Assessor Especial do Ministério da Fazenda, Francisco Mansur. Foto Valter Campanato/Agência Brasil.

The Brazilian government is developing an innovative system to monitor bets in real time for all online bets made by companies registered in the country, in accordance with recently sanctioned legislation.

In addition to regulating the activity, the new law provides for the taxation of bettors’ winnings and the revenue of the companies involved.

The program, developed by the Federal Data Processing Service, aims to identify fraud in the payment of taxes and monitor the profiles of bettors to alert them to possible defects.

Companies, according to the new legislation, will be legally obliged to provide detailed player data.

Francisco Manssur, special advisor to the Treasury, in an interview with Globo highlighted:

“It’s an integrated system, which will show us in real time, perhaps with a few minutes delay, the movement of bets, so that we can not only monitor the collection of taxes, but also possible fraud, negative externalities, or even manipulation of results”.

The Treasury also wants to cross-reference data to find out how many hours bettors spend online.

“We want to combine data from all companies, per user. If José da Silva, for example, is spending more than 10 hours betting, we can thus capture a case of possible pathology and debt”, said Mansur.

Data crossing and fraud alert in sport

The government plans to cross-reference data to evaluate the time that bettors spend online, allowing the identification of cases of possible pathology and debt. As an example, Mansur mentions that if “José da Silva” spends more than 10 hours betting, it would be possible to capture a case of possible pathology and debt.

Furthermore, the system will be accessed by the Ministry of Sports, which will monitor atypical sports bets. And they may indicate manipulation of results in sporting events, especially football.

If an unusual bet is detected, such as R$1 million on a corner from a small team, the government will issue alerts to analyze the athlete’s behavior on the field.

Authorizations and regulations

The Ministry of Finance plans to open, until February, the deadline for online betting companies to request authorization to operate in Brazil, as determined by the new legislation.

The authorization process will include the hiring of an accredited laboratory to analyze suitability and issue a certificate, functioning as an external audit.

The Treasury emphasizes that the law does not seek to indiscriminately release games, but rather to protect citizens. Several ordinances are under development to regulate different aspects, including audit laboratories and advertising of betting platforms.

Responsibility in advertising, including rigorous monitoring of digital influencers, will be a priority.

Interest of companies and organizational structure

More than 130 companies have already expressed interest in the promising Brazilian betting market, exceeding the expectations of the Ministry of Finance. The regulation aims to attract large international houses, with 44 companies in tax havens and 64 Brazilian companies showing interest.

The Prizes and Betting Secretariat, although not yet officially created, will have 38 positions distributed between authorization, supervision and sanctions. The structure of the secretariat aims to guarantee a regulated and safe environment for the betting sector in Brazil.