There are several similarities between geolocation verifications in Brazil and the USA. Regulators in both countries require operators to verify that bettors are physically within their borders before placing bets. This includes preventing the use of VPNs to mask locations, detecting 'man-in-the-middle' attacks, and conducting regular location checks during the betting process.
Xpoint provides a crucial geolocation compliance solution for the sports betting and iGaming industries globally. Utilizing the latest geofencing technology and with decades of combined industry experience, they are perfectly positioned to partner with operators in the rapidly growing markets of the USA and Latin America. The company's goal is to revolutionize the global geolocation market, bringing innovation to an industry that, until now, saw geolocation compliance as a utility rather than a new business opportunity.
Bedrosian dives into how Xpoint is transforming the geolocation compliance sector and explores the essential steps operators must take to ensure compliance and capitalize on growth potential in this promising region. The executive shares insights on the similarities between geolocation verifications in Brazil and the USA, the crucial role of experienced providers in a dynamic market, and the future of regulatory landmarks across Latin America.
Games Magazine Brasil - After the recent publication of Ordinance 1.207, what should operators do to prepare to enter the market?
Edward Bedrosian - As one of the last regions to regulate, Brazilian lawmakers were able to learn from more mature markets and understand what works well to maximize economic benefits while ensuring player protection is at the forefront. With this, Brazil outlined stringent location requirements, meaning operators must focus on securing a capable geolocation compliance provider.
This provider must not only meet current regulatory standards but also be agile enough to adapt to future regulatory changes. For example, if Brazilian authorities decide to restrict sports betting operations near schools or other sensitive areas, operators will need a flexible geolocation partner to ensure compliance and avoid being caught off guard by evolving requirements.
What similarities can be drawn between geolocation verifications in Brazil and the USA?
There are several similarities between geolocation verifications in Brazil and the USA. Regulators in both countries require that operators verify that bettors are physically within their borders before placing bets. This includes preventing the use of VPNs to mask locations, detecting "man-in-the-middle" attacks, and conducting regular location checks during the betting process.
The main goal is to ensure compliance with gaming regulations. While the underlying technology and principles of geolocation verifications are similar in both markets, the details of the regulations vary slightly between Brazil and the USA. In Brazil, there is a federal mandate that covers the entire country, while in the USA there is a decentralized system, where each legalized state makes its own decisions.
What role can experienced geolocation providers play in offering guidance to operators in the regulated Brazilian market?
Experienced geolocation providers can play a crucial role in guiding operators in the regulated Brazilian market, ensuring adaptability and compliance as regulations evolve. As the market matures, rules may change, making it essential for operators to partner with providers who can quickly adjust to these new requirements. These providers bring valuable technical expertise, allowing operators to remain compliant, even with unexpected challenges.
As with all markets in their initial phase, regulators may not anticipate all issues from the start, so experienced geolocation providers offer the necessary flexibility to navigate regulatory changes. Their ability to adapt quickly and provide ongoing support ensures that operators can maintain smooth operations in a dynamic environment.
Why do more Latin American countries, like Brazil and Argentina, follow a state-by-state regulatory style, rather than a European-style market regulation?
In countries like Brazil, Argentina, and the USA, states generally have more autonomy compared to European nations. In Europe, countries like France or Spain tend to have more centralized regulatory structures, while in Latin America and the USA, states or provinces have a greater stake in setting their own regulations. This autonomy encourages a state-by-state regulatory approach, allowing local authorities to exercise control over their respective jurisdictions.
What does the future hold for the Brazilian market and Latin America in general? Can we expect more countries in the region to follow suit and provide a regulatory framework?
The future of the Brazilian market and Latin America as a whole is promising, with potential for more countries to establish regulatory frameworks for sports betting and online gaming. Other Latin American countries will likely observe Brazil's regulatory rollout to assess its effectiveness before adopting similar measures.
While it is early to predict that Brazil's success will set the standard for the entire region, its approach will certainly serve as an important reference point. If the Brazilian market matures successfully, it could inspire neighboring countries to create their own regulations, allowing local authorities to control and manage their respective jurisdictions in the constantly evolving gaming sector.
Source: Exclusive GMB
