New Brazilian Ordinances Demonstrate the Need for Accurate Doc Verification in Sports Betting

This week, the Brazilian Ministry of Finance published several ordinances pertaining to regulated sports betting in the country. The regulatory process has been a long and winding road so far, but these latest developments move us one step closer to fully regulated online gambling in Brazil.

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The ordinances deal with monitoring and inspection rules, as well as how gambling operators should support responsible gaming and how sanctions and penalties will be levied against noncompliant operators. 

These are exciting times as regulated betting in Brazil moves one step closer to reality. This presents a massive opportunity for gambling operators – Brazil is the sixth most populous country in the world and has a sports-mad population. 

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Here’s an overview of what the latest ordinance means for gambling operators looking to do business in Brazil.

Accurate Document Verification

These latest ordinances demonstrate how crucial it is for gambling operators to have accurate document verification capabilities in place, For example, every platform must “accurately verify the identity of the bettor during registration” and the means of doing so involve verifying a recognized identity document, which the regulators define as either a National Identity Card; General Registry; National Driving License  or a valid Passport.

Doing so can be extremely difficult for betting platforms as document fraud is rampant and identity documents are easily manipulated. In fact, Caf data shows that document fraud is on the rise in Brazil. Gambling platforms must have the technology and expertise in place to accurately verify identity documents, or risk fines and possibly sanctions from regulators. 

Promote Responsible Gaming

Regulators are putting the onus on gambling platforms to identify and stop problem gaming and prevent those with gambling addictions from betting. Among the guidelines laid out by these latest ordinances include “being diligent in structuring the betting system, ensuring responsible gaming, preventing addiction and pathological gambling disorders, ensuring compliance with prohibition of betting by those under 18, and promoting awareness through educational campaigns”

They also must inform the bettors at the time of registration, of the risks of gambling, and must make it possible for bettors to request self-exclusion.

Integrity of Wagering

Sports betting operators must also play a role in ensuring the integrity of every bet and preventing fraud that would imperil this, such as match-fixing. This means operators have to identify and excuse from betting any persons whose presence on the platform could damage the integrity of sports betting, including:

• Any owner, administrator, director, person with significant influence, manager or employee of the operating agent
• Public agent with duties directly related to the regulation, control and supervision of activity within the scope of the federative entity within whose staff he exercises his powers;
• Person who has or may have access to computerized fixed-odd betting lottery systems;
• Person who has or may have any influence on the outcome of a real sports-themed event subject to a fixed-odd betting lottery

Regular Inspections

Any operator or service provider for the operator may be subject to an inspection by regulators, which may include “access to data and information systems, documents, papers and books of records” The operator will have to comply with the request within ten days from receipt of the formal letter of inspection.

Ensure Compliance, Fight Fraud and Win Customers with Caf

In order to comply with these and other regulatory statutes set forth by the Brazilian government, operators need a partner that can enable them to accurately identify every user coming to their platform, without disrupting the good user experience. 

Caf, a Brazil-native company, offers the only end-to-end identity verification solution specifically for the gambling and sports betting industry. Our Bet.ID platform has everything operators need in one place to ensure compliance and stop fraud. 

With the ability to access a vast repository of public and private databases, Caf quickly and accurately validates thousands of unique documents. Furthermore, the latest threat intelligence from Caf’s client network enables its partners to identify fraudsters engaging in online gambling fraud.

Caf’s user-friendly, intuitive and accurate platform enables operators to onboard more users quickly and securely, without degrading the user experience.  Caf offers the flexibility to quickly build and deploy multiple identity and authentication workflows that helps fight online gambling fraud deterministically, while maintaining a superior user experience and ensuring compliance with various global and local regulations. Ready to win in the highly competitive online gambling arena? Book a demo now.

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