The Brazilian regulator says it is continuing to explore implementing B2B licences, including for payments providers, to help combat the black market.
Speaking at G2E, Fábio Augusto Macorin, the undersecretary for the Secretariat of Prizes and Bets (SPA), said unlicensed operators continue to pose a problem in Brazil following the market’s regulation on 1 January.
According to SPA data, operators in Brazil generated more than £2bn in GGR in the first six months of the year.
However, research has shown that channelisation rates in the market are still soft, with some data suggesting as little as 50% of consumers are playing with licensed firms.
GeoComply data provided on the panel showed the supplier had seen more than three billion transactions and 15 million users in H1.
At ICE in January, SPA chief Regis Dudena said the case for B2B licensure was becoming more evident, and Macorin suggested the wheels are in motion to develop a framework.
He told the G2E panel: “The market started on 1 January and our biggest challenge is for channelisation to the legal market. We’re working on that. Without regulation, the illegal market grew a lot. We have already blocked almost 19,000 websites, but it is not as efficient as we would like.
“We are working with social media companies to shut down profiles that [advertise] the illegal market, and we are working with financial institutions too. We can see that it works better if you block the [flow] of money.
“We are aiming for a new kind of B2B licence that can help us combat against the illegal market as well. We are working with the central bank and federal agencies to show them that a lack of regulation for payment methods is a problem.”
The SPA undersecretary went on to note that education remained a key component of driving channelisation rates up, citing the example that, in Brazil, licensed operators must have a bet.br URL as part of their licence requirements.
He added: “We are [telling] people that playing with the legal market is safer and it helps the country [from a tax perspective]. We are working on this education. We must educate the population to play on [licensed] websites.”
Speaking on the same panel, law firm Pinheiro Neto Advogados partner André Santa Ritta said the availability of Pix meant that Brazil had a means by which to achieve channelisation of around 90%.
Pix is an instant payment method overseen by the Central Bank of Brazil. It has become commonplace throughout the country, from street vendors through to tax collection using the method.
Ritta added: “Close to 90% of payment transactions in this industry in Brazil are made through Pix, which is a closed payment network controlled by the Central Bank of Brazil. We do have a very interesting potential here to reach close to 90% channelisation.”
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Fábio Augusto Macorin states that permits for payment providers would help disrupt the supply of the black market
The post Brazilian regulator says B2B licence plans remain in the pipeline first appeared on EGR Intel.