GMB – Many people have said that betting cannot be done with a credit card or on credit. Doesn’t society understand that this no longer happens in the iGaming segment in Brazil?
Leonardo Baptista – I think the problem isn’t with society. The problem is the lack of education from those who have the power to communicate with it. I’m not sure if it’s due to specific interests or not, but there are statements that are completely contradictory when it comes to our sector. For example, talking about betting with a credit card… Credit cards haven’t been used in our sector for years, mainly because it was never allowed due to the lack of regulation. Credit cards didn’t process the transaction, which is coded as gambling in Brazil. That’s where it starts. Visa and Mastercard don’t process these transactions.
And for those payment methods that found a workaround to process credit cards, passing it off as e-commerce or something similar, that’s over. With the arrival of Pix, more than 96% of transactions in our market are now done through this system. Credit cards? Zero. Today we have Pix, bank transfers, and a small number of boleto payments, which have also been prohibited under Law 14.790 and Payment Ordinance 614. So, this kind of statement is made to confuse or stir things up. Or it’s simply out of ignorance.
We’ve seen statements from the Federation of Banks saying they’ll keep an eye on things, and from businesses blaming iGaming for decreased sales. Is this nonsense?
Gambling has been around since the beginning of time. We know this. So, we understand that gambling exists, and the idea is not to ban it. The more you prohibit it, the more you drive the irregular market. So, you see certain politicians and institutions saying, “Let’s revoke the regulation of gambling, let’s ban betting in Brazil.”
Prohibition is foolish, to be clear. It’s sweeping under the rug, something that is already out in the open. The player who is already betting is the one taking the risk of betting on illegal sites or with manipulated odds. Regulation and the law solve all of this. We need to bring it under the law through regulation, not prohibition. The push to attack betting as it is now is foolish, weak, absurd, and it won’t stand.
The sector has long advocated for responsible gambling, even before regulation and ordinances. Does this show that the industry cares about the bettor?
Exactly. Regulation needs to be in place to prevent, for example, what happens in the broader financial sector. Do you agree with me that it’s absurd for a major bank to charge interest rates of over 200% on a customer’s overdraft? Yet that’s allowed. So, it’s a double standard.
Regulation is important to prevent illegal sites from offering rigged games or to stop digital influencers—who should really have their heads knocked against a wall—from guaranteeing prizes or money or saying, “Play, bet, and secure extra income.” These people should be stoned in public squares. That’s what regulation is for. The idea is, once again, ignorance or lack of education. Prohibition is not a solution for anyone.
The operator never offers extraordinary winnings, right?
That’s not the point, nor is it the goal. It’s important to remember that the objective is entertainment and fun. Just like when someone leaves home and goes to the movies, they spend money in exchange for entertainment. Gambling and betting, is exactly the same thing.
In other words, ‘pay to have fun.’ Speaking of which, how is Pay4Fun doing, and what are the plans for the regulated market in Brazil?
We’re very pleased with everything that’s happening. It’s important to note that since Pay4Fun was founded in 2017, it has followed all the rules. In 2022, we became the first payment institution authorized and regulated by the Central Bank of Brazil to operate in this market. So, Pay4Fun is super happy with everything that’s happening, keeping up with and helping the regulatory process.
We’re eagerly awaiting January 1st to start the regulated market in Brazil, which is the natural order of things. The market will concentrate on the companies that have applied for licenses, which is excellent because we’ll finally separate the wheat from the chaff, both in terms of operators and those who cause harm and intend to do so.
In the same way, the payment methods that operate irregularly, illegally, without any kind of anti-money laundering measures, will now face a new reality as of January 1st. The rules are changing.
Source: Exclusive GMB
