The numbers show the growing interest of Brazilians in sports betting: according to a report by the financial company XP, this market moved around R$ 13 billion (US$ 2.14bn) in 2023. With the regulation of the sector, through Federal Law No. 14,790 and related ordinances, only companies authorized by the Ministry of Finance will be able to continue operating in the country as of January 1, 2025. The deadline for technical adaptation of companies that requested authorization is December 31 of this year.
Among the points addressed, the mandatory verification of bettors' identities is one of the highlights, especially due to its important social role – since it inhibits identity fraud and the involvement of users who cannot legally bet, such as minors and people who have committed financial crimes. Compliance with the regulations also prevents the participation of individuals who may influence the sporting outcome, such as managers, coaches, trainers and members of the sports technical committee, as well as athletes participating in competitions organized by entities that are part of the National Sports System.
Applicable at all times of the day, anti-fraud and digital identity management solutions contribute to compliance in the sports betting segment. In onboarding, in transactional operations and in monitoring and prevention flows, the requirements of the legislation are met through biometric validation mechanisms, document verification, verification of registration information, email and telephone checks, and investigation of sports ties, among others.
In the idwall identity ecosystem, prior analysis of users and their relevant information can be verified via Background Check, which checks everything from email, phone number, CPF (Individual Taxpayer Registry) and age to information queries in public and private databases. For document verification, there is OCR (Optical Character Recognition) technology to automatically extract and transcribe data and detect forgeries. Another mechanism is Documentoscopy, which combines Artificial Intelligence and specialized human analysis to validate documents.
Data verification and cross-referencing are part of idwall's facial recognition, such as Facematch, which provides a similarity index between faces by comparing two images of a person. Proof of life (Liveness) uses algorithms that seek to determine whether the user is who they claim to be, or whether it is some fraudulent strategy, such as masks or deepfakes.
The Brazilian sports betting law brings necessary regulation to a growing sector in Brazil. The movement protects bettors legally, mitigates fraud and ensures people's right to express their will in a healthy way. Technology is once again an ally of society in building a reality with more trust.
Danilo Barsotti
Chief Technology Officer of idwall
