The impact of the upcoming FIFA World Cup 2018 on land-based casinos and online gambling was a major topic at the third annual Juegos Miami event, held May 31-June 2. Attendees agreed the World Cup offers Latin American sportsbooks the opportunity to generate new revenue, gain customers and build brand loyalty. However, they acknowledged it could be risky if sportsbooks are overextended. Betting operators said they are investing in technology as a way to offset the risk.
At a panel discussion, Alfonso Jibaja, head of business development in Latin America for sportsbook manager Betgenius, said, “This event is extremely important and comes at a time which is key for the industry that’s growing. The World Cup will promote the different sectors in the industry from service providers to betting houses. There’s a lot to do and not only opportunities but challenges, but we have to take advantage of this opportunity.”
Juan Andres Carreno, president of Asojuegos, the Colombian Association of Gaming Operators, cited a recent match between France and Colombia as an example. France, the underdog, had lost only once in their last 20 matches on home soil. France held a 2-0 lead by the 26th minute mark and was up 2-1 at halftime. Colombia scored twice in the second half, including a penalty kick in the 85th minute to win 3-2. “France was the favorite and Colombia upset them in the last minute and all the betting houses lost because they did not anticipate what would happen. They saw France as superior. In light of Colombia’s involvement in the World Cup, we can see how to moderate the risk. All companies are self-funded and have to determine how much exposure they are going to take,” Carreno said.
He added, “Some of the operators can be in very bad shape because they don’t have the technology support or did not meet the requirements for the operation.” When there’s more action on one side, higher quotas must be set and wagers need to be limited and laid off, he commented.
He said if Germany, France and Brazil win, the betting houses won’t be too exposed. The risk comes when a team with high odds has taken large bets and then wins.
The panelists also discussed how betting companies can work with soccer federations to address the potential of match fixing. However, they noted that was more of a threat at lower levels of competition. Carreno said when alarms were raised in a second division match in Colombia, betting houses closed wagering and reported their concern. Spain has taken steps, but more federations and FIFA need to address the issue, Carreno said.
“I think with the World Cup event we are all learning what can happen, and regulators have to consider implementing new regulations or force controls and consider the exposure that impacts the player. The Colombian regulation system has been making risks lower, but we’re still learning. We will see what happens in the World Cup,” Carreno stated.
