In recent months, the sports betting landscape in Brazil has undergone crucial changes with the establishment of new market regulations. The recently approved legislation, which ensures the separation of players' assets from those of the companies, creates new challenges for sports betting operators.
Why? It is at this moment of regulation that payment providers believe the right combination of innovative technologies can offer a competitive edge to betting companies that wish to thrive in this new market reality.
The new legislative changes significantly impact the current functioning of the market, where the player's capital remains accessible to the operator. With this change, the player now has more guarantees that their funds are protected by the same rules applicable to the national financial market, thereby mitigating systemic risk for all users of any betting house.
Although this presents challenges for operators, the correct application of new technologies can ensure their continuous growth while prioritizing player safety. After all, a regulated market provides more confidence to the consumer, which in turn increases growth potential. No one should try to circumvent the rules but should learn to adapt to thrive.
The regulation has broad support among participants. A recent survey by Statista showed that 74% of Brazilians firmly believe the government should introduce more transparent legislation for these operators.
Although the bill regulating sports betting has faced criticism from the Senate, where some parliamentarians said it paved the way for "unsupervised virtual casinos," those who argued in favor pointed out that the measure does not create new betting modalities but only regulates a 2018 law (Law 13.756) and ensures government revenue from games already in operation.
These new regulations aim to combat money laundering and ensure the security of transactions in the betting market, as well as increase the transparency of financial transactions in the sector. Although this may seem complicated and unnecessarily technical, we saw at Febraban Tech how, along with these new demands, new technologies have also arrived that can help those seeking to innovate, keeping operations simple and easy to understand for everyone.
Active in the market since 2019, our team at OneKey Payments has gained extensive experience in providing payment solutions for major sports betting operators.
In 2023, we launched a KYC (know your customer) solution that has been used by major betting operators since May last year, reducing cart abandonment, increasing conversion rates, and improving user experience while maintaining control of all customer security details.
These new tools, such as machine learning and data analysis - as well as the previously mentioned KYC - not only simplify the payment process, ensuring secure and authentic transactions, but also create more trust and transparency for the customer.
They also allow companies to ensure they comply with the latest laws, as they give betting operators the ability to discover and prevent fraud, money laundering, and other suspicious activities through aggregated information.
As the betting sector is prone to seasonal periods and transaction peaks, such as before and during major matches and events, operators must ensure they can handle large volumes of transactions quickly, safely, and efficiently.
It is crucial that a payment provider offers reliable and stable services at all times. In other words, during peaks of large betting volumes, operators must ensure that their platform and main Pix do not stop working due to increased traffic.
Moreover, if something goes wrong, you must ensure that you have backup operations ready to run with other providers if necessary. All this is essential to increase customer trust and loyalty. It is fundamental to be prepared to provide multiple backups and other resilience features to ensure that neither customers nor betting houses are left without money.
After receiving the license from the Central Bank of Brazil, our team at OneKey Payments seeks to provide a corporate governance model for payment providers and sports betting operators. We want to show how the latest technologies can not only ensure compliance with legislation and regulation but also improve customer experience, making the market grow and attracting new players by providing a safe, easy-to-understand, and hassle-free experience for everyone involved.
OneKey Payments is a specialist in IP in payment technology licensed by the Central Bank, offering a complete BaaS (‘banking as a service’) that allows companies to scale their inbound and outbound transactions simply and securely, with total performance optimization. The company offers a comprehensive international gateway solution with easy plug-and-play integration and payment solutions in Brazil and worldwide using PIX, bank slip, or credit card.
Guilherme Corbini
Director of Technology at OneKey Payments, with more than ten years of experience in the payments market, managing various successful cases in the sector.
