LATIN AMERICAN FOCUS: CHILE BTOBET
Latin America is one of BtoBet’s core markets. How does Chile fit into BtoBet’s overall plans for the region?
Latin America has up until recently been considered as an emerging market, with its growth hampered primarily by the lack of a clear regulatory status across the vast majority of the region. However, LatAm has been slowly transforming itself into a strategically important landscape, especially for those operators seeking new growth opportunities away from the more mature markets which are characterised to a certain degree by over- regulation.
Leaving apart the Colombian reality, which serves as a beacon for regulatory reform for neighbouring countries, today we are assisting to a high expectation regarding the advancement of legislations that will open up opportunities in various countries in the region, such as Brazil and Chile. With particular reference to Chile, different international sports betting operators have already landed in the local market announcing sponsorship agreements with important clubs in Chile’s top flight football division. Tis serves as a clear indication of the direction that the local market is taking.
Furthermore, a bill that was first announced by Chile’s Ministry of Finance in February 2021, but which however was not published until March this year, serves as testimony of the Chilean government’s efforts to ramp up the process to legalise online gambling and betting in the country. Of particular interest is the government’s will to have an objective licensing criteria, thus ruling out a monopoly or bidding process that may in itself limit the local market’s growth and appeal.
For BtoBet Latin America has always been one of our core markets, and as such we are constantly evaluating the region’s evolving scenario, and assisting local and international operators in the best way they could reap the benefits from these opportunities. Chile occupies a high place on our agenda, with the upcoming regulation serving as a strong basis to our increased involvement in the market.
What is the market’s potential?
To properly answer this question, since up until now the player involvement in online betting is limited to offshore sites, one would have to take a closer look at what is taking place in the retail casino industry. During 2021 the country’s casino sector, which comprises of 20 casinos, generated CLP$294.25bn (€0.3bn) in Gross Gaming Revenue. CLP$45.96bn of the total was generated in December. And it’s important to highlight that the local industry was still heavily impacted throughout the past year due to the Covid pandemic.
Not only, but the data published by the Superintendencia de Casinos de Juego (SCJ) indicates a marked improvement in December’s revenue when compared to 2020 levels, and
Dima Reiderman, Chief Operating Officer, BtoBet
“For BtoBet Latin America has always been one of our core markets, and as such we are constantly evaluating the
region’s evolving scenario, and assisting local and
international operators.”
even rising 10 per cent above the monthly total in 2019, before the pandemic hit.
Also according to figures from the Superintendencia de Casinos de Juego, there are more than 900 offshore websites and platforms that allow online gambling to be developed from Chile, generating a market of around US$150m.
Local players have been playing via offshore for years. How can the government ensure that the channelisation rate to legalised sites is high once laws are in place?
Avoiding over-regulation is a key element in this process. Te legislation put forward by the government is already a step in the right direction since avoiding monopolies or bidding processes ensures that players will have a broader portfolio of legal betting options. Te decision is stemming from the fact that the government acknowledges the flexibility required by the development of this new industry.
At the same time the Chilean authorities must take a strong stance with regards to offshore betting and gambling, and take heed to what other jurisdictions have done from this point of view, and understand the close relationship that exists between the channelisation rate and the tax rate which is introduced.
Factors such as the economic impact brought by the pandemic should not result in countries and regulators granting licenses without a deep study and analysis taking place, developing regulations weakened by legal loopholes and rules which are, in the very least, unclear.
Regulations should be about generating a competitive market, player protection, increasing tax collections, having in place strong AML processes, tackling the illegal market, and as a direct result of the latter, increasing the channelisation rate of players towards legal operators.
WIRE / PULSE / INSIGHT / REPORTS P51
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