The regulation of sports betting continues to be implemented in Brazil. Thus, betting platforms, or bets, will have new responsibilities from January 1, 2025.
These companies will need to identify, qualify and classify the risk of bettors, in addition to reporting suspicious transactions to the Financial Activities Control Council (Coaf). Thus, the measure aims to combat money laundering and other illicit activities in the sector.
Therefore, bets will have to evaluate the compatibility between the economic and financial capacity of the bettors and the value of the bets placed. It will be necessary to check whether the bettor is a politically exposed person or close to someone who is.
Furthermore, the qualification of bettors is an essential step to guarantee the security and integrity of the betting market.
Risk rating
Bets that show signs of a lack of economic or legal basis, that are incompatible with market practices, or that indicate money laundering, will receive special attention.
Situations to be monitored include:
- Betting on Bet Exchange: where the odds are defined by the bettors and not by the platform, and there may be arrangements between the bettors to divide the prize.
- Atypical Movements: operations that suggest the use of automated tools.
- Financial Incompatibility: divergence between the operations carried out and the bettor’s profession or financial situation.
The information collected must be preserved for at least five years. In addition to bettors, bets must also carry out risk classification of employees and suppliers.
Additional regulations and standards in the betting market
Published in the Official Gazette of the Union, the ordinance establishes the rules for the identification and qualification of bettors, in addition to the need for communication to Coaf. This measure is part of a series of rules that the Ministry of Finance is publishing to regulate the betting law, sanctioned in 2023.
The Ministry of Finance is also regulating online gaming, which includes virtual slot machines. The main difference between online gaming and sports betting is the randomness of results in online casinos, determined by a random number generator, while in sports betting, results depend on the performance of real athletes.
People prevented from working in the sports betting sector
Betting law prevents certain people from placing bets, including:
- Under 18 years old.
- Owners, administrators and employees of betting platforms.
- Public agents involved in the regulation and supervision of betting activities.
- People with access to computerized lottery systems.
- Individuals with influence on the outcome of sporting events.
- People diagnosed with gambling addiction.
The implementation of these measures aims to make the betting market safer and more transparent. Therefore, the risk classification of bettors and the reporting of suspicious operations to Coaf are important steps to prevent money laundering and guarantee the integrity of the sector.
