Ex-MGA CEO Heathcliff Farrugia on How SiGMA Brings Industry & Regulators Together

SiGMA’s story began long before the first expo

Heathcliff Farrugia remembers the moment clearly as he expressed this to Surya Palli. Around 2014, while still at the Malta Gaming Authority, a man walked into the office with a simple observation: Malta had a thriving iGaming industry and strong conferences, but no dedicated expo.

“We said, well, let’s give this a try,” Heathcliff recalled. Government support followed, and the rest is history. More than a decade later, SiGMA  has grown into one of the largest gaming expos in the world expanding into AI, blockchain and affiliates while keeping the core gaming community at its centre. For Heathcliff, it remains one of Malta’s standout success stories of the past decade.

International relations is about more than networking

Since joining SiGMA roughly 2 years ago, Heathcliff and his team have focused on government, policy and regulatory engagement.

The goal is practical: use SiGMA’s global recognition to help the industry speak constructively with regulators and politicians. At events such as the Latin America summit in Brazil, that means bringing officials from Brazil, Paraguay, Colombia, Peru and Argentina onto the same stage so issues can be discussed openly rather than only in closed meetings.

“We don’t want to have an expo where the issues are discussed in separate meetings,” he explained. “We want to discuss them on a panel.”

Brazil shows both the opportunity and the risk

Brazil regulated online gaming first, unusual in a market where land-based activity is still largely unregulated. Tax collection has started, yet political pressure exists in some quarters to reverse course or block land-based regulation.

Heathcliff is clear on the consequences of going backwards. In a country of 220-230 million people with a deep football culture, betting will not disappear. It will simply move underground  removing player protections and tax revenue.

“Why would a huge country like Brazil want to go back to that place?” he asked. A senator who appeared on a SiGMA panel is among those pushing to keep online rules intact and introduce land-based regulation. Heathcliff remains hopeful that common sense will prevail.

Over-taxation makes the illegal market more attractive

Looking at mature markets such as the UK, Heathcliff is sceptical of sharp tax increases. Higher taxes and rising compliance costs make licensed operations less competitive against operators who pay neither.

No market achieves 100% channelisation. Claims of very high rates should be treated carefully; realistic targets under good regulation sit closer to 80-90%. Multi-million-euro fines, he noted, are almost exclusively levied on licensed operators. Unlicensed entities are far harder to enforce against because regulators can only meaningfully sanction those who hold their licence.

The industry has matured but the conversation never ends

Heathcliff has watched the sector change dramatically over 12-13 years. Events that once centred on partying now feature high-profile companies, serious negotiations and professional discourse.

Yet regulation debates will remain permanent. SiGMA’s consistent message is that proper regulation is the only sustainable path. Operators, he stressed, do not reject rules or tax, they reject over-regulation and punitive measures that push activity into the black market.

“The industry will keep growing,” he said. “It is up to authorities whether it grows in a regulated fashion or not.”

What stood out to us

1. SiGMA’s growth is as much a community and policy story as a commercial one.
2. Open panel discussions between regulators from different countries reveal more common ground than many expect.
3. Brazil’s online-first approach is rare and the risks of reversal are significant.
4. Higher taxes in mature markets can unintentionally strengthen the illegal sector.
5. Licensed operators already carry the compliance burden; enforcement against unlicensed players remains difficult.
6. The industry has professionalised, but constructive dialogue with policymakers is still essential.

What’s your plans and how are you adapting with the change in the Brazilian Market? 

About SiGMA Group

SiGMA Group organises leading events in iGaming and emerging technologies around the world. The company is known for connecting industry professionals in a professional setting.

This series is a part of the 3rd edition of Real Roadshow 2026 from SiGMA Brazil. The event brought together leaders and experts to discuss regulation and the current state of the market in Brazil. 

About Real Roadshow 2026

This episode is part of the third edition of Real Roadshow 2026 initiative, where we go to iGaming events globally and cover insights from the expo floor. This time we are at BiS SiGMA South America.

The series captures the latest trends, challenges, and opportunities in the fast-growing Asian iGaming market, with a special focus on the South American Market. The event brought together leaders and experts to discuss regulation and the current state of the market in Brazil. 

This interview series is brought to you by Evoverse, which offers custom crypto casino source code so operators can launch their casinos with full control over their products and margins. It is also supported by Blockotech, your go-to platform provider for the LATAM market.

About iGaming Real Talk

iGaming Real Talk is hosted by Surya Palli and delivers authentic, on-the-ground conversations with industry leaders from events across the globe. The series covers personal stories, exclusive announcements, and the real future of iGaming.