Sport Betting Integrity in Brazil
ENG
By Wesley Callegari Cardia
Former president of ANJL (Brazilian Association of Gaming and Lotteries)
Like many countries, Brazil faces the challenge of match-fixing, particularly concentrated in soccer, which dominates approximately 90% of the nation's sports fandom, marketing, and television coverage.
The concern over match-fixing has reached federal authorities, including the newly created Games and Lotteries Secretariat and the Congress, where two Parliamentary Commissions have been established to address the issue. Operators, often the primary victims, are also deeply involved in these discussions.
Following the enactment of Law 14.790/2023, which established general parameters for sports lotteries and online gaming, the Brazilian government, through the Ministry of Economy, has begun issuing a series of ordinances. Among these is a requirement for operators to hire sports integrity companies to monitor and prevent match-fixing. Article 7, § 1, subsection 7, says that “the operators should be connected to national or international integrity organisations”.
The Brazilian operators understand and agree that such a rule protects all parts of the market, especially when it comes to gamblers’ confidence in the companies. Compared to the stringent regulations in parts of Europe, Brazil’s current approach is seen as more balanced, though there are concerns about potential overregulation as the remaining ordinances are finalised.
The country has a large history of illegal gambling. To bring it to light to create a regulated market is not an easy task because there are many actors fighting against it. So, the Secretariat of Games and Lotteries needs to be tough to answer those who want to make it difficult for operators to get a license. Contrary to what everybody is aiming for, a thorough regulation may decrease the number of licensed companies. The overregulation is good only for the grey market. In Germany, for instance, the University of Leipzig estimates that only 50,7% of online gambling revenue came from legal operators, highlighting the risk of driving players toward unregulated markets.
The best approach is information. Educating Brazilian gamblers about tools available to protect themselves from overplaying is essential. Effective communication and awareness are crucial in promoting responsible gambling behaviours. In Europe, for example, the number of players who use safer gambling tools is increasing. In 2023 65% of gamblers voluntarily adopted such tools. That is the key point: the action must come from the player through information received and voluntary behaviour to use the tools. Not by law commandment.
It is necessary to say that the newest big regulated market in the world is facing a dilemma. Learning from other countries' experiences, such as France, where the number of illegal players (4 million) exceeds legal ones (3.6 million), is crucial to shaping a successful regulatory framework. Balance the rules is fundamental. Integrity is a cornerstone, but exaggerating the rules may push people to the grey market before attracting them to regulated gaming.
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