Brazil’s IBJR gears up for sports betting launch with IBIA membership

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The Brazilian Institute of Responsible Gaming (IBJR) has penned a deal with the International Betting Integrity Association (IBIA) to protect the integrity of Brazilian sports as the country prepares to open up its regulated sports betting market.

Both parties will collaborate to “develop activities that reinforce monitoring against match-fixing and reliability in sporting events and online betting” across the country. 

Responding to the arrival of sports betting regulation in Latin America’s largest country, the partnership will endeavor to prevent any manipulation of matches. IBIA members will leverage data to use in evidence in any such integrity investigation. 

IBJR’s CEO, André Gelfi, stated: “Sector regulation is essential to increase the authorities’ monitoring and collaboration actions to curb match-fixing schemes, protecting sports betting companies and Brazilian bettors. To that end, we have already introduced IBIA representatives to the key authorities so that closer cooperation can be established to tackle the issue effectively.”

Research from H2 Gambling Capital has estimated that Brazil’s currently unregulated market grew by 44.4% last year, reaching BRL 4.5bn in GGR. This is expected to reach BRL 9.2bn by 2027.

Consequently, the two parties have identified the requirement to protect sporting events from manipulation as the market more than doubles in less than four years. 

Khalid Ali, CEO of IBIA, said: “IBIA is delighted to reach this important agreement with the IBJR. It is clear from our conversations that we share the same values and goals for the Brazilian sports betting market. 

“That prioritizes the integrity of the betting product and the protection of consumers and sporting events in Brazil. We will now be seeking to explore joint projects that progress those important objectives.”

Brazil regulations arrive as Lula prepares to sign off

As exclusively reported by SBC Noticias last week, the Ministry of Finance explained that it was finalizing the details of the sports betting regulations. 

Amending Law 13.758/2018, the Ministry of Finance will reiterate the proposed 16% GGR tax and player prie tax of 30%, but will change the redistribution methods. 

Of those funds collected, 18.13% will be used to cover the maintenance costs of the lotteries, a tax of 43.35% for the payment of prizes and income tax payments, whilst 0.5% will be earmarked for the National Health Fund and a further 0.5% will provide funding for the Ministry of Tourism.

Another change is that soccer clubs will materially benefit from sports betting, as 22% of revenues will be given to either clubs or leagues for the use of their IP and branding. In a major win for the sports teams, soccer clubs will receive an additional 1.5% for broadcasting rights and sales from the country’s instant lottery operator LOTEX

The documents obtained by SBC Noticias read: “The fixed quota lottery will be granted, permitted, or authorized by the Ministry of Finance and will be operated exclusively in a competitive environment, with no limit to the number of concessions, with the possibility of being sold in any physical and virtual distribution channel.

“The Ministry of Finance may, in the exercise of its capacity to control, request technical, operational, economic, financial, and accounting information from the subjects involved in the activities carried out, legally guaranteeing the secrecy and protection of personal data of the information received, when appropriate.”

Whilst a significant update in Brazil’s sports betting regulation, there is no indication of a date that President Lula will pencil the regulations into law, but it is reported that he is in favor of this framework.