LATIN AMERICA IN FOCUS
Hard Rock Suspends Exec Over AML Allegations
Hard Rock has suspended a top executive amid allegations he permitted illegal bookmakers to gamble at one of the largest gambling resorts in the Caribbean.
Hard Rock suspended Alex Pariente, the company’s senior vice president of hotel and casino operations, without pay following explosive whistleblower allegations of an alleged structuring scheme at Hard Rock Punta Cana in the Dominican Republic.
The whistleblower, a federal informant, accused Pariente of permitting numerous illegal bookmakers to gamble at the resort, including Matt Bowyer, a Southern California bookmaker currently awaiting sentencing on federal money laundering charges.
“Hard Rock International is aware of the allegations involving one of our executives and is treating the matter with the utmost seriousness,” Hard Rock said in a statement.
Brazil Congress Forms Committee to Review Controversial Tax Hike
The Brazil Congress has formed a joint committee to review the provisional measure that would increase the tax rate on gambling operators’ GGR from 12 percent to 18 percent.
In June, the Brazilian government shocked the licensed gambling sector by issuing a provisional measure (PM 1,303/2025) that proposes a 50 percent increase in the gambling tax rate.
Since the provisional measure was published on June 11, Congress has up to 120 days to decide whether to approve the permanent tax increase on gambling.
The joint committee has scheduled four public hearings, beginning on Aug. 7 and concluding later that month, to discuss the measure and hear opposing perspectives.
ANJL Drops Lawsuit Against Brazil Supermarket Association as Talks Commence
The National Association of Games and Lotteries (ANJL), a Brazilian gambling trade organization, has withdrawn its lawsuit against the Brazilian Association of Supermarkets (ABRAS) concerning a social media video that criticized the betting sector.
In June, the ANJL accused ABRAS of misleading the public through a video titled “History of Bets” that was posted on the supermarket association’s social media channels. The video claimed licensed gambling is linked to worsening food insecurity in Brazil.
The ANJL filed a lawsuit requesting ABRAS to explain the origin of the information included in the video, but ahead of a meeting with retail entities last week, the ANJL has dropped the legal action.
The ANJL says it will now pursue dialogue with the retail sector to jointly advance issues of common interest, particularly centering on the financial health of consumers in Brazil.
Betsul CEO Departs to Start New Gaming Services Project
Fernando Garita has announced he has left his role as Betsul CEO, becoming co-founder and managing partner of the new company Kabata Group.
Garita was appointed Betsul CEO in November 2023 and has helped the company to become a fully licensed operator in the newly regulated Brazil betting market.
In a post on LinkedIn, Garita thanked Betsul and expressed gratitude for the achievements and lessons during his two-year stint as the company’s CEO.
“This is not a goodbye, but the end of a cycle that leaves solid foundations for the next steps of my trajectory in this great industry,” Garita said. “I am deeply grateful for the opportunity to have been a part of this story.”
Garita has co-founded Kabata Group, which he told iGaming Brazil will offer the gaming community a variety of services, such as consulting and the formation of growth partnerships, for international companies looking to enter Latin America.
ANJL Rejects Study, Affirms Gambling Doesn’t Cause University Dropouts
The ANJL has criticized a study that claimed students aged 18 to 35 in Brazil were postponing their studies because of gambling expenses.
Last week, the Brazilian Association of Higher Education Providers (ABMES) released the findings of a study titled “The Impact of Betting on Higher Education,” in which it claimed an estimated 2.6 potential entrants to private higher education in 2026 are risking not enrolling due to financial issues stemming from online gambling.
However, the ANJL issued a response in the form of a clarification note, stating the licensed betting industry in Brazil “rejects the constructions of narratives” that look to blame the sector for social and economic struggles among the population.
The ANJL stated: “There is no direct relationship between gambling two to three times a week and dropping out of or continuing a higher education program, as the survey and report suggest.”
