Industry experts have warned legislators in Latin America that overly restrictive regulations will push players towards the illegal gaming market.
Speaking on the latest SBC Webinar focused on how to navigate the Latin American landscape, German Felipe Sarmiento Jaramillo, CEO of Mexbet, said: “Restrictions in the regulated markets promote on a bigger scale the black market.
“The customer is willing to find any kind of entertainment and if they are not getting that from the regulated operators then they are going to see this entertainment in other bookmakers that are probably not part of the regulated market.
“Putting blocks and trying to make a lot of restrictions makes it difficult to get the right approach and also increases the potential of this industry in every single country. I’m a believer that gambling is not only gambling, but it is a way of entertainment and the more blocks we face, the more restrictions there are and it is more difficult to give opportunities to customers and players.”
Cristhian Gomez, Head of Latam at Growe, agreed with the sentiment and added that practices such as limiting the number of gaming licences, as is the case in some Argentinian provinces, not only promote the black market but also prevent foreign investment and limit the amount of tax that a country can collect from the gaming industry.
Gomez continued that there is a “disconnection between the entities who make the law and the operators in their daily activity”. This must be fixed to help rectify the situation.
He said: “You definitely have to make a connection between the government, the operators and the customers. Only when the three of them are talking three ways and everybody understands each other’s position, you’ll be able to create an industry in each country that will make everybody grow.”
Also on the agenda during the hour-long discussion, which focused on opportunities in Mexico, Colombia, Argentina and Peru, was the need for localisation across the countries due to varying player preferences.
You can watch the full webinar by clicking here.
