The International Institute for Governance and Risk (GovRisk), in partnership with Genius Sports and Entain, held the 3rd Sports Integrity Summit this Thursday (5) at the Football Museum in São Paulo. During the event, which discussed best practices in sports, athletes, sports organizations, integrity associations, and companies from the sports betting and online gaming sectors gathered to focus on discussing best practices in sports.
One of the most anticipated panels was "From Regulation to Implementation: Navigating Brazil's New Sports Betting Law," featuring the Secretary of Prizes and Betting from the Ministry of Finance, Regis Dudena.
In his introduction to the topic, Dudena presented a historical overview of the regulation process and highlighted the work carried out by the SPA (Secretariat of Prizes and Betting) in meeting deadlines to prepare the ground for regulated operations in Brazil. "Since we presented the regulatory agenda, we were asked whether the deadlines would be met. With pride in a team that worked tirelessly, I proudly say that yes, we met the goal of delivering all the ordinances by the end of July."
The secretary stated that everything was done by listening to the market to ensure that nothing was overlooked in the regulatory process. "Why did we do this? To align everything with the regulated market and to make the activity transparent and compliant with the law. The rules must be followed by everyone."
Dudena emphasized: "We imposed strict rules, and 114 companies entered the Betting Management System (Sigap) with their license applications. This means they said, 'Yes, I agree with the rules.' Now, we must work to review everything that has been submitted and deliver, by the end of November, approvals for those that meet all the criteria."
According to the secretary, all irregularities will be combated with the start of regulated operations on January 1, 2025. “Everyone will have to comply with the rules, and we have mechanisms to prevent those who do not have a license from operating and also impose sanctions on betting houses that fail to comply with the law.”
Regis Dudena stated that the work carried out by the Secretariat of Prizes and Betting aims to make Brazil a success in this industry "under proper regulation and strict but clear rules for the entire sector."
The secretary acknowledged that the process of reviewing license applications will still take time. “Each company has 100 documents to be analyzed at this stage. With 114 applications submitted to Sigap, there will be more than ten thousand documents for our team to study,” he said.
Dudena also emphasized the convergence of interest between the regulator and the regulated entities regarding bettor education. "First and foremost, people will need to understand where they can and cannot place bets. They will need to know that they must bet on an authorized site. That’s the starting point. Obviously, we will take action against illegal sites as a way to protect bettors."
Among the measures pointed out by the secretary are the blocking of unlicensed sites and even preventing unauthorized sites from sharing links on social media. "Historically, in the context of the relationship with social networks, there have been some divergences on how they could monitor illegal activities due to concerns about value judgments. This won’t be the case for betting sites, as it’s binary. If a site is authorized, it can operate; if not, it can’t. It’s that simple," he said.
Payment methods
Another way to curb unauthorized sites, according to Dudena, will be through payment methods. “With regulation and the requirement that financial transaction providers be authorized by the Central Bank, we have another ally in blocking operations of unlicensed sites,” he stressed.
Regarding payment methods, Leonardo Baptista, CEO of Pay4Fun, who participated in the panel alongside Regis, stated that "all reports of money laundering and other negative externalities will be eliminated. With the requirement that payment providers be authorized and regulated by the Central Bank, any attempt by unauthorized sites to continue operating will be thwarted."
Leo added: "Today, 96% of transactions are done through Pix, and it was a wise decision to prevent sites from accepting credit card payments. This brings even more transparency and security to the sector. Pix and Central Bank regulation will serve as an important filter to curb unauthorized sites."
On this topic, Valter Delfraro Jr., executive of government relations and business development at GLI, said: “I worked for many years in the financial market, which is highly regulated, and I see that the sports betting and online gaming sector is even more so, which brings security to both the bettor and the market.”
As the first laboratory to be accredited by the Secretariat of Prizes and Betting, GLI is more than ready for the regulated Brazilian market. “We operate in all jurisdictions worldwide where gambling is regulated, and offering our services in Brazil is not much different from what we have done for many years. Not only regarding technical requirements but also in matters of responsible gaming, which will provide numerous guarantees to the government that all rules will be followed by operators,” Valter Delfraro highlighted.
The executive also noted that the industry itself will need to educate not only bettors but also the media. “By doing so, it will make it clear how serious the activity is, focused on best practices, combating gambling addiction, and promoting responsible gaming,” he concluded.
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Source: GMB
