The approval of law 14,790/23, which regulates sports betting in Brazil, was a historic milestone for the sector. The country is already one of the largest sports betting markets in the world, generating billions of dollars. With regulation, the sector should gain even more popularity, driving a growth boom.
Although the approval of the law is a step forward for the sector, it only represents the starting point for defining clear guidelines for how the market should operate in Brazil. The country does not yet have a complete and definitive regulatory framework for betting. It is up to the Executive Branch to define what, how and when, with the new ordinances that are to come.
I, as CEO and co-founder of Pay4Fun, the first payment institution operating in the sports betting sector to receive authorization from the Central Bank of Brazil, have been closely following this movement, and I can say that one of the most important phases is yet to come. : putting laws into practice, clearly and without loopholes, and ensuring rigorous supervision, so that the market is fair and competitive, punishing offenders and curbing illegal practices, such as the manipulation of results and the operation of unregulated websites.
Despite the still pending definitions on how the sector will operate, the regulation already establishes some guidelines. The law will allow for greater supervision over the sector, prohibiting the operation of illegal websites, the manipulation of results and determines some guidelines for advertising in this sector. In the payments area, for example, only institutions authorized by the Central Bank will be able to operate, this leads to the fight against fraud and financial crimes in general.
It is important to highlight that the simple fact that an institution is "regulated" or follows the Central Bank's rules does not guarantee its authorization to operate in Brazil. Therefore, it is essential to follow some steps to check whether a payment institution is actually authorized by the Central Bank. To confirm its legitimacy, follow the following steps:
Consult the Central Bank website
In the "Institution Name" field, search for the name of the institution (for example, "Pay"). If the name is listed, it means the institution is authorized. Otherwise, it isn't.
To check the institution's CNPJ (National Register of Legal Entities), access the link and enter the first eight digits of the CNPJ (for example, 20757199 for Pay4Fun). The website will indicate the status of the institution and whether it has any prior relationship with the Central Bank.
The regulation of the sports betting market will place Brazil in a prominent position on the global stage, attracting large investments, especially from operators in the United States and Europe. These, previously afraid of entering the Brazilian market, now, with the regulations in force, must invest significantly in the segment.
To prove this, you don't have to go very far. Countries such as England and Spain, which have already regulated the market, demonstrate the benefits of the measure. Brazilian regulations, in turn, are being carefully designed to meet the needs of the local market and guarantee a safe and transparent environment for bettors.
We are confident in the success of regulating the betting market. We will remain committed to continuing to contribute to this process and help make Brazil an even more attractive destination for the sector, especially with regard to financial transactions.
Founded in 2018, Pay4Fun is the first payment institution operating in the sports betting sector to receive authorization from the Central Bank of Brazil. Operating with more than 500 integrated websites in the entertainment segment, the company reached the mark of R$2.6 billion in financial transactions in 2022.
The company was considered the Best Payment Method for Latin America in the awards promoted by SAGSE 2022 and chosen as the Best Payment Method at the Brazilian iGaming Awards.
In 2023, the company won the RA 1,000 seal, from Reclame Aqui, 3rd place as the best financial service company to work for in GPTW and 2nd place in the SBC Awards, in Barcelona, as payment innovation of the year.
To find out more about the company, visit the website or connect on Linkedin.
Leonardo Baptista
CEO & co-founder of Pay4Fun, a payment institution that offers financial solutions for the entertainment sector. The entrepreneur has more than 15 years of experience in the gaming and information technology industry. In 2022, Leonardo joined the list of the ten most inspiring CEOs by CIO Business Review, which selects the most influential executives in the business world.
