The fight against manipulation of results in sports has been a mantra since the regulation of sports betting in Brazil. In an article for Lei em Campo, the lawyer and director of the Brazilian Association for the Defense of Sports Integrity analyzes the main topics involving actions to mitigate the problems, including regulation itself, awareness, and sector oversight.
When thinking about sports integrity, we are seeking the unpredictability of the outcome. That is, the result of a sports activity cannot be anticipated accurately.
Curiosity about what is to come is what arouses so much interest in sports. And that is why we are all here. To fight to preserve the magic of sports.
The manipulation of sports results essentially occurs through two paths:
(i) doping: which enhances the natural result of the athlete, making them perform above their normal level; and
(ii) behavioral manipulation: which occurs when an athlete or team performs below expectations, the athlete adopts an unnatural conduct by provoking a card, or in the case of the referee, he makes an unfair decision with the purpose of influencing the result, among other possibilities. To combat these problems, three fundamental measures must be adopted:
Strict regulation:
Implementation of clear and effective rules to govern sports practices, ensuring that all parties involved (athletes, coaches, referees, organizers) follow ethical standards.
Monitoring and combat:
Conducting rigorous and regular anti-doping tests to ensure that athletes do not use prohibited substances to enhance their performance.
Implementation of monitoring systems to identify suspicious betting patterns that may indicate manipulation of results.
Severe punishments for offenders, including suspension or banning from competitions.
Awareness:
Promoting educational programs for athletes, coaches, and other stakeholders about the risks of illicit practices, such as doping, manipulation of results through illegal betting.
Awareness campaigns for the public about the importance of integrity in sports.
These measures, when implemented in an integrated manner, help maintain sports as fair, safe, and free from corrupt practices, preserving public trust and the essence of the sporting spirit.
Currently, however, it seems that people ignore these three fundamental pillars: (i) regulation, (ii) monitoring and combat, and (iii) awareness.
Regarding the betting market, what is observed at the moment is a demonization of the sector. Mainly, there is talk of increasing taxes, restrictions on advertising, and even banning the activity, aiming to avoid problems related to the physical and financial health of people.
This is not the correct path. Does it make sense to ban an activity that was legalized in 2018 and revalidated by the National Congress in December 2023, that is, less than 9 months ago? My answer is: it does not make sense.
Banning will not prevent the gaming market from continuing to exist. China, one of the most closed countries in the world, where social media is controlled and gambling is banned, today has the largest betting market in the world. A similar situation is observed in Iran, where religion bans betting, but the country still has one of the most thriving markets.
Even if attempts are made to regulate, ban advertisements from betting platforms, curb the remittance of capital via the Central Bank, and try to take down the sites through Anatel, it will not be enough. It can reduce the impact of betting in our daily lives, yes, it is possible. But it will not solve the problem.
The bettor is already registered on foreign platforms and knows how to bypass georeferencing, using tools like VPN, which makes it appear that the player is located in Spain, for example, when in fact they are in Brazil.
They have methods to send capital abroad without the Bacen being able to block it, and we are not just talking about the use of cryptocurrencies. Even the takedown of sites by Anatel proves inefficient, as soon after taking down one page, the operator can put up another that mirrors the previous one, with just a slight change in the domain, as in the case of Blaze.
People will continue to gamble, to spend part of their income on these services and, even worse, without any security. Without the certainty that the site will pay the promised prize, that there will be responsible gaming rules and limits established and monitored by a regulator, and without information to decide whether they want to play or not, and if so, how much and for how long they wish to bet.
Increasing taxes on the sector will have a similar impact. The higher the taxation, the smaller the prize paid to the bettor. The operator, naturally, will reduce the return margin to preserve profitability and the viability of their operation. With this, companies based outside the country, in tax havens where taxation is null or minimal, will offer larger prizes for the same event, attracting players to the parallel market.
On the other hand, as studies point out, government revenue expectations will be lower, even with higher taxes.
Finally, measures to restrict advertising have already been taken. The Higher Council for Self-Regulation in Advertising – Conar edited in June 2023 Annex X, which specifically deals with the betting industry. The Ministry of Finance, through Ordinance 1.231/24, also addressed the issue, providing rules and penalties for operators who do not comply with the imposed limits, such as the prohibition of advertisements on products intended for minors and the requirement that advertisements be directed to those over 21 years old, among other requirements.
The containment measures propagated by the media, for these reasons, are ineffective. The preservation of people's integrity and sports, as initially stated, should focus in another direction. It should be centered on:
(i) regulation,
(ii) monitoring and combat, and
(iii) awareness.
We already have regulation. We have Laws 13.756/18 and 14.790/23, in addition to more than a dozen ordinances issued by the Ministry of Finance on the subject until July 2024, which should start to have concrete effects from January 2025.
The regulation, it must be said, is adequate, balanced, and should address the externalities caused by the activity, bringing security to the bettor, clear guidelines for the operators, and revenue for the Brazilian government, in addition to generating thousands of direct and indirect jobs.
The resources that will enter the public coffers will serve to finance equipment and assist in the qualification of people to monitor betting. These resources, it is worth remembering, by express legal determination, will also be allocated to mitigate the impact of the activity in the fields of health, public safety, and sports, as well as being allocated in public awareness campaigns.
Therefore, it is observed that, contrary to what has been conveyed in part of the mainstream media, we are not in a lawless land. Many of the speeches are unfounded. The problems pointed out have already had solutions addressed.
Rafael Marchetti Marcondes
Professor of Sports Law, Entertainment Law, and Tax Law. Doctor and Master in Tax Law from PUC/SP. MBA in sports management from ISDE in Barcelona/ES. MBA in sports betting management from Ohio University/USA. Chief Legal Officer at Rei do Pitaco. President of the Brazilian Association of Fantasy Sport (ABFS). Legal Director of the Brazilian Institute for Responsible Gaming (IBJR). Director of Government Relations of the Brazilian Association for the Defense of Sports Integrity (Abradie).
