Kambi director says Brazil betting ban erodes investor confidence

Mateo Lenoble, a director at Kambi, said Brazil's ban on online betting has damaged investor confidence in the local gaming market and created legal uncertainty, in comments to iGaming Business. Lenoble said a resumption of operations would not remove the uncertainty created by the prohibition.

Lenoble said banning regulated betting would not stop players from placing bets, and that they would instead use offshore operators. He said this would strengthen the black market and weaken the authorities' ability to control sports and prevent match-fixing, and that play with unlicensed operators increases the risk of gambling harm.

Lenoble said the ban affects Kambi, which operates only in regulated markets, and that its Brazil-facing projects have been disrupted. He said companies that operate only in Brazil have been disproportionately affected. While the matter awaits a definitive ruling, the company is standing by its local partners, he said.

Lenoble said Brazil would remain an attractive market if it changes its position, and that Kambi would probably continue to serve it, though he said uncertainty around Brazil is likely to persist for some time even if online gambling is allowed again. He said a legal market is needed to prevent sports-related fraud because it brings betting into the open and provides stronger regulation, and that his team is a member of the International Betting Integrity Association.

The prohibition came less than two years after Brazil legalised online gambling, the report noted. Lenoble said the likely movement of players to unlicensed operators creates risks for the sports industry and for bettors, because offshore companies are subject to only limited oversight from the government and local regulators.