FINANCING
Brazil may have attracted a lot of the headlines in recent months, as it finalizes its regulatory framework for sports betting and anticipated casino. The country’s large population and strong interest in sports make it a particularly attractive market for operators. However, the regulatory process has been lengthy and complex, with multiple delays and changes in approach. Other key markets in the region are showing impressive expansion led by Mexico, Peru and Argentina. Regulatory frameworks across LATAM are evolving, with Brazil and Peru playing a pivotal role in shaping the region’s gambling and betting regulation. Some will follow suit like Ecuador and Chile, creating a wave of regulatory development across the region. Mexico is, by far, one of the biggest and more attractive markets and will continue to take shape in the wake of a new government. Investors and operators alike must stay informed about emerging regulations and market entry requirements in order to tackle value creation. This requires ongoing monitoring of regulatory developments, engagement with local stakeholders, and flexibility in adapting to changing requirements. Companies that can navigate these complexities effectively will be well-positioned to capitalize on the region’s growth potential. Conclusion Raising capital in regulated gambling and betting markets is a complex yet rewarding endeavor. The industry’s growth potential is undeniable, but success requires navigating a complex regulatory landscape, addressing operational challenges, and building strong relationships with investors who understand the sector’s unique characteristics. Companies that meet the regulatory challenges, differentiate their offerings, and establish strong investor relationships will position themselves for
long-term success. This requires a comprehensive approach that addresses all aspects of the business, from regulatory compliance and technological innovation to operational efficiency and strategic partnerships. Drawing from personal experience as both a board member and legal advisor, the keys to success include building a strong, experienced leadership team with a deep understanding of the industry and its regulatory requirements. Developing a comprehensive business model and pitch deck that clearly articulates the company’s strategy, market opportunity, and competitive advantages is essential for attracting investor interest. Highlighting differentiating factors such as market access and technology can set a company apart in a crowded field. Companies should emphasize their unique strengths, whether that’s proprietary technology, exclusive licenses, strategic partnerships, or operational excellence. Addressing operational challenges that impact scalability is critical for demonstrating the company’s readiness for growth and ability to deliver returns on investment. Partnering with specialized investors who understand the industry’s nuances can provide not only capital but also valuable guidance, connections, and support. These investors can help companies navigate regulatory complexities, identify growth opportunities, and overcome challenges that might deter more generalist investors. By striking the right balance between risk management and growth potential, companies can thrive in an industry poised for continued global expansion. The gambling and betting sector offers significant opportunities for entrepreneurs and investors who can navigate its complexities and capitalize on its growth potential. With the right approach to capital raising, companies can secure the funding they need to achieve their strategic objectives and build sustainable, successful businesses in this dynamic and evolving industry.
CRISTINA ROMERO DE ALBA Partner, Loyra For more information contact cristina.romero@loyra.com
PAGE 35
IMGL MAGAZINE | JUNE 2025
Made with FlippingBook flipbook maker