iGaming News #015 | Sports Betting: avoid risks and protect your reputation
WEpayments
Cross border Payments Solutions | Authorized Payment Institution by the Central Bank of Brazil
Hello,
I am Fernanda Rachel Z. , co-founder of WEpayments, with over 14 years of experience in the payments industry. In this edition, we will discuss the importance of preventing risks and reputational damage when choosing partners that ensure operational compliance in the sports betting sector.
??? The importance of compliance in the Sports Betting sector
To avoid fraud and combat money laundering, the sports betting sector is rigorously monitored by specialized agencies and must adhere to a series of regulatory requirements. In a regulated market, the rules for Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) are clearer and stricter, establishing a high level of compliance for all.
These measures help maintain market security and integrity, ensuring that transactions comply with regulations. Following these practices reduces financial and operational risks while protecting the reputation of the companies involved, thereby increasing consumer and partner confidence in the industry.
? Choosing experienced and central bank-authorized partners
It is crucial for sports betting operators to partner with payment institutions authorized by the Central Bank that have the necessary experience to ensure secure operations and compliance with the new regulations.
Starting January 1st, for example, bettor accounts linked to institutions not authorized by the Central Bank of Brazil will not be able to be used for deposits or prize withdrawals. This rule by BACEN reinforces the need for a secure payment validation flow.
Additionally, non-compliance with the law can result in regulatory penalties and complicate the operational management of the betting operator, affecting cash flow and prize payments. These consequences make it essential to choose authorized financial partners to ensure the continuity and security of operations, as funds from third parties are segregated from the institution's own funds in licensed payment institutions.
?? Resource segregation and operational transparency
Authorized Payment Institutions are required to segregate third-party funds from their own funds, which cannot be confiscated, and must also adopt stringent fraud prevention measures in payment operations to bettors.
This includes the use of KYC (Know Your Customer) to reduce risks, checks such as verifying identities against international restriction lists (UN, OFAC, INTERPOL), and confirming that payer data is accurate.
Furthermore, sector operators must ensure a clear segregation between funds designated for bettor deposits, which must be kept in "transactional accounts," and resources used for operational management and liquidity, known as "proprietary accounts." These measures are crucial for mitigating risks and ensuring transparency and security in the sports betting market.
?? Operational maturity and compliance
Choosing a Central Bank-authorized institution with experience and processes audited directly by the regulator provides more security to operators, ensuring that all industry norms, including Anti-Money Laundering (AML) regulations, are followed.
Having robust security and compliance mechanisms is essential to meet the requirements of the Ministry of Finance and the Sports Betting Secretariat, which regulate the sector. Working with partners who are well-versed in these rules offers more peace of mind.
You can read more about Anti-Money Laundering rules in edition #005 of our newsletter, authored by our Compliance and AML/CTF specialist.
WEpayments: commitment to regulatory compliance
At WEpayments, we are a Central Bank-authorized Payment Institution since 2023, operating in the iGaming market. We are fully compliant with Ordinance 615 and offer solutions that allow operators to adapt to both current and future requirements.
Our payment platform is already adapted to the new regulations, helping operators revalidate their registration bases in advance and take preventive measures more easily without the risk of facing impacts on January 1st. We provide the entire payment structure in advance.
If you need help or have any questions, our team is ready to support you every step of the way.