What did the tour you took through several cities in Brazil consist of and what results did it have for Alea in terms of business?
I visited Brazil because of the need -from a business point of view- for Alea to meet its partners in person. This year, we have grown a lot in Latin America, but, above all, in Brazil. We know the importance of being in contact with our partners and friends there. It is not about going to see them only during trade shows and conferences, but about visiting them all year round.
What tools do local online gaming operators need that Alea can provide?
On the one hand, there are the tools for casinos. In addition, we must consider relevant information about trends, the preferred games and, especially, the experience we bring to such a ‘young’ market that is growing at a crazy pace. We cannot forget that, until a couple of years ago, sports betting dominated the market and the casino vertical represented a small business volume. Nowadays, casino is king. We need people with experience in this sector, and we have them. So, we bring the experience, the reliability of having an easy-to-integrate API and a secure process. In addition, we have more than 150 integrated casino game providers, with their loyalty tools.
Beyond the executive meetings, you surely noticed the effervescence of sports and betting on the streets of Brazil. How to take advantage of the passion of millions of consumers in order to manage technology that allows them to be engaged and kept attracted to a platform?
Right now, sports betting and online casinos are on everyone’s minds. In the days I spent in the Northeast of Brazil, I saw many billboards and banners of betting companies on the streets. Added to this is the advertising madness observed on television during soccer matches and in stadiums, both in World Cup qualifying tournaments and in local league matches. There are between 5 and 8 betting brands visible together at any given time. I believe that this issue has to be managed and regulated in a better way. Is it really useful to have your brand next to others? Does it have an impact? Does the potential customer retain your brand, your competitor’s, or neither of them? Only companies that do things differently seem to be somewhat more successful. In any case, I believe that the biggest opportunity for operators in Brazil is in player retention and loyalty. It is not just a task of acquisition and branding. You have to build loyalty with that customer base so that they don’t go to another platform. There are dozens of tools within the casino and betting, but especially CRM, to achieve this.
How do you see the current regulatory process in Brazil, with advances in sports betting, but leaving aside the legalization of different forms of online gambling? Do you think it expresses a lack of understanding from authorities to the dynamics of the industry? How much will this decision affect the market?
This has been the story of gambling regulation in Brazil in recent months. It’s a roller coaster where one day the online casino wasn’t considered, then it was, and after that it wasn’t again. The same goes for marketing restrictions. I remember that, about 5 years ago, at a local gaming fair, in the meeting room, a congressman confessed to me: “In Brazil, everything is like Samba: one step forward and three steps back.” In any case, if I think about what was said back then in terms of possible regulation and what is supposed to come now, there is no comparison. It’s best to sit and wait, see what happens (if anything happens in mid-2024) and what is finally included or not in the regulation. It is a case of “seeing is believing.” Honestly, it would be very difficult for the sector to leave the online casino out of regulation. It wouldn’t make any sense, given market dynamics and bettors preferences.
What projects does Alea have for Brazil and all LatAm in 2024?
Without a doubt, next year 2024 is going to be a time of tremendous growth for us. We have already been reinforcing many of our areas with people who speak Brazilian Portuguese (since 99% of the company speaks Spanish) to have a good base for what is to come. Not only will we be present at the most important gaming shows in the region, but we will frequently travel to Latin America. I’ll announce it, and you will be able to keep up with me on LinkedIn. Reality is that LatAm already represents half of our daily transactions. We are going to be present in the region because we have many partners there, but many more will be on the way. We want to continue providing quality service to operators, doing everything possible to support them in their growth and development, simplifying the management of their casino thanks to the centralization of the operation and contacts with suppliers. It is clear that Alea is not just an aggregator. We are a very strong technological and strategic partner that does everything in its power to help operators so that they can focus on a single task: to efficiently and successfully managing their online casinos.