“If the Brazilian market opens up, it will be the largest in Latin America with more than 200K games”

You recently talked about how gambling legalization in Brazil would benefit gaming giants such as Scientific Games, Aristocrat and Konami. But what about medium-sized and smaller businesses? What does Brazil have to offer to them?

Other companies would certainly include Latin American suppliers such as Zitro and Ortiz Gaming. They already have a strong presence in Latin America and I would expect them to be significant players in Brazil, too. Also, the game description for the bingo halls seems to fit the definition of a Class II electronic bingo game for U.S. Tribal markets. So any company with this type of product would benefit. Many of these types of games have been placed in Mexico. In terms of suppliers, SciGames, Aristocrat, and IGT have these Class II type games. Also, Everi Holdings, AGS, and Ainsworth also have Class II games. Finally, Zitro and Ortiz Gaming have games that seem to fit the bingo hall game definition as well. All of these suppliers mentioned above should benefit.

Will there be room for new companies?

I’m sure some new local companies will emerge, but the ones listed above will be the primary beneficiaries.

Will gaming giants open offices in Brazil to monitor business activity in the country?

I think if you want to be a major player in the market, ultimately you would want to have a local office. If the market opens up, it would eventually be the largest Latin American gaming market with +200k games. So, it would make sense for suppliers to have their L. America presence in the largest market.

Some senior gambling executives say that their biggest concern is not the law but the implementation of it. What elements does the government have to take into consideration if the bill is approved?

The government will need to ensure that any illegal operations are shut down. Also, the government should take a look at other jurisdictions worldwide to see what regulatory framework is successful and what is not successful. A strong regulatory framework with a reasonable tax rate combined with the effective shut down of any illegal operation would be a recipe for success.

There have been several attempts to legalize gambling in Brazil. What is different this time?

This time I would put the odds at 60/40 in passing vs. not passing. Nothing is ever certain, but there does seem to be some very positive momentum moving in this direction.

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