Increasingly present in Brazil, online betting sites may be about to leave the country's informal environment. Within this market, the understanding is only growing that the regulation of the sector is no longer a matter of “if”, but “when” it will happen.
In view of this, the main companies operating in the segment are already beginning to anticipate and invest in initiatives that prepare their businesses for a regulatory scenario.
If you want to know more about it, continue reading this post to understand the importance of regulating the online betting market and how we can help you with this process. Check out!
The online betting market today
The current scenario of the gaming market is a gray area in Brazil, as betting and gambling are prohibited in the country. Therefore, almost all companies operating in this area are headquartered abroad and offer their services online to Brazilians, without any regulation and control.
For example, Paddy Power Betfair PLC and Bet365 Group Ltd are among the largest companies in the online betting market operating in the Brazilian market, however, their headquarters are located in the United Kingdom.
Meanwhile, the lottery in Brazil is a monopoly of the Federal Government.
With the arrival of regulation, all that should change.
This discussion gained strength from the enactment of Law 13,756/18, still in the government of Michel Temer. It mandates that sports betting regulation be completed in the country by December 2022.
With the new regulation, the Federal Government no longer has a monopoly on lotteries. Each State of the Federation will be able to create its own lottery through public tenders.
The most interested in this are betting sites, as one of the requirements must be precisely the fact that you have already worked with betting.
In parallel to this, the National Congress is also analyzing the legalization of gambling in all its aspects, which would include casinos, bingos, jogo do bicho and sports betting.
Faced with this scenario of imminent regulation of this market and with a view to complying with the law, companies in the sector have sought to implement security measures with regard to the use of personal data and the safety of users, which is highly beneficial for the online gaming ecosystem as a whole.
Why regulation is importante
If you see the regulation of the online betting market as something negative, maybe it's time to rethink your opinion on the subject.
In fact, this process can represent an opportunity and be beneficial for the different agents involved in this market.
Here, of course, it is considered that the Brazilian regulatory model will follow the logic of free market, or permission, with the granting of licenses to operators, as in the United Kingdom, a country that has a regulatory model considered quite successful.
From the regulation, the first benefit would be precisely in the fact that companies in the sector would have legal certainty to operate in Brazil.
As we are talking about an increasingly profitable activity, this also becomes interesting for the country's government, since it represents an opportunity for collection.
In the current scenario, only foreign countries where online betting sites are based get some kind of return via tax collection.
With the regulation, there is the possibility that these resources will stay in Brazil and be converted into investments for the benefit of society as a whole.
Furthermore, with the establishment of these companies in the country, the government estimates that they could generate 600 thousand jobs in a post-regulation scenario.
In a regulated market, betting companies also need to comply with a series of rules in order to obtain their license, which represents a barrier to untrustworthy sites and fraudsters seeking to impersonate gamblers.
Similar to what is already happening in the financial sector, regulation would require companies to pay more attention to their users, improving their identification and monitoring to prevent the use of these platforms for illicit practices such as identity fraud and even money laundering.
For this reason, the regulation of the online betting market represents the possibility of bringing greater security to bettors and increasing the confidence of society as a whole in this type of business, in addition to the other benefits already mentioned.
Now that you've been introduced to the main benefits of regulating the online betting market, we invite you to read on and see how CAF can help your business prepare for the regulatory landscape. Check out!
How can we help
During the Brazilian iGaming Summit 2022, I had the opportunity to talk about CAF's performance in the segment. Click this link to access the video!
Now, check out our solutions for the online betting market:
Safer onboarding
Improve your customer's registration experience and protect your company from fraudsters with the solution called Combat Fraud. Through it, we are able to determine the authenticity of documents and prevent malicious people from impersonating others to commit digital crimes.
Background check
Get to know the users registered on your platform better, consulting information such as criminal records, professional and financial data and much more. Make use of this process known as background check to prevent your platform from being used for, for example, money laundering and/or terrorist financing.
Validation of active users
With our Identity multi-factor authentication solution, demand additional information before authorizing a certain action within your platform and prevent the theft of your users' accounts. We can configure this process to generate as little friction as possible.
So, was this content helpful to you? Know that the online betting market has received special attention from CAF specialists.
In a use case about the segment, we bring examples of customers who already make use of our solutions to prevent identity fraud.
Access this link to access the content and learn more about our performance in the online betting market.
Vinicius Tsuda
Graduated in Law, registered at OAB/SP
Key account manager at CAF
