This July, Paris will become the host of the world’s largest sporting event: the Olympics. Over 10,000 athletes are expected to compete in 48 events from July 26 to August 11, 2024, representing a vast array of opportunities for the sports betting industry, which is currently experiencing significant growth in Brazil.

Since the enactment of Law No. 13.756 in 2018, Brazil has been consolidating as one of the most promising markets for gaming and betting, reaching the 4th position in 2024, according to data from IBIA, H2 Gambling Capital, and IBJR. Data released by the Central Bank of Brazil indicates that Brazilians moved around R$ 54 billion in betting platforms from January to November 2023.

A recent survey conducted by Datahub reveals that, from 2021 to April 2024, the sports betting market grew by 734.6% in Brazil. The study also indicates that in the first four months of this year alone, the same number of companies were opened in the sector as existed in 2022 (79 companies).

Amid the exponential growth of the sector in Brazil, the Olympics stand out, being the third most popular event for betting worldwide, only behind the World Cup and the Super Bowl, according to NSOFT, a Sportradar company.

The Olympics offer an unparalleled opportunity to combine passion for sports, engagement, and a sense of participation and patriotism with the entertainment and excitement provided by sports betting. The event represents the most democratic of competitions, with various events for all audiences.

Although data on the volume of bets during the Tokyo Olympics is uncertain and dispersed, it is possible to project this increase by comparing it with the other two most popular events: the FIFA World Cup and the Super Bowl.

For Super Bowl LVIII, held on February 11, 2024, the American Gaming Association (AGA) estimated that Americans wagered US$23.1 billion on the final game of American football.

Ranked first in popularity, the 2022 World Cup in Qatar saw bets amounting to R$ 185 billion. The World Cup in Qatar experienced an approximately 65% increase in betting volume compared to the 2018 World Cup in Russia, according to statistics from the British multinational bank Barclays.

The sports betting industry continues to develop, improve, and mature year after year, especially with the opening of new markets and the regulation of ongoing operations. Consequently, with each major sporting event, growth in revenue and the popularity of sports betting is expected, particularly with the positive peculiarities of the event for bettors:

* The Olympics present a wide range of sports and events, offering numerous betting opportunities. From popular events like basketball and athletics to niche sports like fencing and archery, there are options for all types of bettors.

* The Olympics offer a variety of proposition bets, such as predicting the total number of medals a country will win or whether a specific athlete will set a new world record.

* The high diversity of parlay bets allows bettors to combine multiple bets into one, increasing the potential for winnings and the attractiveness for bettors.

However, the magnitude the betting market can reach in 17 days of competitions should prompt substantial caution in the industry. Beyond being a stage for promoting peace, integration, and unity among countries, the Olympics also showcase the integrity, ethics, and harmonious development of humanity through sports. It is essential to ensure that all competitions are conducted with fairness and true athletic excellence.

Combating match-fixing is a challenge that must be taken seriously by betting operators, in collaboration with event organizers. This concern is heightened by the variety of events that comprise the Olympic Games, which can make it difficult to prevent and combat match-fixing.

The unpredictable nature of the Olympics, with many athletes peaking at the right time or delivering unexpected performances, leads to greater variation in betting outcomes. This unpredictability can make betting riskier compared to more frequent sports leagues, representing a risk for both the operator and the bettor.

To address this, the IOC has relied on IBIS (Integrity Betting Intelligence System) since 2014, which closely monitors the games to detect any suspicious activity or events related to sports betting.

In its extensive network, IBIS collaborates with International Federations, national gambling regulators, operator associations, and the betting operators themselves. All these actors have access to an intelligence platform where they can exchange information with sports organizations and event organizers.

In this scenario, operators in Brazil must maintain constant vigilance, active and transparent communication with Brazilian authorities (both sports and betting), cooperation in investigations of suspicious activities, promotion of responsible gambling, responsible advertising, and the implementation of robust compliance and anti-money laundering programs.

While the Olympics bring great business, investment, and revenue opportunities to the sports betting sector, the magnitude of the event and its peculiarities also demand greater responsibilities from operators.

The success of the gaming and betting industry lies in the public’s positive perception of the activity, achieved through the sector’s efforts to provide safety, honesty, reliability, and transparency to bettors and society. The 2024 Olympics could be a watershed moment both in terms of revenue and in building a good reputation for operators.

Filipe Senna Goepfert
Lawyer, Master in Gaming Law from the Brazilian Institute of Teaching, Development and Research (IDP), Partner at Jantalia Advogados, author of the book “Regulação da Sorte na Internet” (Regulation of Luck on the Internet).

Anna Carolina C Carneiro Bello
Lawyer, Master in Legal-Political Sciences from the Faculty of Law of the University of Coimbra, Partner at Jantalia Advogados, member of the Association of Women in the Gaming Industry (AMIG).

Source: GMB

Responsible gambling: challenges for bookmakers in Brazil and lessons from international experience

Over the last few years, one of the major concerns raised in debates about the opening of the gaming and betting market in Brazil has revolved around the negative effects that this activity could have on people and families. Much has been said, for example, about the risk of excessive engagement or involvement of potentially vulnerable groups, such as minors, the elderly and people with behavioral disorders associated with gambling.

On October 27, the Ministry of Finance took an important step in tackling this problem: in the long-awaited Normative Ordinance No. 1,330, of 2023, which establishes the general conditions for commercial exploitation of the lottery modality of fixed-odd betting in Brazil, the requirement that bookmakers create a “responsible gaming” policy.

For those who work in this industry, this requirement sounds natural and even basic, especially because it is present in several countries around the world. But, for the vast majority of people, some doubts still persist: after all, what is “responsible gambling”? How does it manifest itself in practice? What can be demanded from bookmakers that intend to operate in Brazil?

A good starting point for understanding the subject is the concept itself proposed by Ordinance MF No. 1,330, of 2023: according to art. 14, responsible gambling consists of the set of “measures, guidelines and practices to be adopted to prevent compulsive or pathological gambling disorder, to prevent and not induce debt and to protect vulnerable people, especially minors and the elderly.”

Although the concept brought by the ordinance does not differ from what is seen in other countries, it is necessary to highlight that Brazil’s culture and legal system have their own peculiarities – starting with the protection system established by the Consumer Protection Code.

In practice, this allows us to foresee the need for much greater care on the part of bookmakers in formatting and detailing their responsible gaming policies and procedures in Brazil than is seen in other countries. Therefore, it is necessary to go beyond the normative concept: we must seek the essence and logic that guides this institute, identify international standards of responsible gambling and adapt them to the Brazilian reality.

The international experience of this industry shows us that, conceptually, “responsible gaming” is something much bigger than just “non-problematic gaming”. The logic that guides legislators, and even self-regulatory entities in major world centers, is that gaming and betting must be practiced for fun and entertainment, consciously, and not out of necessity.

From this perspective, any factor that leads a person to play or bet out of ignorance (e.g. without knowledge of the risk of loss or because they think it is a source of income), out of real need (e.g. financial problem) or psychic need (e.g. addiction or search for status) needs to be the object of attention and effective measures. The essential core of any responsible gambling program, therefore, is prevention.

Given this, the gaming and betting industry has gradually consolidated some responsible gaming standards, including with the collaboration of private entities. Among others, see, for example, the “Safer Gambling” program, developed by the Gambling Commission, in the United Kingdom, and the “Responsible Internet Gambling Standards”, proposed by the National Council on Problem Gambling, an entity established in the United States.

Although the presentation system and nomenclature vary according to the legal reality of each country and the criteria adopted by each body or entity, it is possible to group these standards into five pillars: (i) corporate policy; (ii) advertising and publicity; (iii) awareness and clarification of bettors; (iv) bettor protection mechanisms; and (v) assistance and referral of bettors.

The “corporate policy” pillar concerns the requirement for a declaration of purposes and the bookmaker’s commitment to responsible gambling itself. Naturally, speech is not enough: there must be a detailed description of guidelines, principles, rules, procedures and, also, a minimally precise indication of the internal structure, resources and training that will be implemented by the bookmaker.

The “advertising” pillar concerns all the precautions that must be observed when promoting betting services. This involves defining rules and conditions relating not only to locations, channels and times of broadcasting of communication pieces, but also to the language to be used and the alerts that must accompany this dissemination action.

In turn, the “awareness and clarification” pillar comprises measures aimed at ensuring that bettors are aware of the dynamics of the game or bet and its risks. This involves, among other measures, the production of documents and the creation of a customer service that is capable of adequately informing about the rules for using the platform or application used, the risks of financial loss from this activity.

Interesting alternatives are the creation of knowledge tests about the rules and risks of the game and the bet, as well as the creation of a kind of score or “thermometer” through which the player himself can assess how much his habits may indicate a possible gambling addiction.

No less important, the pillar “protection mechanisms for bettors” involves the requirement to design a series of features designed to prevent the practice of betting by those legally prevented (e.g.: minors) and vulnerable people (e.g.: gambling addicts, the over-indebted and, eventually, the elderly), as well as the abuses and excesses of betting.

The features that can be configured by bettors themselves are known worldwide, such as pause and self-exclusion mechanisms, as well as limiting losses, the number of bets or even the time spent using the electronic platform. But, increasingly, compliance with this pillar is also demanding a more active stance from the bookmaker. Not only because some gamblers may declare a false identity, but also because experience shows us that many of them do not see themselves as addicts or, through unconscious mechanisms, have the false feeling that they always have total control over their actions – and that is why they believe that they don’t need to limit themselves.

Still in this pillar, it is highly recommended to implement ex ante features, such as the prior qualification of the bettor through “know your customer” procedures – which necessarily involves checking the legitimacy of the information. In the case of Brazil, where the betting culture is relatively recent, it may be especially recommended to apply suitability questionnaires (to collect more objective parameters about the person’s profile and income range, for example) and the creation of betting routines. artificial intelligence that, based on this information, triggers automatic preventive locks, in order to increase the level of protection for bettors.

Finally, the “assistance and referral for bettors” pillar comprises the mechanisms through which the bettor can request and receive qualified professional help. Some classic tools are full-time telephone assistance services and also the indication of names and contact details of specialized centers for research and treatment of gambling disorders.

These, of course, are some initial reflections that require attention from bookmakers. There is much more to be explored and sought after. In any case, one thing is certain: “responsible gambling” cannot and should not be seen by betting houses that intend to operate in Brazil as an expression of a “politically correct” stance. A minimum of familiarity with judicial practice shows us that, given the admittedly paternalistic jurisprudence of our Courts, the conception of a responsible gaming policy is, above all, a powerful risk prevention instrument.

Fabiano Jantalia
Founding partner of Jantalia Advogados. Doctor and master in Law (UnB). MBA in Finance (FGV). Lawyer specializing in Economic Law and Gaming Law.

Source: GMB Exclusive

The gambling and betting regulation scenario in Brazil has never been as heated and prosperous as in 2023. The work in favor of legalization and for the best enjoyment of the benefits arising from this sector relies on the participation of the federal government, the National Congress and initiatives of the industry itself. On independent but coordinated fronts, they complement each other towards a common objective.

On the first front, in the National Congress, the president of the Senate, Rodrigo Pacheco, stated that one of the priority agendas this year is the vote on the replacement of Bill 442, from 1991, known as the Regulatory Framework for Gaming in Brazil. The project intends to legalize and regulate games of chance, such as bingos, casinos and the jogo do bicho.

The approval of this project represents an unprecedented and very promising advance in the gaming sector in Brazil. The regulation of these activities has notable benefits, such as generating job openings, increasing the economic development of the country and regions with low economic alternatives, creating protection parameters for players, strengthening operational security for game providers and, above all, increasing revenue to the State.

In 2022, the efforts made by the President of the Chamber of Deputies, Arthur Lira, had an effect. The substitute for Bill 442 was drafted and approved in February of that year, under the rapporteurship of Deputy Felipe Carreras, considered an “agenda holder” of the sector, that is, a politician who concentrates important debates on a certain matter.

The debate overcame historic moral prejudices about gambling, almost all of which have already been rejected by the international experience in gambling regulation, as occurred in the United Kingdom or in Nevada and Atlantic City, in the United States.

As for the federal government, the Minister of Finance, Fernando Haddad, highlighted the development of a provisional measure to regulate fixed-quota bets, sports betting, in compliance with the creation of the modality in 2018, with the publication of Federal Law 13,756. Completion and presentation of the normative draft is expected after his trip to China in early April.

With the issuance of the provisional measure, it is expected the possibility of operating sports betting by companies authorized by the Ministry of Finance and headquartered in the national territory. The benefits of this movement are the increase in revenue from the taxation of the activity, the creation of parameters for monitoring operations and the creation of responsible gaming rules for gamblers, in a growing and opportune market in Brazil. The expectation is to remove the fixed-quota betting sector from a gray operating situation, with uncertainties for companies and bettors, and consolidate it as one of the largest markets in the world.

Finally, dealing with the third front, it is worth mentioning the engagement of operators in building the sector and in favor of the development of gaming and betting activity in Brazil, with the creation of the Brazilian Institute of Responsible Gaming (IBJR) and the National Association Games and Lotteries (ANJL), in which part of the biggest players in the national territory participate.

The institutions created by the industry have the common objectives of helping the government in the debate about the regulation of games of chance and betting and contributing to the growth of the sector in the domestic market, with parameters and guidelines for safety and reliability. The industry’s movement is consistent, as it demonstrates that the gaming and betting sector of the 21st century moved in an organized and committed way to remove that prejudiced and obsolete historical perception that the gaming sector is dishonest or a stronghold of organized crime, replicated in movies, books, series and soap operas.

It is currently an economic activity in which the vast majority of operators are committed to quality standards, in the midst of an active competitive environment. The self-regulation criteria imposed by the gaming and betting market itself are essential for the operator’s survival, and those who comply with them are prepared for regulation. The debate on gambling and betting regulation in Brazil has never been so mature and ready to take off.

Filipe Senna Goepfert
Lawyer specializing in Gaming Law, Master in Gaming Law at IDP, partner at Jantalia Advogados.

Source: Gazeta do Povo

Translation source: GMB

Mistaken link of casinos with organized crime and the importance of a regulatory framework

In the public debate on the legalization and regulation of gaming in Brazil, especially reinvigorated during the assessment and approval of Bill No. 442, 1991, by the House of Representatives, one of the most used arguments was that the opening of this market in Brazil could lead to the proliferation of organized crime.

This argument only reproduces the common sense that the operation of gaming, especially casinos, is related to organized crime and favors, in some way, the action of local and international criminal groups. This perception ends up being the fruit of what is seen in films, novels, books and a poor understanding of the history of one of the best known gambling centers in the world: Las Vegas.

A brief analysis of the trajectory of the sector shows that this association between gaming and crime is overcome, and, in the United States, more than 70 years ago, precisely with the issue of a specific legislation on the topic – the solution that, at this moment, is in the hands of the Federal Senate.

Before the 1950s, the operation of casinos and gambling in the United States was, in fact, mostly carried out by organized crime. Several groups exploited illegal lotteries, installed small casinos in restaurants and nightclubs, fostered bookmakers, and often used these developments to launder money.

In the state of Nevada – which is home to Las Vegas – the first casinos were installed and built by organized crime. These establishments were not subject to any kind of supervision and, consequently, operated dishonestly, often linked to other illicit activities.

The perception of this movement, at that time, reached the representatives of the federal government of the United States. Concerned about the situation, the federal government orchestrated an intervention on casinos installed in Nevada in order to curb the actions of criminal organizations, and even considered, at the time, to prohibit the operation of gambling in the state.

The point is that casinos were already of notorious importance to the local economy and tourism, attracting visitors and players from other states and countries with the gaming industry. The city was already known for its diversity of casinos, artistic shows and as a national and world entertainment hub. Casinos moved and fostered the economy of the city of Las Vegas and the state of Nevada, with jobs, economic development, increased taxation and strong tourism.

The threat of federal intervention to curb illicit practices tied to casinos has raised a significant question to the Nevada state government: how to mitigate national concerns about the operation of games by organized crime while preserving the economic and tourist advantage arising from these ventures?

The Nevada government’s solution was to take regulatory policies to oversee and control the industry to curb illicit organized crime practices and ensure honest and transparent exploitation of gaming. That is, instead of simply banning, the chosen solution was to regulate, supervise and control the activity.

To make this possible, the State of Nevada mapped out all the factors and loopholes that attracted organized crime to casinos and created rules and control mechanisms to eliminate those attractions to crime. The legislation created required the adoption of parameters and rules that gave honesty, transparency and, especially, reliability to Las Vegas gaming sector. With this, organized crime was eventually purged from Las Vegas casinos, which prevented the much-feared federal intervention.

In addition to fending off this risk of intervention, Nevada state representatives realized that the regulation of the sector was also beneficial to local economic and tourism development. The perception that the activity was operated in an honest and safe way has increased the casino audience, private investments and the development of the gaming industry, which maximized the benefits of this sector to the economy.

This brief retrospective on the “before” and “after” regulation of the sector, which occurred in the 1950s in Las Vegas, is undeniable historical evidence that the association between gaming and the proliferation of organized crime is a myth, only being possible where this economic activity is marginalized and indiscriminately prohibited.

From the experience of the State of Nevada, it is clear that the approval of a serious and consistent regulatory framework for gaming in Brazil would have the effect absolutely opposite to that of the popular imagination: instead of favoring the action of organized crime, the law will create means to combat the practice of illicit, to ensure that the activity is practiced honestly, reliable and responsible.

It is therefore in the hands of the Federal Senate the opportunity to “turn the game”, approving Bill No. 442 of 1991.

Source: GMB