## Cultivating a Long-Term Sports Wagering Ecosystem in Brazil
Brazil possesses an enormous soccer fan base, making its marketplace a potential contender for one of the largest on the globe. Playtech’s Head of Policy, Francesco Rodano, stresses the significance of operators ensuring a secure and sustainable introduction of the marketplace. He described to iGB how they are navigating the initial challenges of intricate regulations.
Following four years of dedicated effort, the implementation and opening of the Brazilian sports wagering marketplace is anticipated to be realized later this year – sustainability is paramount.
Francesco Rodano, Playtech’s Head of Policy, believes the marketplace holds immense potential. “The unregulated wagering marketplace is vast, and Brazilians’ enthusiasm for sports is high, suggesting its potential to become one of the largest regulated marketplaces worldwide,” he asserted.
Playtech is dedicated to contributing, whether it’s forming strategic alliances or joint ventures with leading operators in local markets, as we have done in Mexico with Caliente and in Colombia with Wplay, or supplying its products and services to local and international licensees of any size.
**Responsible Gaming**
However, new opportunities also present new dangers, and Rodano believes that incorporating sustainability into Brazilian sports betting is vital.
He believes that the market opening will make operators highly prioritize customer protection, aligning with broader industry trends. Sustainable gambling focuses on maintaining a balance between money and gaming, to prevent players from continuing to play after experiencing losses.
Operators now need to not only recognize potential risks but also take action by setting limits to avoid harming players’ mental and financial well-being.
“Even if only a small number of players may be negatively impacted by gambling, it is crucial to identify them early, and it is a moral obligation,” he explained.
“There are numerous ways to interact with at-risk players, ranging from generic emails to individual interviews conducted by safe gambling experts or even psychologists. All operators should be able to activate the most appropriate intervention measures based on each player’s risk level. Playtech has developed top-notch interactive tools that have proven to be invaluable.”
Our AI-driven, customized interventions proved to be 21 times more successful than standard email campaigns in encouraging individuals to engage in responsible gaming habits. This indicates that individuals were more inclined to establish deposit limitations.
Artificial intelligence is revolutionizing the way we perceive gambling. Traditionally, gambling enterprises relied on basic methods to recognize individuals struggling with gambling issues. They examined factors such as the amount of money deposited or wagered, and the duration of gameplay. However, this strategy is not universally effective. At Playtech, they acknowledge that individuals are diverse and exhibit unique behaviors.
“The digital realm of gambling provides us with an abundance of data about individuals that was previously inaccessible,” stated Rodano. “It’s not solely about gambling. We can observe how individuals interact online. For instance, VIP managers might scrutinize someone’s social media activity if they suspect something amiss.”
“Machine learning empowers us to comprehend human behavior. For instance, in 2019, an AI poker bot triumphed over some of the world’s most skilled poker players. The software leveraged AI to grasp how people play and outmaneuver them.”
Playtech is integrating this technology into its safer gambling platform, BetBuddy.
This program aims to pinpoint potential high-risk individuals by examining their actions. It utilizes machine learning algorithms that assess each player’s activities, generating up to 70 behavioral indicators, and comparing them to the behavioral patterns of known risk players, such as those who frequently engage in gambling but ultimately decide to self-exclude or acknowledge experiencing harm.
These algorithms also incorporate “expert rules”, further enhancing the data-driven approach. Importantly, these algorithms are completely transparent. The list of risk markers produced by these algorithms can assist operators in tailoring interventions, an approach that is more effective than conventional generic interactions, Rodano explained.
“We are delighted to discover that our research reveals that 76% of Brazilians support the use of AI by gambling companies to identify potential high-risk individuals.”
Potential Hazards
Playtech recently conducted a tailored consumer survey in four Latin American nations, including Brazil, to comprehend key issues related to responsible gambling in each region. The findings revealed that in Brazil, 56% of respondents indicated they participated in gambling activities, despite the absence of regulation. And, most respondents advocated for more robust local regulations and more information about responsible and sustainable gambling tools.
The survey results suggest that Brazilians are most concerned about losing all their funds due to gambling addiction.
Moreover, there are dangers of deception, game tampering, missed reward payments, privacy violations, and the growing risk of financing illicit activities.
Rodano points out that since the legal marketplace has not yet opened, many local participants are exposed to gambling companies from abroad and tax-free zones, where no consumer protection measures are in place.
Brazil’s ruling legalized athletic wagering, but online gambling remains unregulated. Rodano emphasizes that other forms of gambling should follow this pattern.
Thus, he highlights that the regulatory structure needs to encompass casino games and popular athletic betting forms favored by consumers, otherwise, there is insufficient incentive to transition to the domestic legal sector.
“This is a potential risk factor for Brazil, as Law 846/2018 only regulates sports betting, while casino games (which account for nearly half of global gambling revenue) will remain unlawful in the near future, leaving Brazilian players without legal alternatives.”
Collaboration, not conflict
“We believe that a gambling regulatory framework can only function when the government, players, and the gambling industry all achieve their respective objectives,” Rodano stated.
He added that suppliers play a neutral role.
Weve joined forces with numerous customer-facing businesses. The rivalry among them is intense, but this doesn’t impact our dedication to pouring time and resources into safer gambling exploration and advancement.
We have a twofold obligation. On one side, we aim to create safer, more sustainable gambling solutions. These solutions are based on evidence, thoroughly tested, and concentrate on the well-being of individual players, not broad generalizations about the entire player base, as we are all distinct.
On the other side, we must communicate the potential of this approach to decision-makers and colleagues in the industry.
He stated that for this work to be successful, there needs to be increased cooperation within the sector. Rodano recognized that success for a market isn’t solely about competition that operators need to focus on; it requires a collective effort from the entire gambling sector to thrive.
“Numerous machine learning projects and experiments are being conducted by different operators, but these discoveries are often not shared with others,” he explained. “Safeguarding everyone’s health and enhancing well-being should be a joint, industry-wide endeavor, not a means to gain a potential competitive edge.
“By sharing our triumphs, particularly our setbacks, we can learn together and assist the gambling industry in achieving long-term sustainability.”
Playtech envisions a straightforward route for Brazil’s gaming sector: responsible gaming is just as vital in Brazil as it is in established European markets.
“We’ve been engaging with regulators globally for a considerable time, and many are now implementing regulations regarding behavioral analysis and personalized assistance. The Netherlands, France, Spain, Germany, and Sweden are taking this approach.
“We’re absolutely prepared to collaborate with Brazilian authorities to help establish a secure, sustainable, and enduring legal gambling industry in Brazil.”
Subscribe to the iGaming newsletter.