud.

“The compliance department must establish clear communication with the company’s other teams, promoting a culture of integrity and risk management,” Paz emphasises.

Those who disregard the compliance department’s signals may face dire consequences.

In the end, it’s about protecting the sporting environment and the industry, and perhaps it is only with solid foundations that they can operate together in the long term, becoming mutually beneficial for everyone involved.

CASINO

Interview: Facundo Giorgi and Andrés Cascante of Ondiss

WSOP ACQUISITION SPURS FLUTTER INTO DEFENCE OF POKERSTARS

Since the boom of the lockdown years, questions about the stagnation of poker have returned but there are signs of life, writes CasinoBeats Editor JOE STREETER

GG Poker’s $500m acquisition of World Series of Poker (WSOP) reveals one company, at least, which is prepared to invest in poker’s future.

Whilst WSOP events are set to remain at Caesars venues, Caesars’ sale of the brand and operation to GG Poker shines a light on the next phase in the evolution of WSOP.

GG’s move into brick and mortar events cements live poker’s place in an industry that seemed to be heading inexorably into the digital space.

Live poker has continued to flourish – particularly in Las Vegas. For consecutive years, the World Series of Poker Main Event set new records for the largest prize pool in live poker tournament history. Close to 10,112 players turned up for this year’s, eclipsing last year’s milestone of 10,043 entrants.

Furthermore, the live events have been steadfast in attracting the stars. Some of the most famous faces from myriad sectors – from

Hollywood to the Premier League – have been drawn to poker. This pulling power is such an important asset for operators to exploit.

Nonetheless, the WSOP acquisition drew a catty response from Peter Jackson, the CEO of PokerStars owner Flutter Entertainment.

“GG Poker operates in a lot of markets that we wouldn’t be prepared to operate in,” Jackson told analysts. “So I think there’s some interesting questions there for some of those people involved.”

Jackson and his CFO Rob Coldrake went on to big up PokerStars for the first time in a long while. They claimed PokerStars continues to provide the firm with significant opportunities across the US. While there has been no legislative movement for online poker or casino, there has been talk of online poker, which is more palatable to land-based casinos, being used as a beachhead from which to launch online casino legislation at some point in the future.

“When you look at it globally, poker is breaking down into different segments from a liquidity perspective,” observed Jackson. “We are in a strong position in some of those local markets because of the strength of the local hero brands that we have.”

Coldrake highlighted the positive progress of poker during the opening quarter of 2024 – albeit without going into detail on numbers. In fact, he

went one further describing the “transformation” of Stars during Q1 – again, without going big on specifics beyond a launch in Switzerland in July.

There was also renewed optimism from Coldrake for PokerStars continuing to experience green shoots in the US.

“When you look at the PokerStars business in the rest of the world, we continue to see the positive impact of some pricing initiatives that we’ve put in place,” Coldrake continued. “We’ve made some changes to both the loyalty, which has resulted in cost savings. And we’ve also had a number of offset savings across our casino products. So really happy with the way that we’re trending on poker overall.”

While poker might not be thriving to the extent that Jackson and Coldrake actually reveal some numbers for PokerStars, it does show their commitment to the vertical and its evolution. GG Poker has more than demonstrated its commitment. Everyone else will need to continue to innovate to keep up.

AGAINST ALL ODDS

With DraftKings and FanDuel so dominant in any ranking of US market share, several operators have fled but some smaller ones remain. Jessica Welman speaks to Desert Diamond Director LAUREL PITTMAN and PlayStar CMO JON BOWDEN about carving out a niche

Market share is one of those metrics that the industry obsesses over and yet simultaneously insists is not the primary indicator of success. Many gaming pundits decry the “spray and pray” approach as an expensive and not always successful way to acquire customers, even if it can help pad the market share numbers in the short term.

As the US sports betting and online gaming market continues to mature and the geyser of new state launches slows to a trickle, it is true that market share hardly tells the entire story of a brand’s success. Operators are increasingly trying to bring down the cost of acquisition as well as develop an audience of players with high lifetime value, since the spray and prayers inevitably recruited a wave of bonus hunters who hit and ran once the sign-up offer was done.

And yet market share still dominates the conversation. Two operators hold the majority of the national online gambling market share and the top eight operators hold all but around 5 per cent of the pie. The list of operators, large and small, that have thrown in the towel continues to grow, which casts doubt on whether or not small, local players can possibly compete.

The common sentiment may be that the Davids stand no chance against the Goliaths, but the industry is not without its success stories.

ARIZONA IN FOCUS

In Arizona, the list of operators is shrinking by the day, with Betway, Unibet, SaharaBets and Superbook all exiting the state this year. While those brands failed, a local operator continues to post numbers that rival Hard Rock Bet and BetRivers.

During February, a busy month for sports bettors, Desert Diamond sportsbooks ranked seventh of the 17 operators in the state with not quite 1 per cent of total handle. It may sound like a small amount, but it trounced competition from national brands such as Bally Bet, the now-shuttered WynnBet, and ambitious UK operator Betfred.

It is also worth noting that those numbers only account for mobile wagering and not the betting done at Desert Diamond retail sportsbooks, which are not required to report revenues to the Arizona Division of Gaming.

If you have the ability to do this yourself, if you have the ability to keep your licence and operate this yourself, you have to do it

Desert Diamond’s Director of Sports Betting Laurel Pittman thinks some of the brand’s success came, in part, because there were so many competitors in the space.

“When you had what we had in Arizona, with so many operators going live at the same time, it could be, especially if you’re a new sports bettor, a little overwhelming,” she observes.

Desert Diamond offered a “sense of comfort and familiarity”. Founded in 1993, the casino brand has been a known entity in the state for some time. With a wave of new apps that seemed no different than the ones offered in neighbouring Nevada, Pittman notes that “there was no local feel” when online betting rolled out in the state in 2021.

Desert Diamond Sportsbook opened on properties in late 2021, then went online at the start of 2022, offering residents a local option. Initially the brand didn’t make much of a dent amid big names spraying and praying for customers with Super Bowl offers. In its first revenue report, the operator took just $100,000 in wagers, a mere 0.02 per cent of the state’s handle that month.

Slowly but surely, the app gained popularity, but it wasn’t purely through onsite activations and brand recognition. The Tohono O’odham Nation knew it understood how to operate tribal retail casinos, but it realised its limitations as a digital operator.

Thus, Desert Diamond Mobile was born. Staffed with a number of experienced

players in the online gaming space, the new company imported the necessary knowledge to compete as the only Arizonaowned and operated online sportsbook. Though the team brought in experience from other brands, they made a point not to copy the big operators and developed a playbook focused on never straying too far from what the Desert Diamond brand is known for.

NICHE IN NEW JERSEY

Similarly, as a late mover in New Jersey, PlayStar saw what the big national brands were doing and decided what to avoid when entering the marketplace two years ago.

“They might have had huge amounts of market share, big actives, huge brand awareness, but it was costing them an absolute fortune to get players in, and the road to profitability was so long,” PlayStar CMO Jon Bowden recalls. “Brand preference was around who shouted the loudest.”

Seeing the marketing and acquisition budgets of some competitors, Bowden and his team asked themselves a fairly straightforward, albeit difficult, question: “Can we give players something they can’t get anywhere else?”

The answer was Star Rewards. The rewards program is essentially a “digital stamp card”, where a range of customers can earn rewards that can be redeemed for things outside of the PlayStar brand. That could be discounts at local stores, free products or even unique experiences at New York Giants and New Jersey Devils games.

This localised rewards program was designed for everyone, but Bowden notes it is especially popular with VIPs. By offering players a chance to use their points on brands they engage with every day, PlayStar managed to build a loyal following and broke into the top 10 New Jersey online casinos based on market share.

It is quite a feat for a company that only came into the most mature online market in the country in 2022, some nine years after the state first allowed iGaming. “I wouldn’t say it’s a surprise because I think we’ve been doing all the right things for a long time now, and we’ve stayed really consistent in our approach,” Bowden says. “But obviously it’s very nice to be ahead of where we thought we’d be around our market share.”

The market share bandied about as PlayStar launched was 5 per cent and Bowden and his team are pleased to be hitting those projections, but it isn’t the only measure of success.

“Success for us is really around us hitting our targets, achieving profitability, and then, from a player perspective, achieving the really high retention rates that we’ve set ourselves.”

Moreover, the PlayStar team is focused less on maintaining numbers and more on continuing the initiatives and service that got it to this position in the first place.

“You focus on the journey, not the destination,” Bowden cautions.

Laurel Pittman, Desert Diamond

When it comes to advice for new entrants, Desert Diamond’s Pittman similarly encourages local operators, particularly tribal operators to think less about an instant fix and more about the long term.

Most tribal operators in Arizona and other states chose to outsource their gaming licences to experienced digital brands. The overhead of developing a new product compared with the revenue that came from market access agreements didn’t seem worth it. Some ended up with big brands like bet365 and Fanatics, but many others partnered with operators that are now out of the market.

“If you have the ability to do this yourself, if you have the ability to keep your licence and operate this yourself, you have to do it, and you have to lean into that brand and the local identity that you’ve already established in the market,” Pittman encourages.

It probably helps to have aspirations beyond just a sportsbook. For example, Desert Diamond hired a team with not just extensive digital sports betting experience but online casino experience as well. While Arizona’s lawmakers are not moving to regulate iGaming yet, Desert Diamond is prepared and ready for when it happens.

PlayStar is also prepared to take its localised success and replicate it in more states. Bowden does not have specific states or launch dates yet, but he thinks the idea of Star Rewards is easily replicated even if some of the more local rewards are not.

For now, they are small-scale success stories but their growing market shares indicate that there are other ways to find success in the States beyond spraying and praying.

THE DEMISE OF THE PRICE SENSITIVE APPROACH?

PlayStar and Desert Diamond are small operators who found an audience with a local approach. While that seems to be resonating, another tactic has been less successful.

Several sportsbooks have attempted to be the app for the price conscious sports bettor. Whether it be an exchange model, lower vig or the promise of no limits, a number of start-up sportsbooks believe that there is enough sharp action to keep the doors open.

So far, the model hasn’t provided much success. Betting exchanges Prophet Exchange and Novig have both shut their regulated sportsbooks and pivoted to a sweepstakes model. SuperBook, still a mecca for Vegas bettors, recently announced its closure in every state but Nevada.

There is still a trio of operators trying to make a go of it in the regulated space. Circa Sports is live in five states while betting exchange Sporttrade is available in three. Sporttrade and another upstart, Prime Sports, also appear to be headed for Arizona in the not too distant future.

Prime Sports is live in Ohio and New Jersey and, in lieu of promos and bonuses, hopes to be a haven for bettors who have been limited by other operators. In Ohio, Prime accepted $47m in handle in its first 10 months of operation, which is a solid number. Revenue though, is a different story. The operator is in the red for nearly $250,000.

Prime Executive Chairman Joe Brennan acknowledged on social media that the Super Bowl was particularly tough for the book. Betting revenue is also a volatile number, but given the struggles of others with a low-hold approach to betting, questions certainly remain about whether a price-sensitive sportsbook can be an earnings-positive one.

Joe Brennan, Prime Sports

10,000 DELEGATES 400 SPEAKERS 400+ EXHIBITORS

You can expect more innovation and growth, and further expansion into new regions

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Stake ambassador and former Argentina footballer Sergio Aguero

BEYOND CRYPTO and INTO LATAM

BRAIS PENA, the Chief Strategy Officer of Stake’s technology arm Easygo, tells SBC Leaders it’s not all about crypto as the operator expands into the regulated markets of Colombia and Peru

Interview by FERNANDO NOODT

The evolution of Latin America’s iGaming market has evolved at such a pace that it seems governed by one rule: no blinking allowed.

With regulatory updates coming thick and fast, new operators emerging and international ones eyeing acquisitions, the eyes of the world are focused on a region full of opportunities.

In such an environment, it is no surprise to see Stake moving quickly to position itself in new markets such as Colombia and Peru, while also targeting Brazilian territory.

However, what might come as more of a surprise is the context to the cryptofocused operator’s expansion. Brais Pena is the Chief Strategy Officer of Stake’s Melbourne-based technology arm Easygo, which also powers Kick. com and Twist Gaming, among other growing brands.

Pena tells us that the evolution of the legal framework in Latin America is key to the execution of Stake’s strategic moves in the region.

BOOTS ON THE GROUND

Last month, the company announced it had obtained a licence to operate a sportsbook and online casino in Peru. While the licence was new, Stake has had a growing presence in the Andean nation for a few years.

“We now have the ability to improve our local footprint thanks to the new regulation promoted by the Ministry of Foreign Trade and Tourism,” Pena explains. Soon after the licence was gained, Stake put “boots on the ground” and launched its localised site Stake.pe.

The company named Jennyfer Escobar as country manager, and will soon open a local office to continue growing its team in Latin America.

“

We have partnerships in Brazil with high-profile organisations like Brazilian football club Juventude and the UFC

This was Stake’s second move in the region after acquiring Betfair’s Colombian licence from Flutter in November 2023.

Pena explains: “We considered Colombia an ideal destination for Stake’s expansion on so many levels. We thought that utilising the country as a base to start our Latin American expansion based on the current local knowledge and local regulations in the area was going to be an edge.”

Stake has multiplied the size of its team in Colombia by five times since arriving late last year. He highlights the huge amount of talent in the country, which he believes a lot of the European companies haven’t tapped into.

“It’s not just about operating a good product in Colombia and creating first-class customer experiences. We’re also committed to contributing positively to the local economy, fostering innovation and delivering exceptional entertainment value,” he says.

INTO BRAZIL

Pena is hopeful that Stake will be able to repeat the formula in Latin America that has turned it into one of the biggest operators in the world.

“We have always focused on creating unique experiences for our customers. They are at the centre of everything we do,” he continues. “Once you are able to have a conversation with customers and get honest feedback, you can improve your products or the way you operate. Our company has that state of mind in our core – from the founders to new employees that joined last week.”

“Community is the key to success and this mindset has helped us find the right audience and create that big community around Stake. If you add the right marketing and the right product to that formula, that is how you get the growth that we have,” states Pena.

The operator is known first and foremost as a crypto casino, which Pena describes as an “up and coming technology” at the time Stake was launched.

“We identified an opportunity to innovate in the industry and do something new and unique. It was a solution to the high barrier to entry that the industry suffers.”

Still, he says it is not all about crypto and highlights Stake’s established presence in regulated markets like Colombia, Italy and Peru with fiat currency.

“As we continue to expand, adapting to the changing needs of our customers and global markets remains a priority,” he adds.

With the company’s arrival in regulated Latin American markets, the question remains whether they want to expand that reach, specifically in what most see as the crown jewel: Brazil.

Stake already has a foothold in the country and has a strong presence there.

“We have partnerships in Brazil with high-profile organisations like [football club] Juventude, and events within UFC,” he emphasises.

The operator is also one of 113 applicants that have already submitted a licence request to the Prizes and Betting Secretariat, which will regulate the industry under the auspices of the Ministry of Finance. With the government insistent that it will sort through all these applications this year, expectation is high.

“You’ll definitely hear from us more in the future,” Pena says as he goes over the company’s plans for South America. “We know that the best is yet to come in Latin America. We have already established a growing presence in Colombia, Peru, and built on strong relations in other countries such as Paraguay and Mexico, amongst others. We have invested in the region but the immense potential for growth and innovation in the whole region motivates us to aim even higher.”

Stake has evolved substantially over the last 12 months and is on course to exponentially grow, not only in Latin America but also in the rest of the world.

The recent acquisition of Idealbet from Octavian Group in Italy is a sign of things to come. Pena assures us that the company “can’t wait to share a few exciting announcements that are in the pipeline over the next few months”.

“You can expect more innovation and growth, and further expansion into new regions,” he enthuses about what’s next for the company in 2025.

With its recent expansion into Colombia and Peru, and its licence application in Brazil, it is safe to assume that, rather sooner than later, Stake is bound to take centre stage in the Latin American gaming landscape.

FROM AFFILIATE ENTHUSIAST TO IGAMING LEADER

Spaniard Brais Pena was a teenage technology whizzkid, who launched a number of affiliate sites before an interest in poker led to him exploring gainful employment in the gambling industry.

He began working as an affiliate manager for European poker skins, which ultimately led him to take roles in marketing, operations and product in companies including Spanish operator Luckia.

From there, he worked for two years at and testing house GLI, before deciding to move to Australia to build his own company. However, the stars aligned as he met Stake’s co-founders Ed Craven and Bijan Tehrani during his first week in Melbourne.

“We immediately connected and they hired me as the fifth employee of the company,” Pena says.

That was almost eight years ago. The Melbourne-based company now employs over 400 people.

LOCAL CHAMPIONS

FACUNDO GIORGI and ANDRÉS CASCANTE of Ondiss tell SBC Leaders how its Casino Magic and BetWarrior brands have come to dominate Argentina and about their expansion plans beyond their home market

Words by LUCIA GANDO

Argentina’s province-byprovince regulatory regime provides operators with some serious compliance challenges. This has led to the rise of a market leading cadre of local operators with a complete understanding of the regulatory landscape and good working relationships with Argentina’s regulators.

Few have done this as successfully as Ondiss, the developer and operator of online casino platforms owned by Argentina’s largest land-based casino chain Casino Club. It operates Casino Club’s online gaming site, as well as Casino Magic Online and the renowned BetWarrior brand.

SBC Leaders speaks to Ondiss General Manager Facundo Giorgi and Commercial Manager Andrés Cascante about their 10-year-plus journey with the company and all the adjustments they’ve had to make as they have developed and expanded the Casino Club empire, with an increasing focus on online gaming and the creation

of Argentina’s first poker network, the Circuito Argentino de Poker (CAP).

THAT’S ENTERTAINMENT

What sets Ondiss apart in the Argentine market? To start with, the company is a pioneer in the development of online casino platforms in Argentina, with a strong commitment to legal and regulated gaming, working closely with regulatory bodies in 11 provinces across the country. The team specialises in providing comprehensive solutions for the operation of online casinos, offering robust and flexible platforms “that allow clients to expand their businesses without limits,” as Giorgi notes.

Since its inception over a decade ago, the company has focused on building a team of experts, not only in online gaming but also in the entertainment industry as a whole, which allows them to create technology that is attractive for its content as well as for its optimal user experience, tailored to market needs.

“At Ondiss, we believe the future of online entertainment is omnichannel and limitless. That’s why we continue to work on offering solutions that allow our clients to bring the physical casino experience to any device, anywhere, anytime,” explains the General Manager, adding that the goal is to provide a premium product offering that ultimately becomes an attractive and innovative offering for customers.

For this reason, one of its key partners is Kambi, which has been integrated into the platform, allowing Ondiss’s partner operators to also present a retail offering in their physical casinos, fulfilling the omnichannel approach.

“We are constantly working to expand our game portfolio. The most recent integration was with Konami, who chose our platform to enter the country. Along with them, we have integrated 17 game providers, offering our clients more than 60 development studios, resulting in a catalogue of over 10,000 titles,” he reveals.

But expansion isn’t just about adding more provider partners, it’s also about broadening the range of gaming verticals.

“This was the case with the creation of Argentina’s first legal poker network, which is now available in eight provinces and is set to continue growing in the coming months,” says Giorgi.

SNAPSHOT OF THE ARGENTINE MARKET

For Ondiss, the Argentine market is characterised by gaming regulation that depends on each province, which presents both challenges and opportunities. The lack of unified national regulation poses a significant challenge in terms of legal compliance, as each province has its own legislation and requirements, but the company’s long experience with retail casinos gives it a grounding with regulators throughout the country.

The company maintains a close relationship with its clients and their particular needs according to each jurisdiction.

“This close collaboration gives us the ability to offer highly specific and

quickly-adapted solutions, ensuring that our partners can operate effectively and in compliance with local laws,” says Giorgi.

Nonetheless, he highlights one of Argentina’s most significant social concerns: illegal gaming. Giorgi says that illicit sites, which do not operate under strict provincial regulations, lack validation and security methods, making them easier for minors to access and putting users at risk. This has been a huge concern for Argentine politicians in recent months.

Giorgi adds: “This contrasts sharply with legal sites operating under the bet.ar internet domain, which offer a safe and regulated experience, protecting both players and the market in general.”

The social demands for the need to regulate the gaming industry, limit advertising, and improve the blocking of illegal sites are issues that Ondiss takes very seriously. That’s why at Ondiss, and across all the group’s brands, they consider corporate responsibility a fundamental pillar.

“We are committed to collaborating with regulatory bodies to protect players, ensure a safe gaming environment, and actively combat illegal gaming. We firmly believe that caring for the industry is essential – not only for the success of our business but also for the sustainability and reputation of the gaming market in Argentina,” states Giorgi.

Among it’s policies are to support and promote measures that strengthen regulation, limit inappropriate advertising, and improve mechanisms for blocking illegal sites. Additionally, the commitment to corporate responsibility is reflected in every aspect of the operation, from platform development to the way they interact with clients and the general public.

LOCAL MARKET TECHNOLOGY

Thanks to constant technological vigilance, attendance at industry events like SBC, shared experiences, and a lot of networking with specialists, Ondiss stays up to date with the latest innovations and products emerging globally in the online gaming industry.

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The future of online entertainment is omnichannel and limitless

“Combined with our knowledge of the local market, we can effectively evaluate the feasibility of implementing new solutions for the client, adapting them to local particularities and needs,” says Cascante.

“Our commitment to technological innovation translates into the creation of online casino platforms that not only meet international standards but are also optimised to offer a superior user experience in the Argentine context,” adds Cascante. “This includes the development of applications and systems that allow players to enjoy a seamless and immersive entertainment experience, regardless of the device they use.”

To improve gameplay in online casinos, Ondiss offers solutions that integrate cutting edge technology, such as intuitive interfaces, high-quality graphics, and advanced features that replicate the excitement of a physical casino in a digital environment. Along with this, the web Back Office provides operators with total control over the management of their online casinos, with tools that allow them to customise the gaming experience, analyse user behaviour, and make data-driven decisions to optimise operations.

For Ondiss, technology is not just a resource but a fundamental pillar that allows them to continue leading the market, committed to continuously improving the gaming experience for clients and their users.

LOOKING TO THE FUTURE

Cascante says the company is aiming to expand into other Latin American markets as a B2B provider, not only with its platform but also with two key products: Betdiss and Paydiss.

After rigorous testing, these solutions allow, with a single integration, access to the best gaming providers in the market and a wide range of payment methods, respectively.

“We are truly excited about the new applications, not only because of the time and effort our entire team has invested in their development but also because of the confidence we’ve gained in them, given how well they’ve performed so far. We firmly believe they will be a great asset to any company looking to stand out in the market with a successful and competitive product,” Cascante concludes.

A CULTURE OF COLLABORATION

Growe Chief Executive Officer ANTON RUBLIEVSKYI sheds light on the company’s people-first approach to strategy and how collaborative leadership has played a role in Growe’s evolution

Company culture has become a major focus for many brands as they seek new ways to retain their teams. Why is company culture such a big focus now?

I deeply believe that culture shapes both the successes and failures of a company. Ambitions, values, approaches, speed, reactions to challenges, adaptability, and decision-making are just a small part of what defines a company’s culture. A company, like a living ecosystem, grows and develops based on its culture.

I firmly know that retaining a team is a matter of culture. Yes, motivation, bonuses, compensation, benefits, and internal services are undoubtedly important. But they fall apart like water against rocks if words do not match actions.

We work in a highly competitive industry, and everyone knows and sees the strengths and weaknesses of their colleagues and competitors. We attract people and make efforts to retain employees, just like our competitors. But we bring our values and culture into our work and routine.

We believe in our team and involve employees in strategic and tactical tasks, relying on their opinions and expertise. We ask the entire company for their input on rebranding and choose our brand name

together, we discuss and define values at all levels. Growe does exactly this, which is why I am greatly inspired by the company’s values: Grow Together, Be Ready for Change, and Drive Results over Process. Our values are a testament to our journey as a company. We truly wanted to embody a culture of teamwork, mutual support, development, flexibility, and loyalty while showing our unique approach to company culture, where our team can flourish.

Culture is the answer to the question of how to retain your people. Mutual trust and investment in talent development are the keys to a healthy culture.

Can you share some specific examples of how Growe’s approaches and initiatives have positively impacted employee retention?

Our company is not called Growe for nothing. This name emerged from discussions with teams within the company, and it defines our approaches and explains our projects. Growth and development are our key initiatives, reflected in our investment in knowledge, manager development, team training, unification, and cross-functional collaborations. Our initiatives aimed at developing culture and learning are present at all levels of the company, and they have organically evolved into Growe University.

Our team has been involved at every step of our journey — including selecting the company name

Growe University is an integrated educational ecosystem designed for the comprehensive development of company employees. This project offers a unique, personalised development pathway, providing access to the best educational resources, training programs, and events. Growe University aims to strengthen team spirit and professional skills, helping employees to achieve career excellence.

One direction of the University is our internal educational program “Let’s Grow,” which was designed to identify and develop future leaders of the company. Based on real-life business scenarios, it equips our team with practical experience to respond to real problems.

Our people-first culture is exemplified through some of our employee engagement initiatives, each designed to contribute to effective and efficient work. Whether it’s internal events for employees, supporting sports clubs, or even our Brand Ambassadorship project, we know that engaged employees are more likely to stay with us for the long term.

What defines a successful leader for you?

Leadership is the ability to convey vision and goals, inspiring the team to unite around them and strive for maximum results, creating something greater than the sum of its parts. If you have the right team, there are no limits

to what you can achieve. I believe that a successful leader is someone who can motivate their team and ensure their commitment to the goals and values you want to represent as a company. This is something I have learned throughout my career and hope to pass on to my team.

Why is it so important for leaders in the iGaming industry to take a collaborative approach to leadership?

It’s absolutely essential! At Growe, our team has been involved at every step of our journey — including selecting the company name from a list of proposed options and concepts. The values and principles we strive for reflect our journey and growth since our inception. However, this doesn’t mean our values have remained unchanged; they have evolved as we have grown.

We have grown from a team of 10 in 2019 to more than 1,000 today. This has been truly remarkable and demonstrates our commitment to reaching new heights. Throughout this rapid growth, I have always ensured that I remain closely connected with our entire team, regardless of where they are based.

Tell us about the One Vision strategic session. What is it, and how does it differ from more traditional company meetings?

Forming strategy is our common task. We form it together and implement it together. Our team members work and live in more

than 40 countries, making it critically important for us to feel and understand each other.

Once a year, we gather together and spend several days actively, both physically (climbing mountains, rafting down wild rivers, and more) and in intellectual exercises. This helps us not only get closer and know each other better but also to switch our bodies and minds before challenging strategic work. One Vision plays a key role in shaping the future of our company, providing a strong foundation for implementing strategic decisions in both Growe’s work processes and corporate life.

What do you envision the biggest challenges for the iGaming industry to be over the next 12 months?

The biggest challenge will be to remain adaptive to changes — whether they are legislative, technological, or commercial. Not a week goes by without a new technology being rolled out or a market changing its regulatory framework. Companies need to ensure that they can not only adapt to these changes but also stay one step ahead to retain their competitive edge.

At Growe, flexibility and adaptability are in our DNA. We are fortunate to have a team with extensive experience in this sector, who understands how important it is to quickly pivot operations in response to changing industry dynamics.

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CLEARING the HURDLES

SBC Leaders sits down with Hub88 Head of Sales NATASHA GIORGIO to discuss the current state of iGaming, and the continuous advancements and challenges that drive and influence our world

What are the key issues facing operators in the iGaming sector?

The iGaming sector faces several significant challenges. One major issue is inconsistent rules and regulations across different regions. In some territories, the legality of gambling is heavily restricted, which naturally makes it difficult for operators to plan long-term strategies or even to comply with the law consistently.

Another challenge is responsible gaming requirements, especially concerning younger audiences who may be turning to other forms of entertainment.

The onboarding process for iGaming platforms is often cumbersome, which can deter new customers. This is where Hub88 comes in. One simple and fast API ensures quick onboarding and rapid deployment of new features, enabling our partners to swiftly adapt to market changes and customer preferences.

There are also increasing concerns about fraud, particularly with the use of cryptocurrencies and other digital payment methods. While these options make transactions easier, they also open the door to potential issues, forcing platforms to implement stricter financial controls that may not be appealing to users.

The HubMarket soothes any anxiety for Hubb88 partners with easy access to the likes of premium payment tools such as Pay.io which combines multiple onramps and a huge array of secure crypto payment methods seamlessly. And their wide range of onramps are constantly updated, designed to simplify our customers’ needs.

How are operators in the iGaming sector managing these challenges?

Operators have primarily relied on technology to navigate many of these issues. Advanced data analytics, AI-driven solutions, and secure payment systems are all being leveraged to improve compliance, enhance user experiences and prevent fraud.

Hub88 goes beyond this to provide a range of services designed to enhance operator performance and player engagement in all markets. HubMarket provides access to sports feeds covering top events through TradeArt, high-quality content placement on strategic sites to boost traffic and brand awareness via Motherlink, and generative AI for rapid content production, including regulatory materials, through Narrativa. These services ensure that operators can find precisely what they need to succeed.

“ Responsible gaming requirements might be turning younger audiences to other forms of entertainment

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“ The iGaming industry has a history of turning obstacles into opportunities for growth

However, not all challenges can be solved by technology alone. Careful market strategies are essential for ensuring the long-term viability of both Hub88 as an aggregator and the health of our partners.

By targeting new markets and jurisdictions, Hub88 has been able to attract new operators who trade specifically in these regions. From holding the only licence to trade Live Casino content in Argentina, to Peru’s Ministry of Foreign Trade and Tourism permitting Hub88 to provide its aggregation platform to the country’s locally-licensed operators, it’s demonstrative of the firm’s commitment to growing in Latin America and providing world class entertainment to players all over the continent.

Is it possible for the iGaming industry to grow without these challenges?

Growth without challenges is rare in any industry. In fact, challenges often serve as catalysts for growth by pushing operators to innovate and adapt. The iGaming industry has a history of turning obstacles into opportunities for growth. To reach and exceed its potential, the sector needs to continue addressing each challenge directly, using them as opportunities to develop new solutions and achieve greater success.

Could you elaborate on some specific challenges that are currently limiting growth in the iGaming sector?

Market competition is another significant challenge. As the iGaming sector grows, more players enter the market, leading to a crowded and competitive landscape that makes it harder for individual operators to differentiate themselves. Hub88’s content is limitlessly customisable to meet the specific needs of each operator, allowing for unique setups and personalised experiences. The slots selection available includes games from top-tier providers, such as Relax, Caleta, Kalamba and more, who are well

known for their imaginative themes and lucrative bonus features. This combination ensures that operators can offer their players a rich and varied gaming experience.

Beyond this, inconsistent regulations are a major hurdle. The legality of gambling varies widely from one country to another, and even within countries, the rules can be ambiguous or frequently changing. This uncertainty makes it hard for operators to plan for the long term and often requires them to constantly adjust their operations. Hub88’s possession of licences in a range of key markets allow us to remain first in line and relevant in newly emerging markets and provide full support and assurance of compliance in markets they’re new to.

What steps can the iGaming industry take to overcome these challenges and continue growing?

Operators need to invest in innovative technologies that help them stay ahead of these challenges. This includes improving security measures, enhancing customer experience through personalisation, and finding new ways to comply with regulations while maintaining flexibility. Building strong partnerships and engaging with regulators, stakeholders, and the community can also help navigate complex legal landscapes. By committing to innovation and adaptability, the iGaming sector can continue to grow and leverage its many potentials.

In conclusion, what would you say about the future of the iGaming industry?

The iGaming industry holds tremendous potential. Despite the challenges, the results achieved over the past decade should inspire operators to commit even more strongly to overcoming these obstacles. With continuous investment in innovation and a strategic approach to problemsolving, the sector can look forward to sustained growth and success.

SPORTS BETTING

ON THE FOLLOWING PAGES

46 Interview: CEO Nathan Dionne of leading Ecuador operator Playgreen

50 Interview: Wplay Legal Chief Iliana Pineda Echeverri

BETS DESTINATION IS EVERYTHING TO EVERYONE

The federal government has announced that 113 applications have been filed by businesses seeking licences to participate in Brazil’s Bets market. But can European operators succeed in Brazil after failing so spectacularly in the US, asks SBC Content Director TED MENMUIR

Only one binding conclusion can be drawn from the fact that 113 licence applications were filed so quickly: the brochure for the Brazil Bets market was sold well before President Lula signed any bill into law.

Plane tickets have been booked, and bags packed eagerly, as Brazil is no hard sell for operators desperate to play in a market with a projected onshore value of $10bn by 2029 (according to H2 Capital Gaming).

2025 will see the global gambling industry’s next major economy come into play. As such, seatbelts should be fastened tightly, as turbulence is expected for those on a one-way ticket to the Bets resort.

Yet, even before its launch, dizzying expectations have already been set for the Bets market. What is clear is that gambling’s B2C and B2B structures desperately require a new destination.

The reality was laid bare by H1 interim results in Europe, which saw most public companies in the gambling sector (B2B and B2C) report continued stagnant results.

Who can blame European public companies for pursuing Brazil as a sunshine destination — an escape from the merciless tightening of saturated European markets hemorrhaging costs and the relentless stranglehold of increasing compliance measures.

Pressure is heightened by investors demanding a presence in Brazil after the spectacular failures witnessed in the US market.

A dominant narrative of H1 was European heavyweights Kindred Group, Evoke, Super Group, Betsson, and Tipico one-by-one announcing their exits from the US. H1 balance sheets were embarrassing for leadership teams, with multi-million dollar losses attributed to failed US strategies.

Leadership teams are hoping Brazil will avoid the pitfalls experienced in the US after it implemented a federal framework to regulate the Bets market.

The law, standards, competition, and conduct of the Bets market will be overseen by the central authority of the Secretariat of Betting and Prizes (SPA) — a dynamic not present in US gambling.

Elsewhere, analysts and investors expect Bets to attract a diverse mix of foreign and domestic operators, laying the groundwork for gambling’s next multi-billion dollar M&A phase.

Even before its launch, investors have been eyeing the value of established Brazilian operators (see cover feature, p.8), which have already secured a foothold in their domestic market.

For tech suppliers, Brazil is the new destination to sell bespoke platforms and systems to operators, where the term “tech localisation” is expected to become a key part of the market’s vernacular.

As 2025 approaches, should gambling view Brazil as its new playground or a place of redemption? Well, like any destination, Bets will be what you make of it. Time will tell who truly read the brochure.

PAID in FULL

PlayGreen has been paying taxes in preparation for Ecuador launching online gambling regulation, explains CEO NATHAN DIONNE, and there are other niche markets in Latin America beyond the promised land of Brazil

Interview by FERNANDO NOODT

Despite many seeing it as a single big target, Latin America contains a number of different markets with their own regulation, or even multiple regulations, in some cases. As such, while many will fail in their efforts to establish themselves in the bigger markets, some will thrive on the many opportunities that are up for grabs, hidden in plain sight.

PlayGreen Founder and CEO Nathan Dionne was smart enough to capitalise on one of these opportunities and has managed to position his company as one of the top operators in Ecuador.

The country is close to establishing its fully regulated market and has set a scheme for businesses to start paying taxes. Still, PlayGreen is way beyond that and has already been contributing to the state and making a name for itself.

“We were one of the first to work with the government and we have been working very closely in collaboration to figure out how we would pay or how they want to get the data delivered,” Dionne tells SBC Leaders. “We want to be early and accurate when it comes to taxes and compliance.”

With that chapter sorted, the company can now focus its efforts on growing locally and that doesn’t seem to be an issue either.

“PlayGreen is everywhere in the country,” according to the CEO.

A partnership with DirecTV and holding the naming rights of the Copa Ecuador, one of the top football tournaments in the country, are helping PlayGreen grow one of the most important assets an operator can hold: trust.

“Particularly in markets like these, it’s all about trust,” Dionne says. “There’s a history of bad actors in our industry, so it’s hard to earn it rightfully.”

Sponsorships have shown the operator is here to stay, but Dionne says there is a right way and a wrong way to go about it.

“Don’t overspend, get creative with your partner, and you will build brand awareness,” explains the PlayGreen boss. “But not just around the brand, also in a way people know they can trust you.”

SMALL IS BEAUTIFUL

With a population of just 18m (compared to Brazil’s 215m), Ecuador is a relatively small market, but Dionne claims “economics per player is similar to Brazil”, despoite Brazil’s 2023 per capita income of over $10,000 over one-and-a-half times Ecuador’s $6,500, according to World Bank statistics.

“There’s a really good culture of sports and sports predictions in Ecuador,” he assures. “They have rabid fans and I think it’s very reasonable for an operator to be doing $60100m in gross transactions per month there.”

PlayGreen aims to become a top two operator in the country by the first quarter of 2025 after all the work it has done this year.

“Our main difference is that we are not looking to other markets,” says Dionne, who he claims success in Ecuador is his key focus right now.

“If you spend more time investing in finding the right partners in the legal and accounting departments, it ends up paying huge dividends,” he adds.

Dionne also takes pride on the technical side of their product and estimates that around

80 per cent of the company is built around engineering. That has helped PlayGreen develop its own proprietary platform and be able to achieve, what Dionne calls, “a velocity of change”.

“In most cases, if you want to change or build something new, you call your platform provider, and they put you in line with everyone else. We just do it,” he explains.

That focus drives their development of a better user experience through innovation using AI and technologies like Anthropic to improve customer support.

“Everyone has a chatbot, but kind of hates it as well,” says Dionne. “It doesn’t really work, and you’re just trying to get to a person.”

However, some people just need to understand something about the platform, like odds, and don’t actually need to take an agent’s time to explain it, continues the CEO. He says AI support can be used to improve the speed of response to a customer query, and not as a cost cutting tool. PlayGreen continues to hire people for its customer support team in Ecuador.

GOOD TIMES FOR A CHANGE

While Ecuador remains the focus, PlayGreen could not avoid the temptation of Brazil’s promised riches. PlayGreen initially planned to become a licensed operator in the newly-regulated market, but Dionne and the team have ultimately traded their desire to operate in Brazil for the more pragmatic route of being a supplier there.

After working as a B2C company for nearly two-and-a-half years in the country, operations will eventually come to an end in 2025. With over 100 companies applying for operator licences in Brazil, the betting wars are coming, and PlayGreen has decided to “become an arms dealer,” as their CEO describes.

“It’s the old adage of: ‘don’t mine for gold, sell shovels’,” he states.

With a crowded market, they wanted to take advantage of the momentum of their product and stand out as a B2B brand, instead of just being one of the bunch: “It’s going to be impossible in Brazil for anyone to innovate with a B2C brand. It’s financially restrictive.”

It’s going to be impossible in Brazil for anyone to innovate in the space as a B2C brand “

Going down the road, the company “will work as a provider in two buckets,” Dionne says, dividing the business between selling its full platform to operators on one end, and modules such as affiliate platforms or proprietary casino games, on the other.

“Expect to see companies launching under their own banner all the experiences we built with our market experience,” he proclaims.

With such a large number of competitors, PlayGreen’s founder explains companies will not only be doing upfront payments of six or seven million dollars at some point, but also pushing big budgets in marketing.

“I don’t want to participate in that,” he says. “We made the decision to transition from B2C to B2B decisively early.”

He highlights the potential of its modular sales, particularly the affiliate platform.

“Affiliates… huge part of Brazil,” he states before describing the proprietary platform

the company built because it didn’t like what was already in the market. “We are seeing a lot of success selling it,” he assures us.

The decision to drop out of the operating lane was a tough pill to swallow for the company leadership, but the CEO explains both the team and its investors were really supportive when they switched and everyone is excited to watch the market develop from their renewed point of view.

With Ecuador as its main focus as an operator, Dionne says PlayGreen will continue to focus on the market where it is strongest. However, he highlights the potential of other similar, small markets as he mentions Uruguay, with potential regulatory changes ahead, and Panama. El Salvador is another step in the roadmap ahead as PlayGreen is expecting to get a licence to operate there.

“We have a B2C roadmap, but we’re gonna stay real hyper-focused where we’re winning today,” he concludes.

by

CHALLENGING THE STATUS QUO

Wplay Legal Director and Compliance Officer ILIANA PINEDA ECHEVERRI on pioneering regulated betting and gaming in Latin America and breaking new ground for women in the industry

Wplay was the first sports betting company to operate in Colombia’s online gaming market, a pioneer of regulated betting and iGaming in Latin America.

The operator set the pace for growth and quickly became one of the most popular brands among the Colombian public. It is a pioneer in many respects – it also boasts a management team that includes several women in C-Level positions, a rarity on the continent.

“The key is continuous investment in innovation and technology to enhance the user experience and offer a secure platform that generates credibility and trust,” says Echeverri. “Prioritising users’ healthy entertainment is key, and that’s why we promote responsible gaming, implementing policies and tools so that users can play safely and in a controlled manner.”

Wplay offers a wide range of products and services, which allows it to attract a broad and diverse customer base. However, from her experience as a

director in the company, what has most driven the brand to achieve its ambitious goals has been the recruitment of highquality talent, “which unites a strong and competent team”.

Echeverri says the recruitment of several women to C-Level positions is no mere coincidence, but a reflection of management’s conscious and sustained diversity efforts. Other female leaders include Marketing Director Ximena Martínez and retail chief Paula Rendón.

“This demonstrates openness and appreciation for diversity in the selection processes for C-Level positions, and I believe this is because we are very clear that the diversity of perspectives and experiences contributes to greater creativity and innovation, which is vital in such a competitive industry as gaming,” says Echeverri.

She says the company has always prioritised the implementation of policies that promote inclusion and equal opportunities for all employees, regardless of gender.

Words

LUCÍA GANDO

“

The more inclusion and diversity there is, the greater the drive for new ideas and innovations

“I believe the time will come when these policies will be organically understood in a comprehensive manner; that is, from their social, corporate, and ethical relevance,” she reflects. “There has been significant progress in promoting gender equality, just as in the rest of the world. It is encouraging for new generations as we move towards greater representation.”

Some of the policies she highlights include the implementation of mentoring and sponsorship programs for female employees, the creation of women’s networks within the sector, beyond the companies they work for, and the promotion of an inclusive corporate culture.

She would like to see all regulators, operators, and suppliers review their gender policies.

“It would lead to an understanding that greater inclusion and diversity leads to a greater drive for new ideas and innovations, which ultimately has a positive impact on the industry, companies, and society.”

“Wplay is known for its willingness to address the challenges of modernity,” continues Echeverri, “creating more inclusive environments through workplace culture and recognising that promoting equality is a social responsibility that also enhances the company’s reputation.”

“ We organically tend towards socially relevant, corporate, and ethical policies

REPUTATION IS EVERYTHING

In her leadership role, Echeverri has successfully supported the professionalisation of the sector, particularly in the prevention of risks related to Anti-Money Laundering and Counter-Terrorism Financing).

“This is something I greatly value,” she says.

“I have assumed this responsibility as the President of the Online Operators Compliance Officers Committee in Colombia. Supporting the industry’s positioning processes before various international and national government bodies, sharing experiences and learning with the banking sector, and influencing a better perception of the industry by society in general has been very challenging and rewarding. This has been possible thanks to the coordinated efforts and commitment of the industry’s most important associations, such as Fecoljuegos, of which I am a part, Asojuegos, and Cornazar, with whom we work continuously,” she says.

All of the adaptation to new processes and new regulations is done with a view to improving the sustainability of the company and the industry.

“Actively participating in conferences, panels, and public debates at the national and international levels contributes to advancing conversations about the industry’s perspectives and also about women’s leadership. I am very passionate and love to give my best in every project I take on. In this sense, knowing that these efforts can impact the growth, sustainability, and positioning not only of Wplay but of the industry to which I am dedicated is a source of pride for me,” she emphasises.

“This is how Wplay manages to position itself as a legitimate player in an ethical industry that prioritises user safety. At the end of the day, all these factors are crucial in the relationship with regulators and counterparts in general, resulting in tangible benefits such as greater customer loyalty, talent and capital attraction, and better relationships with strategic partners”.

CHALLENGES AHEAD

“At Wplay, we are proud to be a reference in the betting industry, not only for the quality of

our services but also for our firm commitment to transparency, legality, and responsibility. We understand the importance of offering our users a safe and entertaining experience, backed by innovation and the use of advanced technologies,” explains the director.

In this regard, her department ensures the building of trust-based relationships with users and counterparts by integrating the highest ethical standards. “Our success is not only measured in numbers but in the quality and integrity with which we operate,” she states.

And she adds: “After — I confess — having overcome my own prejudices about the sector, I believe it would be very valuable to see more collaborative efforts in safeguarding legal gaming, as it is an issue that involves several interested parties, including the state, of course”.

To achieve this, she believes it is crucial to continue breaking down these prejudices together, inspiring more archaic companies to review their gender stereotypes, such as the immediate association of sports and betting with masculinity, as well as the lack of female representation in leadership positions.

Echeverri also highlights corporate culture as something to be reviewed collectively since “there are still challenges for women to balance their professional and family responsibilities, and this can affect their ability to access senior management positions.”

She would like to invite any women to learn more about the culture of gaming and betting. She considers a fun, young, and vibrant industry that offers great opportunities and real options to gain experience and grow in a way that possibly cannot be found in other sectors.

“This business is so versatile that it allows us to challenge the status quo,” she concludes.

“Of course, this is never easy, but the constant possibility of turning adversity into learning opportunities enables us to pave the way for other new leaders to enter the industry. You shouldn’t be intimidated by the environment. At the end of the day, this is a sector that recognizes and allows talent and quality to shine; but of course, never give up on giving your best effort!”

PLAYER PROTECTION

ON THE FOLLOWING PAGES

55 Column: An industry at war

56 Feature: Can affiliates help responsible gambling?

BAD BLOOD

Player Protection Hub Editor STEVE HOARE has had enough of the gambling industry fighting with itself

Journalists love a fight. Give them a CEO kicking chunks out of a rival and they’ll generally stick it on the front page. However, this journalist is growing tired of the industry’s battles.

Having worked in this industry for nearly two decades, I’ve experienced a few. When I first started writing about gambling, Las Vegas Sands Founder Sheldon Adelson was determined to block the progress of iGaming at all costs.

Then we had the FOBT wars in the UK. For years before Black Friday everyone moaned about PokerStars’ unfair advantage in the US. For years after Black Friday, Caesars and others battled ferociously to keep PokerStars out of the US.

At heart, the squabbles with PokerStars were arguments about the legality of grey markets. The massive growth in regulated markets around the world has largely consigned the phrase ‘grey markets’ to history, as operators prefer the simpler ground of black and white.

Publicly-listed operators such as Entain and Flutter largely withdrew from markets they considered black but put a little asterisk by those they labelled “to be regulated” like, for example, Brazil.

However, the current squabble over sweepstakes gambling feels very much like retreading old ground.

It was only six years ago that the same arguments were raging about insurgent DFS operators DraftKings and FanDuel. Now, those self-same operators are regulated and trying to pull up the drawbridge and outlaw the next generation of insurgent operators.

These new operators argue their product falls under wellestablished state-level legal frameworks that govern social gaming and sweepstakes competitions. And most lawyers will tell you their arguments are a lot more secure than the legal arguments made for DFS competitions.

Furthermore, the reputable sweepstakes and social operators are using the same geolocation, KYC and payments suppliers as the regulated iGaming industry.

That’s the iGaming industry that will scream “protectionism” at retail casinos looking to protect their revenue from online competition. The iGaming industry is trying to use player protection arguments to disguise its own protectionism against the next generation of innovative gambling products.

Of course, sweepstakes laws were not drafted for competitions that look like slot machines. At some stage, there might be some new form of regulation. In the meantime, all this internecine bickering does the gambling industry no good at all.

Lawmakers can’t stand an industry that presents a disunited front - they just want to be advised of the best way forward.

Meanwhile, in the UK the battles that have raged for most of the past decade continue to be waged. Gambling entrepreneur Derek Webb could argue that he has been highly effective in curbing the gambling industry’s worst excesses but his influence can no longer be argued as constructive.

Squabbles over the funding of treatment could be described as ironic given the fact that those most harmed by this fight will be those suffering from gambling harm. Clearly, the word ‘ironic’ does this attack no justice – it’s shameful.

here for more from Player Protection Hub

WHO IS RESPONSIBLE FOR SOCIAL RESPONSIBILITY?

Leading affiliates from around the world met on the Affiliate Leaders digital day to discuss whether affiliates should be responsible for safe play and how they strike a balance between driving traffic to sites and educating customers about safe play

Words by STEVE HOARE

Debbie Kooy, Applied Digital Media

Tom Galanis, the CEO of UK-based affiliate organisation TAG Media, is as vexed by the ongoing encroachment of regulation as any operator.

“Regulation in the UK, Sweden and Germany diminishes margin and prevents clever, responsible marketing,” says Galanis. “Because the margin is being squeezed, there’s a risk of a race to the bottom.”

The natural end point of this squeeze on affiliates’ margins is to push them towards marketing the black market operators, which offer them a better deal.

Advertising has been in the firing line for at least six months in markets around the world, as politicians and regulators react to media and public pressure to “do something” about a perceived saturation of gambling advertising on our TV screens.

In some markets – the Netherlands, Germany and Italy – the response has been to ban gambling advertising. With the exception of Belgium, which also banned affiliates, affiliates have thus far escaped this clampdown but how does the ban affect the affiliate marketeer and is Belgium a harbinger of things to come?

Debbie Kooy is the Head of Business Operations at Applied Digital Media. With particular responsibility for Casino.nl in the Netherlands, she has been working within the restrictions the Dutch government placed on affiliates a year ago.

With no celebrities allowed to endorse gambling products, no bonuses, and marketing activities restricted to over-24-year-olds, she asks: “How do you target over-24s on Google? You can’t.”

“Banning affiliates altogether is quite a tough decision because people want information,” continues Kooy. “They’re looking for answers and this is where we as an affiliate step in. We run content and we feed users information – whether they want to compare or understand how to play – all these things. When you buy a washing machine or whatever, you like to read more about it maybe before committing to buying it. So banning it all together? I think drives people into the black market.”

When you buy a washing machine, you like to read more about it maybe before buying it. So banning it all together? I think drives people into the black market

“ Players do not want to read about addiction. They do not care about it. They want to have fun

Šimon

Galanis agrees: “I think banning affiliation is the textbook example of a regulator shooting itself in the foot. You know, being overwhelmed by public backlash on betting advertising and doing something they think is an obvious thing to do – quite possibly with a massive lack of understanding what an affiliate is and the scope of what affiliation can do. There’s no more clinical way of driving players to an offshore market than by banning regulated brands from working with affiliates.”

SHOULD AFFILIATES BE LICENSED?

The Netherlands example, with the strict reporting affiliates have to submit to the regulator each month, comes close to a licensing model for affiliates. Which begs the question, should affiliates be licensed?

There was a concern among UK affiliates during the consultation process for the UK’s White Paper on gambling that the anti-gambling lobby was going to force through a licensing system for affiliates. The Responsible Affiliates in Gambling (RAIG) group was formed around this time to give affiliates a voice in the consultation and did its job in forestalling the threat of licensing.

Galanis, who was involved in RAIG at this time, says: “There hasn’t really been a market

that has effectively regulated affiliates. Regulation of affiliates in the US is there for a different reason than social responsibility –it’s to ensure that there’s no organised crime, the same logic as with operators.

“But luckily from an affiliate standpoint, our space has been relatively untouched and that’s because actually affiliates are already regulated. There are laws governing direct marketing and advertising that affiliates have to comply with and that sit outside of gambling jurisdiction. But of course, when it comes to gambling law, it is the operator’s duty to ensure the affiliate is compliant with advertising and marketing guidelines.”

At this point, Kooy highlights the Dutch KVA quality mark, which is almost like a halfway house between licensing and not. The Dutch mark has been launched outside of the Netherlands as the Quality Mark for Responsible Affiliates (QMRA) and is gaining popularity in jurisdictions across Europe and in Michigan in the US and Ontario in Canada.

Travis Geiger, the Co-Founder of US affiliate WagerWire, is licensed in around 30 US states. He says: “I’m not here to herald our system. I don’t think it’s working at all, so licensing in that respect hasn’t led to a more responsible environment.”

Vincze, Casino Guru

The US is very different culturally to Europe, he says. When it comes to responsibility –from seat belts to drunk driving to weapons – the responsibility for those things is placed very firmly on the individual rather than the supplier. The same thing is happening with regards to the role of the media, operator and player in the sports betting space.

“I think the operators are building a dangerous culture around gambling,” continues Geiger. “They’re looking at each bet like a lottery ticket. They’re saying take this same game parlay, take this, take that. We have operators doing TV shows that look like state-sponsored TV. The media shares as much responsibility as the operators because they are glorifying the outcomes.”

Into this space, steps Geiger’s company WagerWire acting like the only grown-up in the room.

“We decided the founding principle of our company is that we’re not going to do profit share on losses. We’re going to do flat CPAs because we want to be on the side of the bettor that we’re signing up. We don’t want to sign them up for a sportsbook and then help them lose all their money. It seems a

little messed up to us. So that’s one thing that we’ve done to kind of differentiate ourselves. And it’s excluded us from books like Hard Rock, for example. We don’t do business with them because they only want to do rev share.”

“We try to stay on the side of the bettor because at the end of the day as an affiliate company we’re responsible for the person that we signed up and whatever happens to them afterwards. If they get addicted or if they get themselves in a tough spot and they lose a lot of money – I’m just as responsible for that as FanDuel, DraftKings or BetMGM.”

GETTING CREATIVE

To remain on the side of the bettor, Geiger says that WagerWire has had to get creative in the context of the US sports betting gold rush.

The affiliate is testing and integrating a bet reselling marketplace. This would allow bettors who have placed too much money to get out of their bets. The technology will also allow bettors to view all their action across different operators. Giving players a single view of all their bets is another means of

“ I’m not here to herald our system. I don’t think it’s working at all. I think operators are building a dangerous culture around gambling

Travis Geiger, WagerWire

“ Operators are purely interested in the commodity we have, which is players and revenue

Tom

The concept of being on the side of the bettors has also been fostered by US affiliates such as Casino Guru and CasinoReviews.com, which has just been approved by the Gambling Commission to act as an alternative dispute resolution service for bettors.

For its part, Casino Guru has its own Safety Index and a complaints service. But it is also going further.

“We are trying to influence the rest of the industry to do better, which we do through the projects we have,” says Casino Guru’s Sustainable & Safer Gambling Lead Šimon Vincze.

The Bratislava-based affiliate is trying to build a global self-exclusion system, which is a very hard nut to crack. It also has its Casino Guru Academy, which provides free education for operators to share best practices, to educate them about safer gambling, to educate them about good customer support, handling of complaints and player verification.

“The tactic is mainly focused on the industry – to influence others to then influence the players,”

says Vincze. “This is how you can influence players positively in the sense of safer gambling. Because they do not want to read about addiction. They do not care about it. They want to have fun. They think this kind of stuff is just for the others who are having troubles.”

Galanis applauds this as going above and beyond what is required by operators’ affiliate managers, who treat compliance as a boxticking exercise.

“We run Punters Lounge in the UK, which is the UK’s biggest sports betting community and we’ve talked to operators suggesting that we’d like to hire a full-time psychologist to track player harm on our website and nobody has supported it. They are purely interested in the commodity we have, which is players and revenue,” says Galanis. “We would love to put more into it but given squeezed margins, we can’t justify the cost.”

And there’s the rub. While affiliates are coming up with creative ideas to improve player safety they are faced with both operators and (unwittingly) regulators who are hindering these efforts.

Galanis, TAG Media

MARKETING

POWERED BY

ON THE FOLLOWING PAGES

63 Column: Jessica Welman on athletes as casino ambassadors

64 Interview: IBJR’s Andre Gelfi on Brazilian marketing restrictions

GIVEN A SPORTING CHANCE

Despite concerns about influencer and celebrity marketing, US operators are enlisting a series of athletes as online casino ambassadors, writes SBC Americas Editor JESSICA WELMAN

They say necessity is the mother of invention. In the case of gaming in the US, it certainly seems to be the case when it comes to making the most of celebrities promoting brands.

As jurisdictions like Ontario crack down on athletes promoting sports betting and various states reconsider how much active athletes should be encouraging people to bet, DraftKings decided it was worth it to sign Lebron James to a sponsorship deal where he offered picks on the NFL and steered clear of basketball.

Other operators though are realising there are opportunities off the betting board.

FanDuel has decided it is in the Gronk business and that business extends to all aspects of the brand. Former New England Patriot Rob Gronkowski is eager to establish his brand as something more than a football player too.

The partnership included the launch of a Gronk-branded cornhole game on its skill game product FanDuel Faceoff. At the

start of the year, the partnership rolled out Gronk’s Touchdown Treasures, a Megaways game produced in partnership with games supplier Evolution.

There has been a rush of footballthemed slot machines in addition to Gronk, most notably Aristocrat’s collection of NFLbranded slot games that hit casino floors last September. Aristocrat’s deal with the NFL extends beyond machines and also includes activations in-stadium with teams like the Dallas Cowboys, which it is worth noting, is located in a state without casinos.

The crossover of athletes and casino games is more than just a logo slap or a face on a slot reel.

FanDuel and BetMGM are starting to harness the power of the communities that develop around both streaming and live dealer games. In May, Gronkowski travelled to the FanDuel live dealer studio in New Jersey and sat alongside the dealer at the roulette table.

“It’s me, Gronk,” he assured audiences. “I’m not a clone.”

While players, including influencer Vegas Matt, played the wheel, Gronkowski answered questions from audience members in a three-hour session.

BetMGM put together a similar experience when its New Jersey live dealer studio hosted former New York Jets players Wayne Chrebet and Tony Richardson at the blackjack table for a session

that coincided with the first game of the NFL season.

These sessions not only promote the brand and the live dealer product, but it creates engagement from a segment of players that operators seem to struggle to connect with. Casino games seem like more of a solitary activity than gathering with friends to sweat bets and watch Thursday Night Football.

But operators are starting to see the kinds of community, audience and loyalty a streaming audience can produce. That is why Vegas Matt was part of the FanDuel activation with Gronkowski and why BetMGM trumpeted the signing of arguably the most popular slots streamer in the world, Brian Christopher.

These athletes have dedicated followings of people who love to hear what they have to say. Now operators realise that fans will listen to more than just sports picks, expect more of these local heroes to pop up promoting online casino content in iGaming states.

BEYOND the CALL of DUTY

Words by CHARLIE HORNER

ANDRE GELFI, the President of the Brazilian Institute for Responsible Gaming, outlines the need for responsible marketing in the run-up to and aftermath of the launch of regulated sports betting in Brazil

The excitement is building for the launch of Brazil’s regulated online gambling market as the clock strikes midnight to usher in the new year celebrations. Much has been written about the long drawn out process to regulate sports betting and iGaming in Brazil throughout the last decade, and there is clearly a huge sense of anticipation for the January 1st launch date.

Yet, bubbling under the surface, there is a heap of nitty gritty work being done to ensure that licensed operators can market their products effectively while navigating challenging and restrictive regulation.

The “Bets” framework, established with the stroke of President Lula’s pen in December 2023, aims to protect minors and vulnerable audiences. One such way of doing this is through imposing marketing regulations.

As such, licensed operators cannot promote “gambling as a solution to financial problems,” or make misleading claims about winning odds. They must also ensure that all ads have 18+ signage on them, and they must be transparent about social media marketing while making provisions for not targeting minors. So far, so normal. But there’s more.

BEYOND REGULATION

Andre Gelfi has emerged as a key figure in the nascent Brazilian sports betting market. Gelfi is Betsson’s Managing Partner in Brazil but also doubles up as the inaugural President of the Brazilian Institute for Responsible Gaming (IBJR).

In his latter role, which he assumed in March 2023 as legislative momentum grew for a regulated market, he leads the institute’s efforts to support a “regulated and sustainable industry” with robust compliance standards.

A part of this effort is promoting responsible marketing across its membership. The institute anticipated a surge in marketing in the run-up to regulation (over 88,000 betting adverts were shown in Brazil last year), so a responsible agenda was crafted.

“We signed an agreement with CONAR –the National Advertising Self-Regulation Council – to regulate marketing in the sports betting sector,” says Gelfi. “This partnership resulted from an Advertising Code previously drawn up by the Institute itself. Among the main guidelines established by the IBJR are protection for minors, specific advertising times, responsible gambling messages and team sponsorships.”

The Institute boasts a membership including some of the world’s biggest gaming operators including Bet365, Entain, Flutter, and Kaizen Gaming, among others, who are advocating for sensible and sustainable measures to protect Brazilian bettors.

That is why the body decided to selfregulate; it is always beneficial to be seen to be doing the right thing. Nevertheless, it is hoped that acting in a responsible way before a regulatory framework is live will ensure the transition is more seamless.

“The Institute has drawn up a good practice guide for companies and partners to make integrity, security, and player protection pillars for betting houses in Brazil,” Gelfi adds.

There are four pillars that underpin the self-regulation structure: truthfulness in advertising, social responsibility, adherence to laws and regulation, and protecting vulnerable audiences.

And through positive discussions and impactful communications, the IBJR successfully saw these principles ingrained in the regulatory framework established by the Ministry of Finance.

“The advertising regulations implemented by the federal government are in line with the Advertising Code previously drawn up by the IBJR and the agreement with Conar,” Gelfi notes. “What is no longer self-regulation has become law and clear rules for all betting houses that decide to operate in Brazil.”

NO SIGN-UP OFFERS

While the Institute has played its role in establishing the regulated framework, there are more stringent measures when it comes to marketing in Brazil. Policymakers have decided to follow in the footsteps of several other jurisdictions across Latin America, North America and Europe in limiting what operators can do to market their products.

One of these measures in Brazil is that operators cannot offer bonuses or inducements to players to incentivise them to sign up for a specific platform. While retention-based inducements will be allowed, operators cannot offer the type of special sign-up offers which are commonplace across global markets.

This poses a challenge for both operators and affiliates, who will have to tailor their materials specifically to the Brazilian market not just for local consumer demands but also for regulatory purposes.

Sign-up offers are a staple of operators’ marketing strategies but this measure will ensure they must innovate when it comes to their advertising.

Other jurisdictions in the Americas have been forced to deal with similar, albeit slightly differing, circumstances.

In Ontario, Canada, while bonuses and inducements are allowed, they strictly cannot be advertised. Consequently, the operator advertising and affiliate models have been upended in the province.

Speaking with SBC earlier this year, Betting Hero Founder Jai Maw outlined that while the measures appear positive from a responsible gambling perspective, they also prohibit the scope of what the firm can do.

“We can’t talk about bonuses, promotions, or any other types of inducements which I think is, at a high level, a good thing,” he says. “However, it becomes challenging when a customer may have a question about a bonus, inducement or the validity of an operator. And there’s very little room for the affiliate to answer those questions to the extent that the customer would like.”

Jai

Betting Hero is an affiliate marketing company in North America that focuses on in-person marketing and Maw notes that the ban on the advertising of bonuses in Ontario provides a much more challenging landscape than US jurisdictions.

“It’s challenging for many operators to work in because they can’t lead with these promotions, bonuses and inducements like they have in the US. We take a strategic partnership approach to all of our client relationships, allowing us to help inform product and marketing strategies while delivering the best possible experiences to the end user.”

LOFTY AMBITIONS

Maw’s insights can offer a glimpse into what difficulties both operators and affiliates may face in Brazil next year when the regulated market comes into full force.

But given Gelfi’s comments and the Institute’s actions in enacting self-regulation over the

“ It’s challenging for many operators because they can’t lead with promotions, bonuses and inducements like in the US

last 18 months, it is a near certainty that most operators will find a compliant way to promote their platforms as they enter the regulated market.

Aware of the operator’s responsibility to protect players, Gelfi notes that the Institute will play a key role in ensuring advertising and operational standards are of the highest quality as all stakeholders strive to meet the ambitious expectations for the market.

“IBJR acts as a central point of support for the betting market,” Gelfi explains. “Based on the knowledge of member companies and members, we clarify best practices for betting houses and players. To this end, the use of clear rules is important for any sector.”

“In the case of betting,” he concludes, “the regularisation implemented by the Brazilian Ministry of Finance and the Secretariat of Prizes and Betting was more than important, it was essential for the start of a regulated, legal, and safe market.”

Maw, Betting Hero

PAYMENTS

NEW FRONTIERS BRING NEW PAYMENTS CHALLENGES

Pix may be the dominant force in Brazil, but those with wider ambitions in Latin America need to be prepared for the growth of digital currencies, writes Payment Expert Editor TED ORME-CLAYE

In a continent as diverse in nations, cultures and economies as Latin America, betting operators need a strong understanding of local market conditions to thrive. Operators have myriad factors to consider, including regulatory frameworks, technological and financial foundations, and customer preferences.

The first factor to consider is the ever-evolving digital landscape. Latin America is an extremely varied region when it comes to the make-up of its various economies, and how consumers across its various borders spend their money.

In Brazil, there is one word operators need to familiarise themselves with - Pix. Managed by the Central Bank of Brazil, Pix stands out as one of the biggest success stories in global finance.

In the four years since its launch in, Pix has overtaken debit and credit cards as Brazil’s most popular payment method and counts tens of millions of users. As one operator told Payment Expert earlier this year, “the level of familiarity with that payment method is sky high”.

This makes Brazil unique as one of the world’s most rapidly digitised payments ecosystems. Operators in Brazil will be required to use Pix as a payment method, not just due to consumer preference, but also because its use is mandated in the government’s regulation.

The bottom line is, if you want to accept payments, build your brand and customer base in Brazil, you will need to Pix.

Digitalisation has similarly taken hold in other prominent markets such as Argentina and Colombia, where digital wallets are increasingly becoming the norm.

Other countries do not share this level of digitalisation. A one-sizeall-approach will not accomplish anything. Compare Brazil with Peru, for example – the former is one of the best examples of digital payments, while the latter is much more traditional.

Peruvian betting – until recently – has been largely dominated by retail. Operators looking at this market should be prepared for a very different scenario to Brazil, one where large volumes of smaller cash transactions still play a role.

On the other hand, Peru has recently joined the global wave of online gaming, with new regulations coming into effect. Smartphone penetration and internet access are also rising, and so operators should prepare for a shift in market dynamics over the coming years.

Operators coming to Latin America from established markets in Europe

and North America should be prepared for significant differences in payments preferences.

They may find that Latin American customers are much more receptive to alternative payment methods and digital wallets than in Europe and North America, where the long dominant methods of debit cards and bank transfers remain popular.

In addition, Latin America may prove to be a new frontier for cryptocurrency, although the full potential of this will depend on how regulations of betting and crypto evolve over the coming years. The governments of El Salvador and Argentina are perhaps the most receptive to cryptocurrency.

Latin America is undoubtedly the next prmoised land in global gaming, with the US gold rush now wrapping up and firms looking for new opportunities. These opportunities can be found in spadefuls in Brazil, Colombia, Peru, Chile and Argentina, among others - but operators need to make sure that payments knowledge is on point.

ARGENTINA’S CRYPTO BOOM

When Argentina President JAVIER MILEI announced the removal of tax declarations on cryptocurrencies this summer, it showcased his commitment to a new financial landscape. While Argentines have embraced crypto, are they just reacting to hyperinflation or will digital currencies endure?

Words by CALLUM WILLIAMS

Since President Milei’s election in October 2023, he warned Argentines of “shock therapy” to the country’s economy and he wasn’t wrong, for better or for worse.

The Argentine Peso subsequently declined massively with inflation topping 276 per cent in May.

This has had a major impact on the people of Argentina as they are not only dealing with hyperinflation, but more than 50 per cent live below the poverty line, according to research

by Observatorio de la Deuda Social of the Universidad Católica Argentina.

But Milei’s answer to many of the country’s financial worries revolve around crypto, in particular Bitcoin. The President reaffirmed this belief last June, supporting not just Bitcoin but multiple digital currencies in a bid to modernise its economy. Milei believes that higher adoption rates will bring power back to the private sector and enhance financial inclusion and – so far – he may be right.

“ When it comes to real-life adoption of crypto, Latin America can already make a strong claim to being a global leader

PAYMENTS

That’s because usage rates for crypto have soared, making Argentina one of the leading countries in the world when it comes to usa.

According to Statista, the number of crypto users in the Argentine market is projected to reach 11m by 2025, 24 per cent of its entire population.

But what is the value of holding crypto as opposed to the Argentine Peso, besides shelter from the national currency’s enduring high inflation?

FAVOURING STABLECOINS

Jordan Walker, Co-Founder of Bitcoin Collective, a Bitcoin education and events platform, says: “Bitcoin and crypto adoption isn’t solely down to high inflation but this is a significant factor. The economic conditions don’t just make it difficult for people to save, it also makes basic day-to-day transacting hard as prices can change within a matter of hours.

“We tend to see many emerging market populations with high inflation turn to Bitcoin and stablecoins [a cryptocurrency such as Tether, which is designed to hold a steady value pegged to a currency such as the US dollar or a commodity such as gold], especially to preserve their wealth.

“If anything, it tells us that Argentines are looking for a way to get their wealth out of the Peso and the best current solution, which is easily accessible, are stablecoins and Bitcoin.”

Assessing Argentina’s burgeoning crypto market, Walker pointed out that Argentines have been favouring stablecoins, in particular Tether. Stablecoins have been hailed as crypto’s best answer as a form of payment, but Walker also notes that consumers are willing to store Bitcoin and use Tether, for instance, as a more stable function for any payment needs.

He explains: “Although the US dollar gets criticised for devaluing and losing purchasing power over time, it is stable when you compare it to the Peso.

“Bitcoin is more like a savings account and Tether acts more like a current account. It feels like the priority for a lot of people in Argentina is first to get their value out of the Peso for the short term into a safe haven, then Bitcoin is more for long-term saving as it is still a volatile currency.”

CONTROL AND SPEED

Crypto payments come with myriad positives and negatives. From no attached fees on the benefits side, and the lack of regulation and heightened fraud risk on the downside.

Some gaming companies , such as Yolo Group, have begun to build up crypto infrastructure in Argentina and the rest of the Latin America market. These companies hope to find opportunity in the region’s leading adoption of crypto and desire for innovation.

Yolo Group Head of Cryptocurrency Chris Acworth cites a range of benefits for bettors using crypto payments, while also acknowledging the risks involved.

“I’d say the primary benefits are control and speed,” says Acworth. “When you hold crypto in your own wallet, you truly have control of it in a way that you don’t with fiat currency in a bank. In countries like Argentina where currency controls and inflation are real-life problems, you can’t overstate its importance. Banks are slow and expensive, crypto isn’t.

“The speed of transactions is also a really key one, particularly with online gaming. With crypto, you’ll have your winnings in your custody within seconds. We’ve seen players land huge jackpots worth millions of dollars on Sportsbet.io and Bitcasino.io, and withdraw almost instantly. That’s just not possible with fiat.

“In terms of risk, the primary one is a question of responsibility. With crypto, you are in charge of the security of your wallet. There’s no helpline to call if you lose or forget the private key. It’s the only way to ensure absolute control, but it does mean you need to be careful and form your own security procedures.”

THE QUESTION OF REGULATION

It is important for a gaming group like Yolo to assess the changing economic landscape of the markets it is present in, but it is also essential that it accommodates shifts in consumer preferences by providing appropriate payment methods.

There are, however, barriers that will stop countries like Argentina from fully embracing the full scope of crypto, with the most apparent hurdle being regulation.

Argentina has tried to address this. President Milei’s government has progressed with regulation talks over the past several months and enforced the $100,000 tax cap for registered crypto assets. It is a move which Roberto Silva, President of the National Securities Commission, stated is the first step in an anticipated regulatory crypto bill.

But will Milei’s tenure in office outlive his somewhat radical crypto plans? Acworth believes that come 2027, the next Presidential election will prove pivotal in realising Argentina’s goal of becoming a leader in the sector.

“If Milei’s government is pro-crypto, it is currently more focused on stripping

back [financial] regulation than introducing more [crypto-focused regulation],” he says. “To complicate things further, it wouldn’t be a surprise to see another dramatic political shift when Argentines next go to the polls in 2027. So looking in the mid-to-long term, it’s really hard to predict the regulatory future for crypto. The youth are all for it, so all it needs is time.”

“When it comes to real-life adoption,” he concludes. “I think Latin America can already make a strong claim to being a global leader. I’m not talking about people simply holding or trading crypto, but rather those who use it for genuine use cases.”

Whether you agree with Milei’s crypto utopia or not, it is hard to dispute that he has helped position the country as a destination for some of the sector’s largest companies, such as Binance and Bybit, which have set up shop there.

A question dating back to crypto’s inception remains, however - when will citizens begin to ditch fiat for digital currency, and in Argentina’s case if the Peso begins to rally back, will the country revert back to tradition and forgo potential innovation? Only Milei and the Argentine people hold these answers.

Words by TED ORME-CLAYE

GLOBAL, INSTANT AND 24/7

GLOBAL, INSTANT AND 24/7

Rivalry CEO STEVEN SALZ on crypto’s potential beyond its ability to access grey markets

The finance and gambling industries have considerable overlap, with payments playing a key role in the latter and financial technology becoming more readily adopted by gambling operators. Some operators are even launching their own finance products.

Blockchain technology has made its impact on the betting and gaming sector in a number of ways. Many operators jumped on the non-fungible token (NFT) craze back in 2021 and 2022, although DraftKings recently closed its NFT marketplace. While several operators around the globe accept bets in cryptocurrency, it is rarely accepted in regulated markets.

Earlier this year, Canadian sportsbook Rivalry, which focuses on esports wagering and online casino while also offering traditional sports betting, took gaming’s engagement with crypto and blockchain to a new level. The firm unveiled its native crypto token, Rivalry Token, back in May.

Payments is the core of the online gambling product, certainly for a global operator such as Rivalry, and crypto solves problems that simply can’t be solved by traditional payment methods.

“Going country to country is an ongoing and consistently challenging thing,” says Chief Executive Officer Steven Salz. “The beauty of crypto is that it’s always on. There’s no maintenance windows, it’s 24/7, it’s global, it’s instantaneous.

“Crypto in of itself is a great financial product, and therefore a super functional and great payment product. The token helps with that, where we’ve already got people interested in crypto and the token helps get more people interested.

“If their desire to participate in Rivalry Tokens also onboards them more broadly to the crypto ecosystem, and an increasing percentage of our payments is in crypto versus fiat, that is just a higher customer success experience than using a fiat method, in most use cases.”

UNIQUELY CHALLENGING

Cryptocurrency has been slowly making its way into general public usage since Bitcoin was created back in 2009. The sector has gone from a niche – talked about only in specific fields of tech, finance and investment – to household recognition for many (although this may depend on financial and technological literacy, and importantly, age).

Digital currencies’ potential as both a payment method and as a means of investment is the subject of much debate. The European Central Bank (ECB), for example, has criticised crypto in both aspects, arguing that these digital coins do not fit either.

Some consumers seem to see it differently, however – bettors included. Estimates put the total number of crypto wagers at around a third of global bets, and reports from igaming software suppliers like SOFTSWISS show total crypto betting volume rising year-on-year, albeit somewhat marginally at times.

At the time of going to press, the Rivalry Token had not been fully launched. Instead, the firm’s customers have been engaging with the Token by connecting their digital wallets and earning rewards through on-site activity such as sports bets and casino wagers.

According to the firm’s H1 trading report published in August, engagement with the Token has been very positive. Engagement is one of the main benefits of crypto and digital assets, in Rivalry’s view, adding a new dimension to how bookmakers can interact with customers.

“Gambling has a uniquely challenging relationship with the customer, and operators need to find ways to solve this,” Salz elaborates.

“If you can do that, you will create a network effect and flywheel that benefits you as well. There is something there we can experiment with to move the needle and solve that problem.

“I suspect the potential growth and upside of doing a good job will be disproportionately better for the gambling business than another category.”

ENGAGING GENERATION Z

When it comes to engagement, there is a particular demographic crypto and blockchain speak to more than others – Generation Z and millennials. That is not to say that people outside these demographics are completely excluded from crypto, of course – the original founders of cryptocurrency and blockchain technology are now well into their 40s and 50s.

However, with Generation Z and millennials coming of age in a digital-first era, it is not a stretch to say that they are likely a lot more receptive to digital assets than their older counterparts.

At the Canadian Gaming Summit earlier this year, conference attendees noted that Generation Z is more comfortable with technology than other generations, and will be more inclined to digital forms of payment, including crypto.

Rivalry’s Chief Executive says that around a third of crypto bets were placed by people under-35, making it a good engagement tool for younger customers.

Selling a betting product to younger people always comes with a catch

though – two, in fact. Younger demographics are less affluent and also far more likely to find themselves a cause for concern when it comes to responsible gambling and player protection. Recent laws limiting advertising to over-24s or over-25s are proof positive of this concern among lawmakers.

In Rivalry’s case, the firm is confident in its ability to safely combine betting and crypto products due to its activity in the esports sector. That is not to say that there is a direct correlation between esports fans and crypto asset holders, Salz says, but the firm’s experience in esports has given it a unique understanding of dealing with Generation Z.

“The best practices that we’ve implemented as a result of the work we did in esports – definitely the earlier work that was more focused around it and which did certainly address more of that younger demographic – has allowed us to come into this and not really have to reinvent the wheel,” Salz says.

Companies with a background in engaging Generation Z may find themselves in a better position when engaging with cryptocurrency. This applies both to promoting the product but also ensuring it is done so in a responsible way – experience matters.

REGULATED MARKETS

A final factor operators interested in crypto need to consider is regulation. As it stands, crypto betting in most established markets like those found in North America and Europe is somewhat of a grey area.

Salz observes that the grey markets of South America and Southeast Asia are markets where a lot of engagement with crypto can be found.

In Rivalry’s founding market of Ontario, Salz notes that holders of its token will likely not be able to use it on-site, but it has value as a customer engagement and loyalty function with players earning the token simply by continuing to use the Rivalry platform.

“ Gambling has a uniquely challenging relationship with the customer, and operators need to find ways to solve this

“If you think the Token project is interesting and are based in Ontario, if you think the Token project is going to have value, then for doing nothing other than just continuing to use Rivalry, which you’re already doing, you could just earn the Token,” he explains. “There’s no downside to just at least connecting a wallet and earning it.”

As the landscape in North America and the West changes, however, this picture too could change. Cryptocurrency continues to gain traction in both regions. In North America the crypto industry is actively lobbying for procrypto candidates in the US general election, but we are a long way from crypto being directly accepted by US gaming regulators.

“The crypto ethos of anonymity and opacity, runs counter to the regulated industry’s commitment to KYC and transparency,” comments US government affairs expert John Pappas of Corridor Consulting.

In the long run, crypto has the potential to address what Salz believes is one of the biggest pain points in gambling – the movement of money.

He concludes: “With crypto being such a high success payment method, and in gambling – especially in one of the more challenging areas, grey markets – they are uniquely suited to each other.”

LATAM, COMPLIANCE and CASH

Neosurf Global Chief Executive Officer ANDREA MCGEACHIN looks at the role of payments companies in responsible gambling and how the payments landscape is evolving in Latin America

How has the role of payment companies evolved in supporting gambling operators’ compliance and responsible gaming efforts?

The role of payment companies like Neosurf has grown beyond just ensuring transaction efficiency and security. We now play a vital role in supporting responsible gaming and regulatory compliance. Our responsibilities have expanded to include advanced verification processes that ensure funds are used lawfully while promoting tools to help players manage their spending.

Products like our Wager Wallet and Gamers Wallet exemplify our commitment. The Wager Wallet, launching in the US, Ontario, Brazil, and the UK, allows users to allocate funds specifically for gambling, encouraging responsible spending. By working closely with regulators, we help create a safer betting

environment, enhancing the integrity and sustainability of the industry.

Your team has recently upgraded the KYC Handshake to the Neosurf Compliance Handshake. What advancements does this new product offer?

The Neosurf Compliance Handshake significantly advances KYC processes with enhanced data sharing and security. As a high-risk payment company, we’ve focused on supporting gambling operators’ compliance teams. For instance, in Ontario, vouchers must be transacted via an ID-verified wallet before being used on gambling sites. In the US and UK, we share affordability data with operators, streamlining identity verification while safeguarding sensitive information. This tool not only strengthens AML compliance but also ensures secure, responsible transactions.

“ In regions like Brazil, we

work with local regulators to develop responsible gaming frameworks that align with cultural and economic realities

Responsible gaming is a critical focus for the industry today. How does Neosurf’s approach to data sharing contribute to a safer gambling environment?

Neosurf’s data-sharing approach is pivotal, especially in emerging markets like Latin America. We prioritise transparency and compliance to keep players within legal, safe gambling environments, avoiding the risks of the illegal market. By enabling operators to monitor player activity and spending, we help them identify and address potential issues early. In regions like Brazil, we work with local regulators to develop responsible gaming frameworks that align with cultural and economic realities, enhancing player protection through secure data exchanges and promoting healthier gaming practices.

There’s a growing narrative that cash is becoming obsolete and that vouchers, particularly in gambling, are either banned or considered too risky. How do you see the future of cash-based payments in the sector?

Cash remains vital in the gambling sector. In Western Europe, over 57 per cent of retail transactions are still cash-based, and our research indicates that 22-45 per cent of players prefer cash. This is especially true in Latin America. Our approach ensures these transactions are handled safely and transparently. The Compliance Handshake is crucial in maintaining this, allowing us to integrate cash into the online gambling ecosystem responsibly, ensuring it remains a viable option as we expand in Latin America.

You’ve mentioned the importance of collective responsibility among payment providers in the gambling industry. How does Neosurf collaborate with stakeholders to ensure a sustainable gaming ecosystem?

A sustainable gaming ecosystem requires collaboration across the

board. At Neosurf, we engage continuously with operators, regulators, and other stakeholders to support responsible gaming and compliance. In the US and other markets, we maintain dialogue with regulators, sharing insights and research to refine our services. Our recent work in Ontario and the Netherlands highlights our proactive approach to meeting regulatory standards, although gaining buy-in from operators’ compliance teams can be challenging. Our upgraded Compliance Handshake is designed to facilitate this collaboration, enhancing support and understanding.

Affordability checks have become a hot topic, particularly in the UK. How does Neosurf’s partnership with Do-Trust enhance affordability data sharing, and what benefits does this integration bring to operators?

Our partnership with Do-Trust enhances affordability data sharing, providing operators with critical insights into players’ financial capacities, thereby promoting responsible gambling. Initially focused on the UK, this integration offers real-time affordability assessments, enabling operators to proactively identify and address player vulnerabilities. This partnership exemplifies Neosurf’s commitment to combining technology with responsible gaming efforts, ensuring all stakeholders contribute to a sustainable gambling ecosystem.

Can you share insights on the decision science team at Neosurf?

The decision science team provides critical support through monitoring and analytical services that enhance compliance and reduce fraud. Utilising advanced data analytics and machine learning, they identify transaction patterns and anomalies, enabling real-time risk assessments. These insights help operators detect potential fraud early and develop

tailored compliance strategies, bolstering security and fostering a safer, more accountable gambling environment.

The regulatory landscape is constantly evolving. How does Neosurf stay ahead of these changes?

Neosurf continuously monitors developments across our markets and engages with regulatory bodies. We participate in industry discussions and analyse emerging trends to quickly adapt to new requirements. Future enhancements to the Compliance Handshake include integrating AI to streamline compliance processes, enabling real-time updates on regulatory changes, and enhancing data-sharing capabilities to provide richer insights. These advancements will ensure Neosurf continues to support operators globally with the highest standards of compliance.

Looking forward, what do you see as the biggest challenges and opportunities for payment companies in the gambling industry?

The biggest challenges include navigating complex regulatory frameworks, ensuring security against rising cyber threats, and adapting to the diverse needs of players across different markets. The rise of digital currencies and alternative payment methods presents both challenges and opportunities for innovation. Neosurf is addressing these challenges by investing in advanced technology to enhance security and compliance processes. We remain focused on delivering safe and transparent cash, voucher, and digital wallet services, even in markets where cash is believed to be declining. By building agile solutions that adapt to regulatory changes and market demands, we aim to lead in providing secure, compliant, and user-friendly payment options in the evolving gambling landscape.

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Final word with Rasmus Sojmark

The famed statistician Nate Silver has been busy on our screens lately because of his skill in modelling US elections, but he’s also recently published a book entitled “On the Edge: The Art of Risking Everything”.

Appropriately for this issue, the first chapter of the new book opens by describing the Seminole Hard Rock Hotel & Casino in Hollywood, Florida. This is of course, hopefully, the very venue where you are holding this magazine while attending our SBC Summit Latinoamerica!

As with many statisticians, Nate Silver is an impressive poker player (finishing 87th in the 2023 World Series of Poker event with 10,000 entries) so he’s very familiar with the Hard Rock Casino and our industry in general. He even uses gambling terms to classify certain approaches to life.

Silver says he lives in ‘The River’ - a place for people who are ‘very analytical but also highly competitive’. Unsurprisingly this is an area where the majority of the gambling industry sits and thrives. Other River dwellers according to Silver are people in Silicon Valley, Wall Street, and the crypto community.

The River though has a natural opposite, which in the past has controlled the flow of the River but may be struggling to do so these days. This is ‘The Village’ - a risk-averse community that leans left politically. In fact Silver brands it as the liberal establishmentHarvard and the New York Times; academia, media and government.

It is also where a number of key stakeholders in gambling still reside. Our regulators are firmly in the risk-averse Village as they take their lead from government. A lot of the world’s payment and banking structures are firmly ensconced in the Village, partly why so many River-dwellers find themselves turning to crypto solutions, although fortunately there are enough willing to come close enough to the bank of the River to enable business to continue.

We are also dependent on the media to reach our audience, via advertising or affiliation, but are wary of its ability to influence political decisions by the government. Although there are still some, possibly too many, members of the River who will continue doing what they do regardless of the influence of the Village.

In the real world, the risk-takers and the risk-averse need to live with each other. The River needs the Village in order to make sure there isn’t anarchy. The Village needs the risk takers in The River in order to drive progress. Where this works best is when the members of both communities understand and respect the motivations of the other.

This is why we encourage dialogue with all communities at our SBC Summits. The shared knowledge of how the whole system works can only help us carry out our individual roles within our communities much more efficiently and effectively. We want to help you find your way around the River and the Village for a successful and sustainable gambling industry.

Stay cool, Rasmus Sojmark, Founder & CEO, SBC