Zona de Azar Brasil – Brazil: Artificial Intelligence to Ensure the Integrity of Sports Betting

Brazil.- November 12, 2024 www.zonadeazar.com At the end of October, Brazil’s Ministry of Finance and the International Betting Integrity Association (Ibia) signed a cooperation agreement. The goal is to ensure the integrity of sports betting in the country as betting companies prepare to comply with new regulations effective from January 1, 2025. From that date, rules requiring these operators to be licensed in Brazil and to pay taxes in the country will come into effect.

Ibia is a nonprofit international organization that, since 2005, has partnered with sports bodies, regulators, and law enforcement agencies, monitoring over $300 billion annually in bets placed across more than 125 brands. It has information-sharing partnerships with major global sports organizations, including the Fédération Internationale de Football Association (FIFA), the Union of European Football Associations (UEFA), the International Tennis Integrity Agency (ITIA), and the International Olympic Committee (IOC).

As the largest entity of its kind worldwide, it will collaborate with the government in Brazil, where, according to estimates, up to $34 billion in betting volume could be generated by 2028. The Ministry of Finance projects that tax revenue could reach R$ 3.4 billion annually with the implementation of these regulations.

According to André Gelfi, president of the Brazilian Institute of Responsible Gaming (IBJR), the collaboration is positive, as member companies of the organization, which represent 75% of the Brazilian betting market, are also affiliated with Ibia. The IBJR advocates for fair play and responsible entertainment to ensure the prevention and combat of fraud, match-fixing, and money laundering.

“The integrity of the game is essential and non-negotiable. Brazil’s largest betting companies actively work to identify possible fraud, in line with practices in other countries, to curb this illegal and immoral behavior. We advocate and work towards fair play and healthy entertainment,” says the president, André Gelfi.

NEW RULES

The IBJR, the leading representative of sports betting operators in Brazil, was established in March 2023 to help create a secure regulatory environment for consumers, a sustainable one for the industry, and a healthy one for the Brazilian economy. According to the president, the institute aims to follow international practices strengthened by the Ministry of Finance’s regulation effective from January 1.

The new rules require bettors to be transparently informed of their winnings. Companies will be obligated to pay at least 85% of collected bets as prizes. Additionally, only companies that undergo independent audits, which generate certification, can operate in the country using the “.bet.br” domain.

Facial recognition technology will also be implemented, aimed at preventing minors from betting on the platforms, which is prohibited by law.

Audit companies will also verify that betting companies comply with the requirement to feed the Betting Management System (Sigap), a technological solution developed by the Ministry of Finance for the regulation, monitoring, and oversight of this market, with information daily. The aim, supported by IBJR, is to detect suspicious operations and even compulsive behavior among players.

According to Gelfi, the new rules and the agreement with Ibia strengthen the integrity of the sector’s activities and accelerate the adoption of established European technologies for game monitoring, already used by IBJR-associated companies in Brazil.

“Unusual patterns of movement, which may indicate some form of match-fixing, are flagged through artificial intelligence sweeps. Once identified, authorities and sports entities can be alerted.”

Betting in Brazil undergoes sweeps to detect unusual patterns

Learn how the monitoring and alert network works as an anti-corruption tool capable of detecting suspicious or incompatible activities with the bettor’s profile.

Gelfi states that the IBJR and Ibia share a focus on fighting betting corruption to protect sports integrity — Photo: Disclosure

All transactions made by betting companies generate data that can be monitored with technology, especially artificial intelligence (AI). The member companies of the Brazilian Institute of Responsible Gaming (IBJR), which often operate in other mature regulatory markets, replicate strategies already used abroad.

“Our members share a common goal of combating corruption in betting to protect the integrity of sports and their businesses. Ibia is the global voice on integrity for the licensed betting industry,” says the president, André Gelfi.

According to the executive, the solutions used by these companies help identify and prevent, for example, sports match-fixing, suspicious movements, or incompatible behavior with the bettor’s profile, leading to access blocks and other restrictions.

According to Ibia, daily bets undergo sweeps to detect unusual patterns that could indicate some form of manipulation.

When a case is detected, an alert is triggered for further investigation and notification of authorities and sports organizations.

These technological tools are also used in countries with strict sector regulations, such as the United Kingdom, Italy, and Australia. They were used, for example, to detect activities of Brazilian soccer player Lucas Paquetá, a member of the British West Ham team. He is suspected of deliberately receiving yellow cards in four Premier League matches, England’s top division, between November 2022 and August 2023. These tools were also used in the ongoing investigation involving Flamengo player Bruno Henrique. The same technology is available in Brazil through IBJR affiliates.

“We believe that ensuring the reliability and credibility of sports event data is crucial. There is a clear benefit to every party involved in the data supply chain in ensuring that such data is a product of high levels of accuracy and transparency,” concludes Gelfi.

For more information, visit https://ibjr.org/

Edited by: @_fonta www.zonadeazar.com