Canadian fintech Nuvei has confirmed its ambitions within the Brazilian igaming payments market having agreed to acquire Pay2All Instituição de Pagamento.
It’s an acquisition that enables Nuvei to offer payment experiences within the Brazilian market in a move that will have significant potential for the igaming payment journey within the newly regulated market.
These include accepting payments, managing e-wallets and betting accounts and participating in all of Brazil’s local payment systems, including processing PIX transactions.
Philip Fayer, Nuvei Chair and CEO, commented: “Securing a Payment Institution licence in Brazil has been a top priority, and will mark another significant milestone in our global expansion strategy. The proposed transaction not only strengthens our presence in LATAM but also demonstrates our commitment to providing fully localised and modern payment solutions to businesses in Brazil. We’re excited to offer our full suite of services to help drive growth for the rapidly-growing ecommerce and igaming operators in this dynamic market.”
The importance of a payment institution licence can’t be understated in the Brazilian market, with it being essential to providing transactional services for operators in the region. Nuvei has emphasised that it views not just the Brazilian market, but LatAm as a whole, as a region that holds key potential for expansion.
According to recent projections, revenue in the Brazilian igaming market is set for a trajectory of continued growth once it opens up and regulatory frameworks evolve.
Earlier in the year, Nuvei detailed its commitment to the LatAm market by launching direct local acquiring capabilities in Colombia.
At the heart of that deal was enabling the ability for companies to scale at an accelerated rate, including through expansion into new markets.
Fayer emphasised after this that it “augments our presence in LATAM and reinforces our commitment to growth in the region”.
He added that the group is “already active in more than eleven markets in LATAM through direct integration into local acquirers and networks, and adding direct local acquiring capabilities in Colombia strengthens our ability to provide best-in-class services to our customers across the region”.
Veikkaus Oy has reported a year-over-year dip in gross gaming revenue and operating profit during the first half of 2024 as the Finland gambling market edges closer towards a planned licensing system.
Despite the drop, Veikkaus CFO Regina Sippel has expressed optimism about the operator’s future, noting that the overhaul of the country’s gambling system is a “great chance” for the company and it will continue to invest in business development and customer experience.
For H1, January 2024 to June 2024, Veikkaus Group’s actual sales revenue – GGR and turnover from other business activities – dropped by 6.8% YoY to €483.8m. Operating profit fell by 20.4% to €246.9m while profit dipped by 19.1% as well to €252.3m.
The profit decline occurred due to major investments in the group’s future and the increase in lottery tax on gross gaming revenue, which rose by seven percentage points to 12%, resulting in the company paying €57.6m in lottery tax to the state, €31.7m more than H1 2023.
Veikkaus Oy noted that GGR fell by 7% in H1 in comparison to the same period the previous year to €482.8m.
GGR declined due to “the authentication requirement introduced to the physical point of sales ticket-based games in the spring of 2023 (-21%), the authentication requirement applied to scratchcards since the beginning of 2024 (-44%) and, to a lesser degree, a decrease in consumers’ purchasing power”.
However, the state-owned operator did note that the number of customers has increased by around 15,000 during H1 to 2.54 million registered customers, while the share of the digital channels out of the GGR rose by 6.6 percentage points to 60.5%.
Veikkaus Oy’s operating profit fell by 20.1% YoY to €250.2m while financial profit dropped by 18.8% to €255.6m. The operator’s profit is “returned to the state budget without specifically determined use objects”.
In total, Veikkaus’ return to the state, including the profit and the lottery tax, declined by 8.1% YoY to €313.2m.
Veikkaus’ subsidiary, Fennica Gaming, signed three major client agreements during H1 in Brazil, France and the US state of Virginia. The subsidiary currently has 15 signed agreements, 10 of which were in production on three different continents at the end of H1.
When reflecting on the H1 financials, Sippel has expressed optimism about the future of Veikkaus despite a planned shift incoming for Finland’s gambling market model, which will see the country adopt a licensing system in 2027.
Sippel stated: “During the first half of the year, we implemented Veikkaus’ strategy as planned, investing in both business development and international growth. Fennica Gaming reached significant results during the first half of the year, and the future outlook is bright.
“The upcoming overhaul of the gambling system is a great chance for Veikkaus, and we will continue to invest in business development, and offering the best customer experience.”
In October 2023, Finland’s Ministry of Interior announced a legislative project that will prepare the country for the introduction of a licensing system for gambling, moving away from the monopoly system.
According to the programme, the licence system will cover online casino and online sports betting while stripping state-owned Veikkaus of its current monopoly of the market.
Although the European Gaming and Betting Association showed their support for the change, Finland’s Institute of Health and Welfare expressed concerns over the new licensing model, stating that it could lead to a rise in problem gambling rates in the country.
Luxembourg’s national lottery is set to bolster its online offering on Loteriesport.lu after gaining further igaming content from Greentube.
Under the new deal, the igaming provider has utilised its in-house server-based gaming solution, Greentube Plurius, to integrate online virtual lottery terminal games and sports betting products onto Loteriesport.lu.
The extension builds on the partnership’s previous activation that saw Greentube provide Loterie Nationale Luxembourg with land-based VLT and sports betting terminals last year.
Georg Gubo, COO at Greentube, stated: “Our Greentube Plurius technology is designed to create a unified and engaging experience for players across all platforms. We are excited to see it in action on Loterisport.lu alongside Loterie Nationale Luxembourg and look forward to the full 360 integration later this year.
“Our 360-degree solution is versatile and adaptable to various markets, jurisdictions and customer needs, providing operators with real-time monitoring and accounting tools, game statistics and product usage insights.”
Greentube won a highly-contested tender to become the leading supplier for the state-owned national lottery in Luxembourg back in 2021.
Since gaining the tender, the studio has used its omnichannel solution to offer a variety of products to the nation’s gamblers, both online and in land-based venues.
Léon Losch, CEO at Loterie Nationale Luxembourg, added: “The launch and continued development of Loteriesport.lu is a pivotal moment for us and we are thrilled to be working alongside Greentube in delivering this evolving digital solution.
“Greentube has a strong reputation as a reliable and experienced technology provider with a proven track record in lottery integrations, so we are confident that this partnership will support our customer base and operator partners’ evolving needs.”
Greentube Plurius is set to be completed and taken live as a full 360 solution next year. The studio suggested it will provide Luxembourg’s national lottery with “further product insights” tailored to the nation’s specific player preferences.
