The sports betting market in Brazil is on the brink of transformation with the government poised to regulate the industry. This new legislation will legalize and regulate sports betting, opening up exciting opportunities for both bettors and sportsbooks. It's crucial for everyone involved to be prepared and compliant with the new rules to ensure transparency and security of gambling platforms.
Brazil represents a great opportunity for bookmakers. However, sports betting operators that want to do business in Brazil will have to know the ins and outs of the country’s regulations related to gambling.
In particular, there are a few key aspects regulators in the country will be keeping a close eye on.
Right To Bet:
The right to bet securely and responsibly is fundamental. That means sportsbooks must have systems in place that guarantee secure access for verified users, safeguarding their right to participate in gambling activities without compromising their security.
Restricted List:
There is one exception to the Right To Bet rule: the government has proposed a restricted list for those prohibited from engaging in sports betting. This is a wide ranging list and includes government workers involved with gambling regulation policy, those involved in professional sports, legal entities and many more. This is to prevent fraud committed by insiders, such as match fixing.
Bookmakers entering the Brazil market must ensure they are not onboarding as customers any persons on these restricted lists, and need solutions in place to ensure those on this list are identified and prevented from betting.
Bonus Abuse:
Bonus abuse is a common type of fraud committed against sportsbooks and one that is highly prevalent when sports betting first becomes legalized in a country. In order to attract new customers amidst a crowded market, sportsbooks will often offer special promotions, such as free bets or deposit bonuses for new customers. Bad actors will exploit this by creating many accounts with different email addresses and claim these offers and cash out, with no intention of ever placing a bet.
Sports betting operators need to be able to detect and stop these attacks.
Self-Exclusion:
Empowering users to self-exclude is crucial for responsible gambling behavior. Sports betting operators should offer a reliable means for users to self-exclude, ensuring they adhere to their decisions even across multiple platforms.
The Power of KYC
To meet these and other requirements, sports betting operators will need robust Know Your Customer (KYC) processes and protocols in place. Here are some steps businesses can take when it comes to creating an optimal KYC experience.
Onboarding Journeys
Businesses need to deliver a seamless onboarding/registration process for new customers. They should have the ability to create custom workflows that can deliver personalized user experiences. For speedy user onboarding, businesses need technology that can compare customer information against identity documents or relevant databases in real time in order to simplify and streamline the KYC process.
Document Verification
The right technology should make the document verification process easier and more efficient for companies by extracting all relevant data for analysis. This eliminates the need for manual user input, which can be frustrating for consumers and if too time-consuming, may cause them to abandon the process. AI can be used to automatically verify the accuracy of most documents, and unusual or difficult cases can be shifted to human experts for further review.
Cross check with identity verification and fraud databases
It’s vital for businesses to cross-check the data they receive from each user against trusted data sources and fraud databases to validate the information provided. You should have the ability to query all relevant data sources – both public and private – to ensure user data can be verified and any false information or fraudulent registration attempts are caught.
Compliance checks and ongoing monitoring
For regulated services, all potential new users must be checked as it pertains to different compliance regulations – such as if they are on PEP (politically exposed persons) list, any restricted lists or on a country’s sanctions list. Then such people can be rejected or blocked from onboarding as required by law. Businesses also need ongoing screening of already onboarded users to monitor for any status changes or suspicious or anomalous behavior and stop it.
Caf: Your Partner in Brazil
As a Brazil-born and headquartered company, we know the ins and outs of local laws and regulations in the country. We offer a range of features that make for an ideal solution for sports betting operators looking to comply with the new regulations in Brazil. These include:
- Real-time verification: Caf can help your company to verify the identity of customers in real-time, allowing sports betting operators to quickly and securely onboard new customers and reduce fraud e.g. bonus abuse
- Robust security: We implement advanced security measures to ensure that customer data is kept safe and secure.
- Scalability: The Caf platform is able to scale to meet the needs of sports betting operators of all sizes, from small startups to large multinational corporations.
- Compliance: Our solution is designed to comply with the latest regulatory requirements, including the new regulations around sports gambling introduced in Brazil.
- Brazil-Native: Our company was started in Brazil and remains headquartered here, with offices in Sao Paolo, Rio De Janeiro, Venancio Aires and elsewhere in the country.
If you’d like to learn more about how Caf can help you thrive in the exciting Brazilian sports betting industry, talk to an expert today.
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