First Ever License for Prediction Markets? | Shahar Mor | Liberia Gaming

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They help companies with white label and turnkey solutions in emerging markets. This year we're doing with Real Roadshow Initiative as part of iGaming Real Talk, where we go to iGaming events all around the world and cover the insights from the ground. Stay tuned and subscribe to iGaming Real Talk. Hello and welcome back to another episode of iGaming Real Talk.

I'm here at SiGMA Asia, and I have with me Shahar, who is the exclusive representative of Liberia Online Gaming Authority. Shahar, welcome to the show.

Thank you so much. Thank you for having me. It's a pleasure to be here. Before we start, I just have to say that Surya is one of a kind because first of all, you have the best community in the gaming industry, the biggest, and you bring to the community something from yourself. You know what I mean? Because also the people who join the community, they have part of you. I mean, they nice, they don't rude, they lovely person. It's something different.

Everybody can build a community.

Yes.

But not everybody can bring their soul and impact the community to look like them. So, first of all, in the name of all the gaming community, I want to thank you because you built a lot of connections and good people can connect with good people because the good people build this.

Yeah, yeah, yeah. So, thank you so much because the community has changed everything for me as well. I did have the podcast before, but as I started the community, as I started bringing in more and more people that are part of this community and community started growing, everything else also started growing. Of course, the community is an extension of what I believe and what I also want to support and bring together for the industry itself. So, thank you for seeing that.

Thank you for recognizing that as well. It's a pleasure. So, let's talk about the prediction market. It's the talk of the year. Everyone wants to talk about prediction markets, right? A lot is happening in the US regulated markets. It's a category that is invented just to skip regulation in US. What do you think about the prediction markets in general? Is it actually taking the business from the crypto?

Is it actually taking the business from the gambling and then forming a new category?

I have the point of view of a lawyer about this thing because you see many time that technology it's way before the technology. They can't catch it. They can't catch it in time. Until we will have some law to regulate the prediction market, it can take 5 years, 10 years. I have seen... Until this day, we don't have a proper terms for NFT.

Yeah.

How many time pass? Until this day, we don't have it. So, you think you will have a proper regulation for the prediction market? This is part of the game. This is part of the legal game. This is part of our work as lawyers to play with the tools we have. And the funny thing is the USA say that they don't see it as a gambling.

Yeah.

It's not gaming. It's not gambling.

But in essence, it is.

Okay. USA. The USA say not. It's not gaming. It's not gambling. That's what USA say. Other... And UK came and say it's gaming.

Yeah.

It's gaming.

Yeah, because they don't want to hurt the other operators who have been operating in the gambling space, who are taking the licenses, who are paying taxes, who have employees, and it's a direct competition to them. So, it's in the interest to protect what they have been pioneering in the gambling industry. So, I think more and more...

Personally, I think more and more European jurisdictions will go down that route because Europe has always been a mature market in terms of gambling compared to US.

More than US?

US has always been in the middle. Now, it's growing up.

I'm not sure because... Let's see. We can see Polymarket.

Mhm.

You know, it's about billions.

Yeah.

Only. And USA say looking for not gambling, not gaming. And the UK say gaming. So, who is better lawyer to decide what it is.

Yeah.

Who decide? So, here is where we come to the picture and use our tools to play with it. So, that's why we decide to bring to the market the first...

Mhm.

Prediction market license.

Okay. Is this the first ever?

The first ever. The only one in the market. We decide to make proper framework to regulate this area to make it clear so we can have how to do it.

Yeah.

First of all, it will assist the players so they can know what are the terms, what they can do, what they can do.

For example, you know, one of the things that comes to mind with prediction markets is where is the line? How can you ensure there is no insider trading? Because it's P2P essentially.

You know what a funny story?

I mean, right?

Yes, you know what a funny story? There is a guy in France...

Okay.

That gamble on the what will be the weather.

Okay.

So, how...

Yeah, I saw that one. Yes, yes, yes.

Came with a fan.

Yes, yes.

And he manipulated it. Yeah, it's amazing. It's amazing.

Yeah, I mean, this is the thing I'm trying to understand and even for the audience.

Think.

Exactly. So, how do you how do you define those things with your prediction market license?

With our license.

You have a definition for what is accepted what is...

If you don't want to pay people about those things, you have to say in advance.

Ah, okay.

Because if they were lose, you will bring the money back.

So, but you leave this up to the each operator to decide which ones they want to and which ones they don't want to or you decide the events and the categories that okay, these categories are not allowed and you put this as a thing for the operators before they get the license. Because I'm curious, you know. It's an interesting area to...

Yes.

To be honest, when we are talking about people's life...

Yeah.

It's like the guy from France come with a fan, someone can come with a gun. So, we don't want it. That's why I see... This is why we need license. This is why we need a regulator like Liberia. This is why we need to make some proper terms for it and regulate it right now before it will be too late and we will have too many loopholes and too many players lose their money and we will see things we don't want to see.

So, if USA didn't do it and the UK, we will do it because first of all, we want to protect the players. We want to evolve prediction market...

Mhm.

Industry because they need rules to follow. Because if you don't have rules to follow, you can't really evolve. You can't improve. You can't... You can't like be in the dark and...

Okay.

You don't know what in what you should invest, in what not. So, here you know, you can get and then you can get a banks, PSPs. You can get everything you need in order to operate and feel like you have a home. Yeah. And how long does it take for an operator to get a prediction market license from you?

First of all, we need to get the UBO documents. We need to verify them. There is a thumb self-video link. We are checking the business plan. Something very fast. These days, I do it myself, but I really do it to improve this industry and I do it for the industry because I really believe it. It's like a mission for me.

Why should someone take a license from Liberia online gaming authority commission and not from someone else? Or why should they actually trust taking a license from Liberia?

I really want to answer. I really want to answer this question, but...

Because it's on the mind of people who are watching, huh?

I really want to answer this question, but...

But could that be a right reasons for doing something?

You don't have any choice. We are the only one to do it.

Mhm.

And there... Okay, and if someone will come with someone will come say I'm a in charge of an island and I now you can buy prediction market for me. We have a government domain that you can't fake it. You can't buy it. The government domain so it's one of our advantage. We are getting you a local bank account.

Mhm.

In one of the biggest banks in Africa. You're getting local AML officer. You are getting a unique business address.

Yeah. Okay.

We have collaboration with something like 15 PSPs and DMIs and banks, platforms, and all the providers in the industry to make it happen included platform providers. The thing that nobody else have and I'm getting calls every day for people...

Yeah.

That wants...

There's a lot of interest already?

Yes, but everybody is because it's new.

Yeah, yeah, yeah.

And it's the talk of the town. Everybody needs someone else.

Yeah.

There is someone looking to lead. How I market it? How I promote it? How I bring a players? Someone wants to have a technology. How I get a platform?

Yeah.

Someone want the license. Someone want the payment solutions.

Yeah.

Everybody wants something else and take all together and build a package for it and we can assist everyone with it and you know we are here in a gaming event but I really love the gaming industry. I really love everyone here but to be honest it's going to be the future the prediction market because it's involved everything. Sport betting. You can bet about the weather. You can bet about politics. You can bet about stocks.

It's going to be up or down in the next minute or in the next year. You can bet about crypto. The BTC will go going up or down in the next minute or in the next year. And it's also involved investment firms. Bbook Broker, it's like when the players play against the house. So, with this kind of platform, you can do it in the prediction market.

So...

Yeah, I think some of the sports betting platforms already implemented this. Because, you know, the primary difference between a prediction markets and sports betting is that in sports betting you play against the house. And in prediction markets, you play against another player. And some of the players, they want to play against the house because it is guaranteed in a way. But, you know what I mean. Yes, yes, but let me fix you.

I'm sorry, but you are starting to bet against another players from a specific amount. Because you can't bet against another players from the first dollar. Because there is a lot of mathematics behind it. So, after 20K, something like this, then you start play against another players. Before less than that, you are play against the house. So, that's what I mean by Bbooks Brokers. They will be able to use the prediction market to use their operation. They can use stocks.

They can use crypto. They can use sport betting. They can use politics, weather, everything in one platform. So, again, I love all the gaming industry. I love all the gaming people. I love brokers events. But, in the end of the day, we can do one platform from all, from everything. You can bet about everything because in the end of the day, everything is a bet. You are going to the stock market, you are going to Binance. To be honest...

Yes, yes. I mean everything in life, if you look at that way.

Yes, so it's everything in one platform. The bet is everything in one platform. You don't need to go into the Bbook or the platform or the log into your bank and buy these stocks. So, you have everything in one platform, everything in one place, everything at operation you trust because they will be in the end of the day you will have the big ones like...

Yeah.

And you will do everything in one place. You don't need to separate it. So, I really believe this is the future because this is what's going to happen.

Thank you so much Shahar for coming on as well as talking and sharing your insights about the prediction markets and your predictions as well about the prediction markets. So, it's great to have you here.

Thank you so much. And again, I want to thank you about the community you built, good spirits you bring to our community. And we really appreciate you as a professional and also as a friend.

Thank you so much.

Thank you so much, my friend. Thank you so much. Thank you so much.

So, that's it guys for today and for this episode. Do share your thoughts in the comments below. Do you think prediction markets is going to be the future of gaming industry? Do connect with Shahar as well as follow what Liberia is doing on this front and I'll see you on the next one.

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