Market analysis

Luis Gama: Brazil, how much longer?

Luis Gama, international consultant and former Uruguayan regulator.
Reading time 2:01 min

In an analytical column for Yogonet entitled Até cuándo Brasil ('Brazil, how much longer?'), international consultant and former Uruguayan regulator Luis Gama analyzes the situation of the Brazilian gaming market and states that there is currently an atmosphere of legal uncertainty, which causes uneasiness and concern in parts of the market. The following are his thoughts on the matter:

After my time at CGS and having contact with many colleagues linked to the gaming industry in Brazil, I witnessed firsthand the current atmosphere of doubt in the neighboring country.

The delay in the regulation of the law, which was approved four years ago and includes the regulation of sports betting, generates -among other things- uneasiness, concern, and uncertainty.

We do not believe it is appropriate for the State to take so long to approve and apply the regulation, especially since -in general- what takes the longest time of discussion and debate is the approval of the law and not the proceedings that follow.

The comings and goings added to the lack of capacity to carry out and define the regulatory decree, generating a scenario of great instability. Brazil is not moving forward and this means that all the players involved in the industry are losing valuable time, which they will never recover. Every day that passes is a day lost for the neighboring country's market.

I saw evidence of the high professional level and the true commitment of wanting to move forward together, with the aim of pursuing the best scenario for the gaming industry. Professionals who daily demonstrate their spirit of collaboration and generosity, to contribute and help the State definitively solve the issue.

The lack of harmony between the parties involved confirms the reason for so much delay. The rest of the countries in the region are giving clear signs of wanting to move forward and, instead of joining this regional movement, Brazil is adopting a hesitant attitude in the face of an industry in need of urgent measures.

The messages suggest that it will not be resolved before the national elections that will be held on October 2. As we have said many times before, the lack of a State policy in this regard results in total dependence on the political leaders in office. Internally, Brazil is mature and ready to organize the activity in a definitive way. The private sector has worked hard to be in tune with the great challenges, but the current government's lack of definition only generates greater uncertainty.

The industry cannot be held hostage by external factors. From an economic point of view, the time delay has serious consequences. Faced with an extremely worrying reality in the region, with an increase in poverty estimated at 8 million more people for this year, the action to regulate is decisive to carry out -among other issues- direct actions to mitigate a reality that is hitting very hard.

The market is ready. Private stakeholders are concerned and occupied with the issue. Let's bet that common sense will prevail and it will be approved in the short term. Brazil and the region need it.

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