The Crown Prosecution Service (CPS) has instructed Entain to exit the major Latin American markets of Mexico, Brazil, Chile and Peru within a year against the risk of losing protections of £600m deferred UK prosecution agreement. This demand has come in lieu of the operator facing briberby allegations related to its former business in Turkey. Having already faced a heavy penalty fine, Entain staved off any potential CPS prosecution as part of a deferred prosecution agreement (DPA). This DPA also stipulated that Entain must: “Entain shall exit all gambling markets in which it is currently operating and which markets are not yet subject to gambling regulation.” The CPS has also specifically defines the specific markets in question, emphasising the industry’s need to consider the implications of the agreement on corporate compliance procedures, warning about potential failings. 

Entain’s response

The operator has asserted that it is not active in the jurisdictions where gambling is illegal as per local or EU law, citing Austria and Finland as complaint due to perceived rights under EU laws. The DPA now allows Entain to request an extension if it believes the regulatory process in certain markets will be completed soon, with a hard cap of one additional year.

Latam markets

All may not be lost of Entain in the Latam region as progress in the specific nations Brazil, Peru and Chile may allow the operator to continue its presence as part of the jurisdictions’ grey market. On the one hand Peru has enacted regulatory measures to allow for online gambling. Licences are due to issued next year, however, the landscape in the mantime looks very conducive to grey market activities. Similar legislation is progressing in Chile where the process is being drawn out by some staunch opposition to certain features of the forthcoming bill. Most notably the bill currently includes a one year cooling off period for any grey market operators.

Mexico

In Mexico the situation is even more complex with the current legal framework for licensed operators to partner with third-party skins to offer online gambling via their permits.  This may change in the coming months however as local operators now face a new presidential decree that would appear to prohibit that practice, albeit only upon the expiry of existing licences.

Brazil

In the world’s seventh most populous nation, a long-running legislative saga has been threatening a conclusion with both sports betting and online casino games set to be licensed directly for the first time under a bill that has been approved by the lower house of Congress  Still awaiting a vote in the Brazilian Senate that may occur as soon as next week, delays may still be possible with numerous hindrances occurring in the past five years.

SiGMA Eurasia

SiGMA’s world-renowned summits will return in 2024 when SiGMA Eurasia graces the industry’s calendar once again. Dubai will be the host yet again for the much-anticipated conference and exhibition from the 25th – 27th of February. Get your tickets now to ensure you won’t miss out!