Watch: Brazil and UAE - driving a new era in gaming regulation
The global gaming industry is undergoing a regulatory transformation, with Brazil at the forefront of one of the most highly anticipated developments in recent years. In the new episode of the Decoding Gaming Law podcast, Dr. Claudio Caruana, General Counsel at GiG, joined Dr. Franklin Cachia, Director at CSB Group, to discuss the legal landscape of gaming. They focused on the significant changes occurring in regulated markets, especially in two of the most promising emerging markets: Brazil and the UAE.
Brazil’s entry into regulated online gaming
Over the past year, Brazil has introduced groundbreaking regulatory changes, making it one of the most talked-about gaming markets. Despite lacking prior regulation, Brazil has long been a dominant force in the gaming industry. Statistics indicate that over 20 percent of global online gambling traffic comes from Brazil, highlighting the country’s enthusiasm for sports betting and casino games. With a population of over 200 million and a growing middle class with high internet penetration, Brazil presents a significant opportunity for operators worldwide.
However, these changes come with challenges, such as high licensing fees and a strict bonus ban, which could affect affiliate marketing strategies. Despite these obstacles, the opportunities remain vast, and industry players are closely watching how the market develops.
According to Dr. Caruana, while Brazil is undoubtedly a large market, factors such as consumer affluence and spending habits will determine the industry’s growth. Although it is still early to fully assess the impact of these regulations, current indicators suggest that Brazil is poised to become a key player in the global gaming landscape.
UAE’s regulatory evolution
The podcast discussed Brazil’s advancements in gaming regulation and highlighted the United Arab Emirates’ newly implemented licensing system, particularly in the free zones of Abu Dhabi. This system enables operators to obtain gaming licenses and operate with greater flexibility. This change reflects a broader trend in which jurisdictions that were previously opposed to gaming are now embracing regulation to generate revenue and enhance player protection.
Compliance and channelisation
Dr. Caruana emphasises that one of the major challenges for regulators is encouraging players to select licensed operators instead of unregulated platforms. This idea, referred to as “channelisation,” measures the proportion of gambling activity within the regulated sector. Governments typically strive for a channelisation rate of 90 percent, however, achieving this goal is often unrealistic due to the continuous presence of black-market operations.
Stay tuned for more captivating content from the industry, including in-depth interviews and exciting events on SiGMA TV. Don’t miss out on the latest insights and discussions shaping the sector’s future!
