GMB – What is Paag's expectation now that the ordinance has been published for betting companies to submit their license applications to the Ministry of Finance?
João Fraga – We are in a very good and important moment for the sector. We had been waiting for this for a long time, and our operations, thank God, are well taken care of. At Paag, we provide full support to operators, especially with the new products we have launched, particularly in the regulatory area with our advanced KYC solution. We are managing to serve our partners very well and facilitating their access to collecting and sending information to the Ministry of Finance, so they can start operations.
It is an extremely keen moment in the Brazilian scenario, especially for some foreign companies with whom we have partnerships and that were just waiting for regulation. They are now ready to start their projects in Brazil. So, I couldn't be happier with this project advancing and regulation becoming increasingly close in the Brazilian scenario.
A specific ordinance on payment methods had already been issued, and the authorization ordinance also refers to this. Is Paag prepared?
At this moment, the government mainly wants to protect players and the incoming operations. I think increasingly, regarding transaction control, there will be security and quality in the services provided to Brazilian players. Paag is very pleased with these requirements because we are getting closer to regulation and ready to comply with the ordinances.
We recently joined the National Association of Games and Lotteries (ANJL) and increasingly understand the importance of regulation and that it is not bad for the market as many people thought. It is essential to differentiate those who are doing serious work, looking seriously at the market and operations. This sets us apart from those just adventuring and taking advantage of the moment without having the structure and security that Paag offers to provide cutting-edge solutions for operators in Brazil and those arriving.
Regarding financial transactions, will there be more changes within the scope of complete regulation of the sports betting and gaming market?
I think we already have a very clear definition of what is expected, especially regarding financial transactions, but also particularly in the banking area, such as account organization, separating players' funds from operational money. This is perfect. However, utmost care is needed, and not accepting credit cards was a wise decision by the Ministry of Finance and the Secretary of Prizes and Bets to ensure a well-regulated, satisfactory, and safe market for players. I don't believe more details will be released, but if they do, Paag will be prepared. If more comes out, it will only improve and further protect the market.
How do you evaluate and what is your perspective on the participation of large commercial banks in the iGaming business?
I think it is a good opportunity for commercial banks to participate. However, they are starting to approach the sector a little late. In Paag’s case, we offer not only financial products like bank accounts and financial transactions. We understand the entire context of how a sports betting operation works. We provide accounting assistance for betting houses, especially within the regulated scenario. It will be increasingly difficult to control this. There is a lot of novelty, and not everything is fully outlined yet.
Working in the segment, we understand the operator's needs and can build increasingly better-customized solutions for these betting houses, unlike commercial banks that offer a bank account, which they have always done. They don’t change for a market but offer the same product.
Does the segment need customized solutions?
Definitely. Besides being a very new field, the sports betting market is unique and different from any normal financial transaction. We need to be very agile and available, understanding both the player’s and the operator’s needs. These are things that traditional banks are still far from understanding, and they will offer a standard product. We, who work in the segment, know exactly what operators need.
Besides the payment method, we have KYC, facial validation, liveness check, and all the requirements of Law 14.790. Among them, people prohibited from gambling, sanctioned lists, and other data to be provided to the client within our platform. With a single solution, the operator solves all the problems. I do not see banks as direct competitors but as partners that can provide the infrastructure for us, who know what to really offer for operations and bets.
Source: Exclusive GMB
