Influence of Match Fixing Scandals on the Brazilian Betting Regulation
April 7, 2023 Ken JohnsonBrazil offers a wide sports betting market with an unregulated nature, leading to illegal practices. The world-known match fixing scandals are seen as a breakthrough, as many legal experts see it – imminent to accelerate the progress of legalising the niche with a Brazilian betting regulation. The government had spent years attempting to create a safe and regulated sports betting act, overseeing the segment.
Our article follows the events wrapped around passing Federal Law No. 13,756/2018, aiming to make fixed-odds sports betting permissible by law. The whole process started in 2018 with the Ministry of Justice’s proposal, which had an interesting turn of events. We disclose the details surrounding the regulatory regime for betting in Brazil.
Safe and Regulated Brazilian Sports Betting Legislation
When it comes to legality, there is still no Brazilian sports betting legislation to guarantee a safe and regulated industry. Many had feared that former president Jair Bolsonaro had blocked the process of approving a sports betting act. There was a four-year window set out by the passed legislation in 2018, which the government had failed to ratify in the given period. The events that led to this step were as follow:
- Wide unregulated markets caused illegal sports-related actions.
- Those match-fixing scandals have increased public pressure.
- That triggered a response in the form of legal reform.
- The Brazilian betting regulation might be useful for other purposes.
- The ministry sends its proposal.
The subject of the regulatory regime for betting in Brazil, related to sports betting, involves various setbacks. Even though many match fixing scandals in Brazil have been investigated and proven, the path to regulated sports betting is speculated to have been blocked by former president Jair Bolsonaro. The saga has been going on for over four years now. Still, many legal offshore platforms are providing lawful betting opportunities presented by the best online casinos in Brazil.
Proposal for Online Sports Betting Legislation in Brazil
One of the leading figures in that aspect was José Francisco Manssur – a lawyer from São Paulo and sports law specialist. He was involved in the legislation that created a particular model of incorporating companies designed for Brazilian football organisations, a.k.a. the SAF (Sociedade Anônima do Futebo). He had worked for the government before and was trusted by the ruling Workers Party.
According to the Brazilian sports journalist Kfouri, the ministry will send a proposal to create a Brazilian betting regulation. The submission for Brazilian sports betting legislation will be to the president’s chief of staff’s office at Civil Hill, the cabinet-level office in the country.
If approved, the government will promulgate a provisional measure (PM) and several ordinances to create an online sports betting regulation in Brazil. The PM is widely expected to amend several federal laws, mainly the sports betting law, by adding extra safeguards and penalties.
Match-Fixing Scandals – Where It All Started
Football is the most widespread sport in the country, which explains why older and more recent match fixing scandals in Brazil are in that niche. There are many leagues, and when combined with the unregulated gambling scene, the sport becomes a tasty bite for gamblers. The table below summarises the most prominent misconducts in the country, which led to a needed turmoil regulation-wise:
| Scandal | Info |
|---|---|
| The Two Referees in 2005 | Paulo José Danelon and Edílson Pereira de Carvalho (a member of FIFA’s referee staff) had accepted bribes to fix football matches. Sports authorities ordered the replaying of 11 matches officiated by them. Both face criminal charges and have been banned for life from football. |
| Douglas Costa in 2009 | The Ex-Juventus star Douglas Costa admitted to match-fixing and deliberately helping his then-club Gremio lose against Flamengo in 2009. He blames the club bosses and thousands of fans for imploring the team to lose to Flamengo. |
| Diego Matos in 2019 | Outside the football-based match-fixing scandals, we want to show the devotion of the government. The BRA tennis player Diego Matos received a lifetime ban for match-fixing. |
| Three Football Clubs in 2020 | Olimpia FC, Barretos EC, and Paulista FC faced a four-month ban and a fine, affecting seven players and one coach. The clubs competed in the regional Paulista Serie A3 and were penalised for match-fixing. |
Vulnerabilities attract criminals, who approach athletes working in Brazil to manipulate results. The country is highly vulnerable to manipulation of results and sporting events. The main factors include thousands of matches happening each year, scarce supervision, low wages for athletes, deregulated sports betting market, little investment in combating criminal conduct related to match-fixing, and more.
What to Do Against Match Fixing in Brazil
While there is not yet signed an online sports betting regulation in Brazil, one of the measures that some state football federations have adopted is the hiring of sports betting integrity and monitoring services. A trendy choice is the British company Genius Sports. Its advanced technology and massive database manage to monitor the markets offered by bookmakers globally and in real time, involving fixed odds sports betting. That helps identify out-of-line bet volumes and notify the competent authorities.
Monitoring reports assist in investigating suspected cases of manipulation ending up as match fixing scandals in Brazil. They present objective data on the betting volumes of the respective matches, which becomes fundamental for punishing those involved in the manipulation. It would be almost impossible to fight match-fixing without global betting monitoring and sports betting legislation in Brazil.
Brazilian Betting Regulation on Sports Betting
According to the Manssur proposal for a safe and regulated sports betting act, the regulations will require betting sites to be headquartered within the country. That arrangement would facilitate dialogue regarding the tax revenue collection and inspection process with the sector. Domestic business localisation will also help combat money laundering within the industry.
Manssur also indicated the need for technological solutions provided by foreign companies to effectively scan for illegal offerings and match-fixing, where suspicious bets are to be blocked. Still, the four-year limbo with the Brazilian betting regulation is ongoing. The Senate passed Federal Law No 13,756 in 2018, with the SECAP responsible for consulting with the industry and creating the regulatory regime for betting in Brazil.
For SECAP’s proposal for an online sports betting regulation in Brazil to become law, the president was required to sign off the final regulations. Instead, he opted to leave them without confirmation, effectively vetoing them. That left a great deal of obscurity in the future of Brazilian sports betting, even though match-fixing scandals have cleared the path to Brazilian betting regulations.
FAQ
The topic related to sports betting legislation in Brazil is dynamic, and we are here to answer all your questions. We have included the most popular inquiries involving match fixing scandals in Brazil and related government measures. Take a look at the short but informative FAQ section to find your answers without wasting any time.
1️⃣ Is sports betting legalised in Brasil?
Not yet, which makes Brazil's unregulated sports betting market the main reason for so many match-fixing scandals. There is an indication for a safe and regulated sports betting act, but some milestones prevent it from happening. Still, legislation is in motion that will help with the process.
2️⃣ Can I bet on sports in BRA?
You can, but only if you use offshore platforms to do so. There is a proposal for Brazilian sports betting legislation that aims to regulate fixed odds sports betting within Brazil. If it passes approval, the local businesses will be able to provide such services legally and with extra security.
3️⃣ How to prevent match-fixing in Brazil?
Given the officially unregulated sports betting market in the country, there are some measures by the local football federations towards preventing illegal fixed odds sports betting. They go for monitoring services by dedicated offshore companies with an impeccable reputation in observing the markets.
4️⃣ What sport has the most match-fixing in Brazil?
The country has a wide range of sports, but the sector with the most illegal actions and related to numerous scandals is football. There are a lot of leagues and teams with many low-paid players, providing the perfect environment for illegal activities.
5️⃣ Is there a regulatory regime on sports betting in Brazil?
There is an idea of how to regulate the gambling market to prevent illegal bets and fixed games. The Brazilian betting regulation proposal covers tax revenue, localisation, money laundry combat, and more. The wheels are in motion with Federal Law No 13,756 and the SECAP in 2018.
