Brazilian football is experiencing the biggest scandal in its history with the revelation of a scheme to manipulate fouls and cards in matches, with the aim of affecting the results of sports betting.
This case is just the tip of the iceberg of a problem that affects not only the credibility and integrity of football, but the entire betting industry.
From the World Cup betting pool to bingo for the elderly, betting is part of everyday life for millions of Brazilians. But what makes people bet? From a financial perspective, bets don't usually pay off: after all, the return depends on the probability of an event occurring and the expected return in case of success. For example, in the case of the Mega Sena, the chance of matching the numbers is so low that even multiplying this probability by the millions of reales of the highest prize does not make it worth investing the R$5 in the ticket. The same goes for most types of bets.
There is another element: a bet is often a form of entertainment or a consumer good that provides satisfaction. The bettor is not only based on probability and expected return, but also on other factors such as emotion, fun, challenge, social influence or habit.
In the case of sports, betting is often a complementary activity to watching games: fans try to predict the winner, number of points, amount of penalties as a way of showing their knowledge of the sport and who knows how to earn some money with it.
Despite being a banal activity, among the 193 countries of the UN, Brazil is part of the minority group of 37 countries that prohibit or have not yet created rules regulating the betting sector as an economic activity. Alone, regulation will not curb fraud or crime in the sector. At the same time, without clear rules defining the responsibilities of betting operators, it is impossible to adopt governance and compliance measures.
The regulation of gambling in Brazil has been stopped by the National Congress for decades. The oldest bill on the subject, Bill 442/1991, was approved by the Chamber of Deputies in 2022, but was blocked in the Senate. Bill 186/2014, also stalled in the Senate since 2015, seeks to authorize and regulate casino games, bingo, jogo do bicho, online betting and betting on horse racing.
Despite the legitimate concern of critics of regulation with risks such as addiction, money laundering and corruption, the case of football fraud clearly shows how a total ban is not effective in curbing these problems.
Researchers David Forrest and Levi Perez suggest that there are at least five principles for regulating sports betting.
The first principle suggests using evidence and good practices from other countries, considering the unique characteristics of each market. That is, the first step is to establish a regulatory framework that is effective and adapted to the specific context. The second emphasizes the promotion of transparency and competition in the betting industry to avoid monopolies or oligopolies that can manipulate results or launder money, providing clear and reliable information to consumers.
In addition, the authors propose licensing and inspection systems for betting operators, which require technical, financial, legal and ethical requirements. As well as mechanisms such as betting limits, programs for the prevention and treatment of gambling addiction and codes of conduct to avoid conflicts of interest or corruption.
They also point to the need for cooperation between regulatory authorities, betting operators, sports organizations and anti-corruption and money laundering agencies, through channels of communication and exchange of information for the prevention and punishment of crimes.
Finally, education and awareness are also key to raising awareness of the risks and consequences of illegal betting and match-fixing, as well as encouraging a culture of integrity and responsibility in sport.
It is clear that the crisis of manipulation in Brazilian football is a reflection of a larger problem in the betting sector.
Despite being a popular and common activity, the betting market lacks effective regulation and governance to ensure integrity and transparency. The consequences of the lack of regulation are significant for the sport, the companies involved in this market and society as a whole.
Gambling is a form of entertainment that should not be treated with moralism, but with responsibility. If regulation does not move forward in Congress, curbing fraud, money laundering and other crimes will be an increasingly difficult task.
Bizarre Deborah
Economist from UFPE, she studied behavioral economics at Warwick University (UK); evangelical and coordinator of Public Policies at Livres
Source: Folha
