Speaking at the panel, Ed Birkin, H2 Gambling Capital Managing Director, Eduardo Ludmer, BetMGM Brazil Head of Legal and Pedro Lucas, Super Afiliados Head of Affiliates.
Brazil was marked as one of the most exciting market launches in recent industry history. The jurisdiction had everything going for it; a thriving culture, new players and the potential for innovation that could span across the ecosystem.
However, six months on from the regulated market's launch, how is Brazil doing?
As it turns out, while the industry may have been excited for Brazil to launch, many in the country did not share in this enthusiasm - and a lack of strong direction has not helped with the initial phase of regulation.
Lucas discussed at length about how some politicians in the country are actively trying to stop affiliates from operating in the gambling space.
If this initiative is successful, Lucas believes this could kill the regulated industry and companies in the industry need to unite against this front.
In fact, ‘unite or die’ seemed to be the running theme of this panel.
Ludmer introduced the proposed tax hikes from 12% to 18%, which are expected later this year.
As he explains, “this is not what the market wanted” and it has created an air of uncertainty with such strong changes being introduced only a few months after the regulated market is launched.
Good to know: The Brazilian market is worth $12bn, but 30-50% are still using the illegal market
The licensing changes also muddied the waters; prior to the market launching, companies were told they needed a licence in order to operate. As such, 14 operators acquired permanent licences before the market launched.
On 1 January, operators were told that anyone can launch their business under a temporary licence.
Ludmer continued that this makes gambling a horrible environment to work in. It makes it difficult to plan business moves and everything is reactive as opposed to proactive.
Lucas finished up the panel, emphasising that the entire industry in Brazil needs to unite.
As a united front, they need to educate people about how to use gambling sites, how to reduce potential gambling harm - but they also need to educate politicians and the media, both of which are focused on the negative sides of the industry.
The final thoughts from the panel?
If people only look after themselves in Brazil, then there will only be a very small legal market left at the end of it.
