The Brazilian Institute of Responsible Gaming has signed a contract with the International Betting Integrity Association to protect the integrity of Brazilian sport as Brazil prepares to launch its regulated sports betting industry.
Both parties will work together to “develop activities which reinforce monitoring against match-fixing, and reliability in sports events and online betting”, across the country.
In response to the introduction of sports betting regulations in Latin America, the largest country of Latin America, the partnership will strive to prevent any manipulations of matches. IBIA will use data as evidence for any integrity investigation.
IBJR CEO, Andre Gelfi stated that “Sector Regulation is Essential to Increase the Authorities’ Monitoring and Collaboration Actions to Curb Match-Fixing Schemes, Protecting Sports Betting Companies and Brazilian Bettors.” We have already introduced IBIA officials to key authorities to establish closer cooperation to combat the issue effectively.
H2 Gambling Capital has estimated that Brazil’s unregulated market grew 44.4% in GGR last year to reach BRL 4.5bn. This market is expected to grow to BRL 9.2bn in 2027.
The two parties agreed that it was necessary to protect sporting events against manipulation, as the market has more than doubled in four years.
Khalid Ali CEO of IBIA said: “IBIA was delighted to reach this agreement with the IBJR. Our conversations have shown that we share similar values and goals in relation to the Brazilian sports betting industry.
The Brazilian government has prioritized the integrity of betting products and protection of sporting events and consumers in Brazil. Now, we will be exploring joint projects to further these important objectives.
Brazil Regulations arrive as Lula is about to sign
As SBC Noticias exclusively reported last week by Ministry of Finance, it is finalizing details of sports betting regulations.
The Ministry of Finance, by amending Law 13.758/2018 will continue to apply the proposed GGR tax of 16% and the player prie of 30% but will change redistribution methods.
From the funds collected, 18.13% will go to the National Health Fund, followed by a tax of 43.35 % for prize payments and income tax, and 0.5% for funding the Ministry of Tourism.
Soccer clubs will also benefit materially from sports betting. 22% of the revenues will go to clubs or leagues who will use their branding and IP. Soccer clubs are set to receive an extra 1.5% from the instant lottery operator Lotex for sales and broadcasting rights. This is a big win for sports teams.
The documents obtained by SBC Noticias state: “The fixed-quota lottery will only be permitted or authorized by Ministry of Finance. It will operate exclusively in a competition environment with no limitation on the number of concessions.
The Ministry of Finance can, as part of its control function, ask for technical, operational, financial, economic and accounting data from those involved in activities. This information will be protected by law and the confidentiality of the personal information.
While this is a significant update to Brazil’s sports gambling regulation, President Lula has not yet announced a date when he will sign the regulations into law. However, it is reported that Lula is in favour of this framework.
