The prospect of over regulation and too much interference is pushing players towards the black market, where there are no safer gambling guardrails or player protection measures in place. 

That was a clear conclusion from SBC Media’s latest webinar session, ‘Are Latin American Players Actually Safer Today?’ in which several industry experts came together to discuss the state of play on player protection in the region. It featured: 

• Luis Felipe Maia – Founding Partner, MAIA YOSHIYASU ADVAGADOS.
• Simon Westbury – Strategic Advisor, 1xBet.
• Simon Vincze – Head of Sustainable & Safer Gambling, Casino Guru.
• Alfredo Lazcano – Gaming Lawyer, Lazcano Samano.

Is too much regulation denting player protection?

Latin America is at a crossroads when it comes to gambling regulation. A diverse region, it comprises offshore-grey markets, provincially regulated markets and fully federal or national regulatory frameworks. 

But there are some examples of regulation being changed, with proposals in Brazil to ban sponsorship and proposals to raise taxes in both Brazil and Mexico causing concern among operators. 

The panel was unanimous in supporting regulated markets and the expansion of new markets across Latin America, but there are clear warning signs that too much interference causes more harm than good.

Maia shared his experience as an expert in Brazil’s framework, noting: “It’s a curve. You come to the optimum point of protection but once regulation becomes excessive, the players become less protected because channeling is hurt.”

Vincze did acknowledge that over-regulation can be harmful for players, but pushed back on the notion that regulated markets are inherently unsafe environments. 

“It would be inappropriate to speak about regulation in a sense that they wouldn’t be safer, because at least now they have an option which is providing a sufficient framework for safety and it is oversighted by an authority.”

Confusion among Latin American players

The Webinar was hosted alongside 1xBet, which commissioned SBC Media to produce the International Player Safety Index series. Part three of the series was published recently focusing on Latin America and the webinar sessions provided a platform to debate some of its findings.

Simon Westbury, Strategic Advisor at 1xBet, spoke to SBC News recently in-depth on the findings of the report, and he reflected on the lack of consistency across regulation in Latin America. 

It reinforces Westbury’s Three Cs theory: if a market has no clarity, consistency or communication, then a Big C emerges – confusion.

“I think there’s a gap in consistency across Latin America, and we’re not saying that there needs to be a one-size-fits-all approach to player protection because every player is different. But there needs to be player protection enshrined in every regulatory environment.” he noted.

The theory is borne out in practice, too. Vincze had reflected on some research he had undertaken, using Google search analysis in Brazil and Mexico to estimate channelisation rates in those markets.

Following his analysis over a 30 day period, Vincze cited that 74% of specific casino name keywords searches were for offshore sites in Brazil, while that rate is 56% in Mexico. For reference, the UK sits at around 20%, Sweden 21% and Spain 27%.

Vincze noted: “I believe it’s because there is increasingly more exposure on the internet on social media for brands which are not licensed and which can advertise themselves through influencers, through social media, strong accounts, without real enforcement.”

Where can things get better

The good news is that operators have a range of tools at their disposal to help players keep safe on site. KYC measures are the first port of call, but others like deposit limits, time limits and cooling off periods have also been cited as being useful for players globally.

Yet the panel noted that these tools can actually cause more confusion than good, if not applied properly.

Luzcano said: “Safer gambling tools can be difficult to use and operators don’t know how to properly explain how to use them to the players. In the worst case scenario, these tools could be simply ignored by players.”

Maia cited another Brazilian example, where a self-exclusion list has been introduced nationally. But because of a lack of understanding of the purpose, it has resulted in fraud against operators rather than helping players. 

He said: “We don’t see the regulator and the government supporting the regulated market. We had people with social benefits banned from playing, then we had threats to increase taxation in Brazil. What I think is the message that this portrays and the result is that we have the Brazilian authorities driving the players to the illegal market.”

Westbury noted that tools should focus on education and making things fun and engaging, rather than limiting and, in his words, clinical.

“I think sometimes we get it wrong as an industry. Some of these tools are intrusive. No one likes to go to the doctor, no one likes to go to the dentist because of this clinical environment and it’s not enjoyable, generally. I think actually, we need to be at the point of education. Players need to be educated about these tools.”

Watch the whole session and hear the full range of insights and opinions from the panel here.