In an exclusive conversation with GMB, Leonardo Baptista, CEO of Pay4Fun, expressed excitement about the direction of iGaming regulation in Brazil. A long-time advocate for clear rules in the sector, Léo mentioned that the Secretariat of Prizes and Betting has done serious work and that it will be easy for the company to comply with the ordinances. He also declared his certainty that the country already holds the second position in the industry ranking and should surpass the United States with the legalization of casinos.
Games Magazine Brasil – Is Brazil still learning about sports integrity or are we already sufficiently integral?
Leonardo Baptista –
I think I'm not the right person to ask that... Because I've been the guy talking about integrity for seven years, since I founded Pay4Fun. So, this type of event is super important to raise awareness among everyone, especially now that the market is moving towards regulation. I've been in this sector for 20 years and am very happy with everything that's happening. Integrity is a key word for regulation and for a healthy market.
Many of the 113 license applications submitted to the Secretariat of Prizes and Betting are from Pay4Fun partners. What are your expectations regarding the approval of these requests and how are you preparing for this new phase, now that these companies will have the SPA stamp?
I'm one of the people who saw it coming a long time ago. I said there would be more than 100 companies and in the end, we reached 113. I'm very happy with all this. I think the more inclusive the market is, the better it will be. I think of the 113, not all will pass. I believe there are some people there taking advantage of the moment and putting themselves up for sale or the space. Anyway, I think 80% of the companies there will pass and be approved by the SPA and from January 1st the market changes.
There are many companies that are already accustomed to operating in regulated markets, including outside Brazil. So, it won't be new. Now, there are many companies that have never operated under a regulator. And then, I'm talking about operators and providers, mainly of payments, who rushed to get authorization from the Central Bank. They got it, but one thing is to have the authorization, another is to work under the regulator. It's difficult and I want to see how this will turn out from January 1st.
For payment method companies, like Pay4Fun, is there any difficulty in the regulation process that you need to chase or have you already overcome everything?
Fortunately, I was one of those who followed, with great pleasure, all the work done by the SPA, because the Secretariat of Prizes and Betting deserves congratulations for everything that was done. Especially the ordinances that hit us the most and that we had the most expectations were those of payment methods and money laundering prevention. Both were fantastic and basically copy and paste. It was a very well-done job in conjunction between SPA and the Central Bank, which is our highest regulatory body.
So, for Pay4Fun, as we have been regulated since 2022 and operate under that regulation, nothing changes and there was no alteration at all. The adaptations we are making are at the system level, such as transactional account and proprietary account, all this to meet the operators and the regulator. But practically, for the payment institution side, we were already 100% framed.
So, should the 113 companies receive the stamp and count on Pay4Fun?
Let's go, let's work. Fortunately, I can say that we have a good part of the 113 companies applying with Pay4Fun. I'm very happy with this, because it crowns our serious work. I can't wait for us to start with the regulated market from January 1st, with everyone operating correctly.
A point that I think will be super important with the regulation is precisely the issue of avoiding the illegal market. Let's see how the Secretariat of Prizes and Betting will deal with all the complaints and act on them. The regulated Brazilian market has a huge, wonderful potential, and I keep saying that Brazil has the potential to be the first country in the world.
Not the third, as is often said?
I understand that today Brazil, given its size, is already in second place, competing with England. I think Brazil has the potential in the medium term, including with the opening of physical casinos from the approval of PL 442/91 [now 2234/2022, in the Senate], we will see a market larger than that of the United States.
Source: Exclusive GMB
