How Gambling Companies Can Quickly Comply With of Brazil’s New Regulations

Sports betting in Brazil has been undergoing a much-anticipated regulatory process, as the country seeks to formally regulate gambling. This represents a massive opportunity for international bookmakers, due to Brazil's vast size combined with enormous, untapped potential. With a population of over 200 million people and a tremendous love and enthusiasm for sports among its populace, Brazil is an enticing market for gambling operators. 

However, any sports betting company coming into the country must be able to quickly adapt to these regulations, or face compliance repercussions and potential loss of clients. Here are just some of the regulatory requirements operators must comply with

Money Laundering Prevention

‍Operators must have in place policies and procedures to prevent money laundering, financing of terrorism, and proliferation of weapons of mass destruction. This means having the ability to cross-check if users are on PEP (politically exposed persons) lists, any restricted lists or on a country’s sanctions list. Then such people can be rejected or blocked from onboarding as required by law.‍

Accurate Identity Verification

The betting platform must authenticate access by any bettor registered in the system using a username and password combination or via biometrics. If the system does not recognize the username and/or password when entered, an explanatory message must be displayed to the bettor, asking him to re-enter the information.

‍Re-authentication After Inactivity

The betting system must require a new authentication process from the bettor after a period of 30 minutes of inactivity on a device, with no bet or financial transaction being allowed until the bettor is authenticated again. 

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Responsible Gambling

‍Operators must have the proper controls in place to promote responsible gambling. This includes the prohibition of children under 18 years of age, restriction on people related to the operation, regulatory agents and influencers at sporting events, and preventing access for those with pathological gambling disorders.

Sports betting operators should also offer a reliable means for users to self-exclude, which is crucial in the prevention of problem gambling. 

Match Fixing and Bet Integrity

The government is requiring all betting platforms to have protocols in place to ensure the integrity of betting and prevention of match-fixing and other fraud. The effectiveness of these policies will be evaluated according to guidelines established by Ministry of Finance regulations.

Geolocation Capabilities

The betting system must detect the use of programs that have the ability to bypass detection of the bettor's location, such as remote desktop software, rootkits, virtualization and any other programs, and block attempted location data fraud before completion of each bet.

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Ensuring Compliance with Regulations 

Complying with the new regulations may seem a daunting task, but sportsbooks can ensure they are compliant by implementing the following proper identity verification and fraud prevention protocols. 

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Robust identity verification enables organizations to increase user acceptance while reducing fraud and operational costs by implementing tools such as face match, facial biometrics, and document verification, in order to accurately confirm user identities to establish that the users are really who they claim to be. 

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Bookmakers must ensure they can safeguard their platforms from all types of fraud that target the sports gambling space. By combining the right tools and processes, along with continuously enhanced AI algorithms and ML models, sportsbooks can accurately  validate identities, manage new and old users, improve risk decisions, and ultimately detect and stop fraud attacks early on before they can harm the business or customers . By implementing the proper tools and tactics, you bookmakers protect platforms from fraudulent activity and uphold the quality of the user experience.

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How Caf Can Help

As a Brazilian-born and headquartered company, Caf are experts in the regulated sports betting in the country, and we understand the opportunities and challenges of the Brazilian market like no one else.

By partnering with Caf, you can be assured of not only complying with all regulatory statutes, but also be able to onboard new customers quickly, combat fraud and boost revenue.

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Our solution for gambling operators, BetID, has a range of features designed to help operators succeed, including:

• Regulatory Compliance: Identity verification processes that aligned with legal requirements.
• User Experience: The right balance between safety and practicality so as not to cause too much friction
• Fraud prevention: Suspicious activity detection to protect your business and legitimate users.

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‍Click here to schedule a demo now