GMB – Is Brazil still learning about integrity in sports or are we already honest enough?
Leonardo Baptista – I don't think I'm the right person to ask you this... Because I've been talking about integrity for seven years, since I founded Pay4Fun. So, this type of event is super important to raise awareness, especially now that the market is moving towards regulation. I've been in this sector for 20 years and I'm very happy with everything that's happening. Integrity is the key word for regulation and for a healthy market.
Many of the 113 license requests submitted to the Prizes and Betting Secretariat 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 SPA approval?
I'm one of the people who called the ball 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 of this. I think the more inclusive the market is, the better it will be. I think that not all of the 113 will pass, and that there are some people there who are taking advantage of the moment and are willing to sell their companies or their space.
In any case, I think that 80% of the companies that are there will pass and will be approved by the SPA, and the market will change from January 1st. There are many companies that are already used to operating in regulated markets, including outside Brazil. So, it won't be anything new.
However, there are many companies that have never operated under a regulator. And here I am talking about operators and providers, especially payment providers, who rushed to get authorization from the Central Bank. They did, but it's one thing to have authorization, it's another to work under the regulator. It's difficult and I want to see how things will be from January 1st.
For payment method companies, such as Pay4Fun, are there any difficulties in the regulatory process that you need to overcome or have you already done all of this?
Fortunately, I was one of those who followed, with great pleasure, all the work done by SPA, because the Prizes and Betting Secretariat is to be congratulated for everything that was done. Mainly the ordinances that hit us the most and that we had the most expectations for were those on payment methods and prevention of money laundering. Both were fantastic and basically copy and paste. It was a very well done joint effort between SPA and the Central Bank, which is our highest regulatory body.
So, for Pay4Fun, since we have been regulated since 2022 and operate under this regulation, nothing changes and there has been no change whatsoever. The adaptations we are making are at the system level, such as transactional accounts and proprietary accounts, all of this to serve the operators and the regulator. But in practical terms, for the payment institution side, we were already 100% compliant.
In other words, should the 113 companies receive the stamp of approval and count on Pay4Fun?
Let's go, let's get to work. Fortunately, I can say that we have a good portion of the 113 companies applying with Pay4Fun. I'm very happy about this, because it's the culmination of our serious work. I can't wait for the regulated market to begin on January 1st, with everyone operating correctly.
One point that I think will be super important with the regulation is precisely the issue of preventing the illegal market. Let's see how the Prizes and Betting Secretariat will deal with all the complaints and act on them. The Brazilian regulated market has enormous, wonderful potential, and I'm always saying that Brazil has the potential to be the first country in the world.
Not the third, as is always said?
I understand that today, due to its size, Brazil is already in second place, competing with England. I think Brazil has potential in the medium term, including with the opening of physical casinos after the approval of Bill 442/91 [now 2234/2022, in the Senate], we will see a Brazil bigger than the United States.
Source: Exclusive GMB
