SOFTSWISS: Unlocking opportunities in Brazil
Business development manager at SOFTSWISS Latin America, Carla Dualib, reflects on the last edition of SBC Summit Rio and which are the challenges and perspectives that the industry faces.
Opinion.- The recent SBC Summit Rio event stirred discussions on critical issues shaping the industry’s future. From regulatory frameworks to cultural localization, attendees delved into the fine points of navigating Latin America’s burgeoning igaming market. The business development manager at SOFTSWISS Latin America, Carla Dualib, analyses the main topics of discussion.
General trends revealed
The SBC Summit Rio shed light on emerging trends that are opening better opportunities in the Brazilian igaming landscape. I covered most of them, like gamification, mobile optimization, and seamless payment services, in my previous columns.
Staying abreast of these trends means prioritising robust Know Your Customer practices. And it is obvious that only with this in mind and practice, operators can position themselves for success in Brazil’s dynamic igaming landscape.
However, I would like to touch upon a new topic that I had an opportunity to explore during my participation at the SBC Summit Rio.
Mergers and acquisitions
As a speaker at the “M&A for New Market Entry” panel discussion, I shared with participants the key considerations for companies looking to leverage mergers and acquisitions. Here are some critical factors to navigate the unique M&A environment:
- More competition: International companies are flooding Brazil’s gaming market, forcing established players to merge or acquire to stay ahead. This helps them grow faster, access new technologies, and offer wider game varieties.
- Legal hurdles: Navigating complex and potentially changing regulations is crucial to ensure a smooth M&A process and avoid legal roadblocks. Companies must understand local gaming regulations and ensure the merged entity adheres to all current and anticipated gaming regulations. Also, legal diligence is required for protecting and transferring ownership of game copyrights, trademarks, and other intellectual property.
- Taxation and Labour: Compliance with Brazilian policies is crucial for both the buyer and seller in an M&A process. Global companies need to factor in potential tax liabilities. Also, stakeholders must ensure the deal complies with Brazilian labour laws regarding employee rights and benefits during and after the merger and acquisition.
- Economic challenges: Brazil’s elevated inflation, high-interest rates, and strict currency controls can make M&A deals less attractive. However, the opening of the financial sector to online gaming could provide easier access to funding and stimulate M&A activity.
By carefully considering these factors, companies can navigate the complexities of the Brazilian M&A landscape and achieve a successful market entry. In general, mergers and acquisitions are going to be the main factor in boosting innovation and growth in the sector.
Business localization
Another hot topic, which is directly sourced from M&A entry, is the importance of cultural adaptation. For an international company to succeed in Brazil, it must fit into the local landscape. It’s not just about regulatory compliance, but also about understanding the behavioural patterns and preferences of Brazilian players.
But even knowledge of some peculiarities, like a long tradition of lotteries among Brazilians, their obsession with football, or their pattern of choosing among various gambling offers, is insufficient. Prepare for ‘tropicalisation’, where entering the market means understanding how things are done, not just who does them.
The best way to adapt to the local mentality, and cultural differences is to collaborate with professionals who know the market well. They can build strong relationships and earn the trust of Brazilians, helping you localize content and adjust marketing strategies. Such collaboration will lay the foundation for solid brand awareness among Brazilian players.
We will look a bit deeper into the mysterious national characteristics and preferences of Brazilians in my next column.
Going beyond Brazil
SBC Summit Rio catalysed dialogue and collaboration, illuminating pathways for global industry players to navigate the complexities of the LatAm igaming market. It also extended the industry’s gaze beyond Brazil’s borders, hinting at opportunities across other countries of the region. Markets like Mexico, Peru, Argentina, and Colombia are poised for significant growth, driven by regulatory changes and increasing demand for gaming and betting activities.
See also: SOFTSWISS and Evolution launch Evo Prime Drop campaign
More insights into the direction of LatAm market development will be revealed at the upcoming SiGMA Americas Summit in São Paulo (23–25 April). SOFTSWISS will participate in the expo, and I’ll be delighted to engage in discussions with anyone visiting the company’s stand.
