Key Moments:
- Stake’s head of legal and compliance for LatAm, Laura Maria Gomez Betancur, has called for greater regulatory stability as new rules take shape in Brazil and Peru.
- Recent measures, such as Peru’s new 1% consumption tax on bets and Brazil’s provisional tax rate increase from 12% to 18%, have sparked concerns about overregulation and the potential for black market growth.
- Stake has addressed initial challenges with KYC in Brazil’s online market by educating players on the importance and purpose of verification processes.
Shifting Regulatory Landscape in LatAm Gambling
Latin America has become a focal point for the gambling industry, with Brazil and Peru standing out as major emerging markets. The roll-out of new regulations in these countries has generated optimism, but it has also brought about challenges as authorities weigh new taxes and advertising restrictions.
Laura Maria Gomez Betancur, Stake’s LatAm head of legal and compliance, emphasized the region’s need for more predictable regulatory frameworks. While Brazil launched its regulated online market this year and Peru did so the previous year, both nations have already introduced new regulatory measures. Peru recently imposed a 1% consumption tax on bets, and Brazil provisionally raised its tax rate from 12% to 18%, with the possibility of further advertising limitations on the horizon.
Calls for Regulatory Patience and Dialogue
Gomez has advocated for regulators to allow time for markets to mature before making significant changes. She noted the importance of engaging with operators to gain clearer insights and avoid premature amendments that could disrupt the progression of newly regulated markets. She stated, “What we as a company, and I think most companies, want to see is stability,” underlining that regulatory adjustments are normal but should only occur after careful observation and consultation.
Her main concern is the potential negative impact of overregulation, particularly in Brazil, where increased taxes and advertising controls could push operators and players toward unlicensed alternatives.
Gomez pointed to positive steps taken by Mincetur, Peru’s regulator, highlighting constructive dialogue with operators about new taxation policies. She expressed hope for similar engagement with Brazil’s Secretariat of Prizes and Bets, aiming for clarity and compliance in the evolving regulatory environment.
Addressing KYC Challenges in Brazil’s Regulated Market
Brazil’s shift to a licensed online market brought new compliance hurdles, particularly around Know Your Customer (KYC) protocols like facial recognition. Gomez acknowledged that both operators and players initially faced difficulties adapting to these requirements, primarily due to concerns over data protection and understanding the purpose of KYC processes.
Stake responded by prioritizing education, helping customers understand that KYC safeguards their accounts and enables identity verification. Gomez has also focused on internal training at Stake, guiding staff to better communicate these requirements to users.
Outlook for Stake and LatAm Markets
Looking ahead, Gomez remains optimistic about Latin America’s gambling sector despite ongoing regulatory uncertainty. She described LatAm as a promising market with substantial opportunities, stressing the value of building strong relationships with regulators and cultivating a reputable industry presence as regulations continue to take shape.
Recent Regulatory Measures in Brazil and Peru
| Country | Recent Regulatory Development |
|---|---|
| Brazil | Provisional increase in tax rate from 12% to 18%; new advertising restrictions expected |
| Peru | Introduction of a 1% consumption tax on bets |
- Author
Daniel Williams
