KTO Group deputy CEO Jeff Tabone has said that taxes in Brazil will continue to be a stumbling block for smaller operators looking to break through in the country.
Brazil’s regulated market, which went live on 1 January, currently carries a tax rate of 12% of gross gaming revenue (GGR), in addition to a controversial 15% tax on player winnings above R$2,824 (£437).
Speaking during Kambi’s Festival of Sportsbook roundtable yesterday, 3 June, Tabone suggested that some operators will struggle to cope with those demands.
“Brazil is pretty well taxed, so I think for some of the smaller operators, continuing to grow and continuing to operate in Brazil will be a challenge,” he said.
“Secondarily, the black market has found a way to stay somewhat relevant in Brazil. I do think Brazil has the infrastructure to battle it, and there has been some willingness to do so, it seems, from the major Brazilian banks and Brazilian government.”
Tabone added that despite initial difficulties, Brazil-based customers have responded well to changes introduced by the regulated market.
He noted: “It’s been a challenging regulation from a technical standpoint. There are a lot of barriers that have been put in front of regulated businesses but, I think overall, it’s actually been quite positive.
“The pros for the customer are obvious, especially when you consider the way the Brazilian market had been barraged with operators with a less than honest approach to customer acquisition in recent years leading to regulation. Brazil from 2022 to 2024 was very much the Wild West.
“While there are barriers for entry, we’ve seen customers adapt. We’re seeing customers go through KYC checks and complete them, and submit all their documentation upon registration. We’re seeing customers adapt, and we’re seeing increased awareness so of the importance of using regulated operators.”
Away from Brazil, when discussing the increasing use of AI in the gambling industry, LiveScore Group CEO Sam Sadi said that speed of movement is key when embracing the technology.
“Our industry is not usually the quickest in embracing new technologies, and we feel like, as a challenger brand, we have the biggest opportunity to be a bit more disruptive and to gain a strategic edge against much bigger, much more well-funded brands in our space,” he explained.
“The big difference to the industry is going to be the speed of the disruption. When you look at examples like the transition to mobile, or the transition even earlier to internet, it happened at a speed that we could comprehend, and we could make the adjustments, and we could make the right investments.
“You could see mobile coming from probably 10 years before it actually did, and you could prepare your teams. AI is emerging probably 20 to 30 times faster. The risk of not riding this wave is much bigger.
“We have a 3% market share in the UK. Previously, I wouldn’t have been able to say we’re going to get 30% market share in three years, but now I can.
“If we get a few things right and the others don’t in this space, you could see a single-digit market share owner coming in and becoming the dominant player in the industry within months.”
Sadi added that the gambling industry is “well past the point of overregulation”, citing Netherlands and Germany as two examples.
LiveScore Bet announced its departure from the Dutch market in November 2024 following the country’s increase in GGR tax from 30.5% to 34.2% starting 1 Jan 2025. It is set to increase to 37.8% from 1 January 2026.
Sadi went on to say that the industry as a whole lacks support from political circles, which is having an adverse effect economically.
He continued: “Unfortunately, our industry as a whole is very difficult to side with politically. Nobody’s going to come out and defend our industry as a creator of jobs or as a benefit to the economy.
“It’s all about highlighting the potential social harms that our products bring. Usually that comes with a level of exaggeration that isn’t backed up with any kind of data – but it creates headlines and gets votes.
“Unfortunately, nobody is held accountable for the economic consequences of their actions.”
The post KTO deputy CEO: “Continuing to operate in Brazil will be a challenge” first appeared on EGR Intel.
Jeff Tabone suggests during Kambi’s Festival of Sportsbook roundtable that the country’s taxes will prove troublesome for smaller brands, while praising the way customers have adapted to the newly regulated market
The post KTO deputy CEO: “Continuing to operate in Brazil will be a challenge” first appeared on EGR Intel.