Law No. 14,790/2023 will come into force on January 1, 2025, bringing new rules for sports betting and online gaming in Brazil. After years of uncertainty, regulation creates promising prospects. To discuss the future of the sector, the CEO of Pay4Fun, Leonardo Baptista, gave an interview to Correio Braziliense.
Leonardo, with more than 20 years of experience in games and technology, leads Pay4Fun, the first payment institution, which operates in the sports betting sector, to receive authorization from the Central Bank of Brazil.
The impact of the new law
According to Baptista, the sports betting sector must undergo an immediate transformation with the new regulations. He assesses that, initially, there will be a reduction in the number of operators. “This market will shrink in relation to the number of operators because not every company has R$35 million to invest and start operating”, he states.
But despite this, he highlights that the Brazilian market is experiencing constant and irreversible growth. “There is no turning back for this rocket. There is no turning back for betting in Brazil. It is a market that grows by nature”, he adds.
Pay4Fun believes that the path is education and regulation
For Baptista, regulation is the only viable solution. “To prohibit it is to sweep it under the carpet and favor those who were operating in the wrong way”, he explains.
He highlighted that the regulation will bring clear benefits, such as job creation, tax collection and greater control over illegal practices. Furthermore, it will allow concrete actions to help players with addiction problems, something impossible in an underground market.
Another highlighted point was the new ordinance from the National Consumer Secretariat (Senacon) on betting advertising. For Baptista, the measure is essential and should have already been implemented. “Bet is entertainment, it is not guaranteed income,” he said.
He also condemned the use of influencers who showcased unrealistic earnings and exaggerated luxuries, creating false expectations among punters. “This is prohibited and should have been prohibited since day zero”, he emphasizes.
Pay4Fun’s role in the market
Pay4Fun plays a crucial role as a payment mediator between bettors and bookmakers. “We are the betting site machines”, explains Baptista, comparing the company to card machines used in restaurants and stores.
In other words, the company already collaborates with approximately 140 of the 290 companies that requested a license to operate in Brazil. In addition to facilitating financial transactions, Pay4Fun uses advanced technologies to ensure security and combat money laundering.
Baptista highlights innovations such as Pix stamped with CPF, which makes fraudulent schemes more difficult. Furthermore, he believes that emerging technologies, such as Real Digital and ITP (Payment Transaction Initiator), will transform the sector in the coming years.
“Pix is already fast today. But it has a usability problem, because you need to generate the QR Code, open the internet bank, enter the password, validate and finalize the transaction. But this takes up to a minute. With ITP , the same transaction will be carried out in five seconds”, he points out.
Law No. 14,790/2023 brings fundamental changes to sports betting in Brazil. So, with regulation and innovation, the sector can grow sustainably, creating jobs and increasing revenue. According to Baptista, the future is optimistic, but it depends on responsible actions from everyone involved.
“I understand, especially now with regulation, that financial and payment institutions will play a crucial role in making this sector run correctly”, he concludes.
