April marks 100 days since the regulation of the betting market in Brazil. The new guidelines established by the federal government aim to ensure the safety of both players and betting sites, addressing topics such as anti-money laundering measures and user data protection.
With the implementation of the new legislation, betting companies are now required to obtain a license to operate in Brazil. To secure this license, several operational reforms have been mandated.
To comply with the new regulations, betting platforms had to implement new systems and technologies. These include facial recognition for users, registration using photos of official documents, limiting users to a single bank account, and restricting access to customer data — including for company employees.
In this interview, Elisa Mossulino, Strategic Project Manager at Paag — a techfin offering advanced solutions tailored to the specific needs of betting operators — highlighted the impact of regulation on the industry: “There is now much greater security when it comes to investing in this market and viewing it as having significant potential.”
"The market is increasingly focused on extremely important topics, such as: What protections can an operator implement against fraud? What kind of experience is the operator delivering to the player? There’s a much deeper level of analysis now," the executive said.
What have been the main day-to-day changes since the regulated market began?
Elisa Mossulino - I see that there is a greater sense of security and seriousness in the day-to-day operations. In general, there is a much higher level of confidence in investing in this market and seeing it as having great potential. Today, the market has a clear direction.
The biggest change I’ve noticed is the level of conversation. Discussions are increasingly centered on extremely important issues, like: What protections does an operator have against fraud? What experiences are they delivering to players?
There is now much deeper analysis, including when it comes to marketing campaigns. These are aspects we can monitor day-to-day using the tools we have at Paag.
We’re operating on a much more strategic level now than we were four or five months ago. I see the market talking more about security, anti-fraud systems, AML compliance — things that barely existed in the pre-regulated market.
What still needs to improve in the sector? What are the main challenges today?
From my perspective, the entire sector still needs to become more professional — to continue maturing in the direction we’ve seen since regulation began.
One major challenge is the lack of consolidated data and information. What is the actual market share within this industry? It’s almost impossible to determine. The same goes for the market’s potential GGR (Gross Gaming Revenue), as there are no official sources, associations, press coverage, or formal channels that can give us a clear picture of the full potential and reliable figures.
So overall, one of the biggest challenges is finding concrete, consolidated sources of information that can really help companies build more accurate strategic plans.
I also believe the market still has room to grow in understanding the concept of quality versus quantity. At the beginning of the market, most were just looking for the lowest price, while Paag always positioned itself on the side of quality, prioritizing it in everything we deliver. I think the market still needs to better understand what quality is and what’s truly worth investing in.
How would you assess the Brazilian market’s adaptation to the new regulations so far?
I see there’s been strong adherence and an incredible pace by all players in adapting to the regulations. And it was a super complex process, full of gray areas, hard-to-understand requirements, and an unclear path — but players really committed to making it happen, adapting their operations, and addressing issues that weren’t even considered before.
I see that today there are many serious players who truly dedicated themselves to this process. And this is just the beginning. From now on, I believe we’ll see even more qualification and development among these players.
What are the expectations moving forward?
Bringing everything I mentioned together — the shift from a pre-regulated to a regulated market — the expectation is for a more mature market, with professionals evolving alongside the industry and engaging in high-level strategic discussions.
I believe we’re heading toward a path of strategy, security, communication, and financial market alignment — which is also very important. There are many financial market strategies that can be applied to the betting industry.
Source: GMB
