IBIA celebrates the adoption of the sports betting law by the Chamber of Deputies in Brazil. The law introduces an effective regulation and licensing system for operators in Brazil, both for sports betting and online casinos.
It also includes a series of integrity measures to reinforce the fight against match-fixing related to sports betting.
The law includes a requirement that betting operators be part of an international monitoring body. A provision that will help ensure that appropriate mechanisms are put in place to help protect operators, their customers, as well as sports, against potential fraud and manipulation.
Additionally, the ability for operators to suspend payments for bets on games that are under investigation for potential corruption is important to deter fraud.
Khalid Ali, CEO of IBIA, said: “This is a historic moment for sports betting in Brazil. A big step in the fight against match-fixing.”
IBIA welcomes the adoption of specific betting integrity provisions into law, which the association has been campaigning for since discussions on the regulation of sports betting began in 2018.
Several Brazilian operators focused on the market have already joined IBIA. We look forward to engaging with other operators looking to offer well-protected sports betting products to Brazilian consumers through IBIA’s world-leading integrity network.”
IBIA is managed by operators for operators
IBIA is managed by operators for operators, with its monitoring and alert network.
The group monitors approximately US$150 billion in betting transactions across approximately 650,000 competitive sporting events worldwide, making it the largest monitor of its kind in the world.
According to H2 Gambling Capital – the main independent authority on global market data – IBIA members account for 60% of the market in Brazil.
International monitoring network
The international monitoring and alert network will provide accurate intelligence on suspicious betting activity in Brazilian sport to betting regulators and authorities.
Khalid Ali said: “Although the new law is a very important milestone in the fight against match-fixing, there is no room for complacency.
Khalid Ali said: “Although the new law is a very important milestone in the fight against match-fixing, there is no room for complacency.
Opening markets to licensed operators is essential to protect consumers and the integrity of competitions against match-fixing.
Khalid Ali continued: “By opening the market to licensed sports betting operators, Brazil is sending a very important message to other markets in Latin America. That a regulated, dynamic and competitive sports betting structure, with strong integrity provisions, is essential to the fight against manipulation.”
IBIA warns of taxation of the betting sector
However, the entity also warned about the impact of taxation on the market. “Sports betting exists in a highly competitive international market and an excessively onerous regulatory and taxation framework will have counterproductive consequences.”
“Unintentional to drive sports betting customers to unregulated markets, thus reducing tax revenues and increasing the risk of corruption and match-fixing,” says the note.
Therefore, whilst IBIA welcomes the fact that the Chamber of Deputies has resisted the temptation to impose higher levels of taxation, the impact of the overall tax burden and the substantial cost of the licensing fee, which remains at R$30 million, may dissuade investments in Brazil.
