“ The sports betting ecosystem survives on one
fuel , and that fuel is fans ”
JORDAN GNAT , PLAYMAKER
BEYOND THE STATES : CENTRAL AND SOUTH AMERICA
The US and Canada are often the talk of the proverbial town , thanks to ongoing legislation and growth in the sports betting space . But Gnat and Playmaker are looking beyond the obvious to other burgeoning markets in Central and South America .
“ Who are we in that market ?” Gnat asks . “ In Latin America , we are [ the equivalent of ] ESPN . We ’ re the largest digital sports media group in Latin America . If you ’ re in Chile looking for sports media , you go to Redgold . cl . We ’ re number one in Chile for sports media . In countries like Brazil and Argentina , our Bolavip brand is just massive .”
Bolavip serves as a massive news funnel , making it “ the voice of football ” in Latin America . And beyond the prominent number one – football – basketball is incredibly popular south of Mexico .
“ In Mexico , NFL is number two , and we have strong NFL pieces there ,” Gnat says . “ Yardbarker afforded us content that allows us to have even more authenticity surrounding NBA and NFL . We ’ re able to use some of our US content in Latin America and vice versa . And now , we have Bolavip content being syndicated onto Yardbarker . If you want to go after sports fans in Latin America , we are on the list , if not at the top of it .”
The Latin American markets , however , are still in the early stages of regulation .
“ If you asked me when we started this business if our first acquisition would be a Latin America-based , soccer-centric business , I ’ d have said probably not .” Gnat notes . “ But we ’ re opportunistic and we ’ re disciplined .
“ Mexico already allows sports betting ; you can be licensed in connection with a land-based operator .
“ In Brazil , the law passed in December 2018 , and hopefully , regulations will be ready in Q1 of next year . Argentina passed a law in 2018 as well . They ’ ve got licences issued , and we ’ re now hearing that they ’ ll start regulated betting imminently . Then in Chile , recently the legislature looks to be moving forward with regulation .”
In essence : sports betting is coming to Central and South America . The markets in the region are more akin to Canada : grey rather than black . Whereas the US was a black market , no offshore operators allowed , South American bettors have had options , historically .
“ What happens for us is when markets begin formal regulation , more advertising is allowed ,” says Gnat .
That ’ s when Playmaker can make a splash and bring new players to operators in South and Central America .
LOOKING AHEAD
“ We ’ re in the top of the second inning here ,” says Gnat about the US sports betting landscape , implying there ’ s a lot more game left for Playmaker .
“ Look at the US market to start . New York is finally moving , but you don ’ t have California ; you don ’ t have Texas . That ’ s a big chunk of the country ’ s GDP . That chunk isn ’ t even allowed to bet on sports . Once you get those big states , that ’ s when the real business begins .”
Canada ’ s still a way back . Gnat likens the territory to the first inning . “ We ’ re just stepping up to bat ,” he says .
“ Ontario hasn ’ t even started . It ’ s 40 % of the population [ of Canada ], probably 50 % of GDP . So we ’ ll probably move a bit faster in Ontario because it ’ s moving from unregulated to regulated .”
That jump is significantly more accessible than the US journey from fully illegal to regulated .
“ Then in Latin America , lots of opportunity . As we continue to look at our acquisition strategy , we ’ re very focused on these markets ,” he says .
“ Hopefully , in a few years , Playmaker becomes a household name in the investment community , and they understand what we ’ re building is important . From a fan ’ s perspective , we hope our assets become their go-to place for quality sports content .”
Q1 2022 • ISSUE 89 • 45