Victoria Fernandes, Head of Legal at Kambi, expresses her concerns regarding the current state of gambling and betting in the country and its repercussions in the media, highlighting the urgent need for regulatory action. Unlike other countries that have successfully regulated their iGaming markets, the lawyer believes that Brazil's prolonged delay in establishing rules has allowed for rampant and unmonitored operations.
I have observed numerous headlines about the lack of control over gambling and betting in Brazil. It is an extremely serious and worrying situation that needs to be addressed with due seriousness by the country's regulators. Unfortunately, Brazil finds itself in a perfect storm unparalleled in other parts of the world.
As my area of expertise is sports betting, I will focus on that. My main responsibility over the last four years has been to understand the regulation and industry in various countries where we operate. When I say that the situation in Brazil is unparalleled, I base this on that experience.
In recent decades, many countries have regulated their sports betting markets, allowing private operators to develop their activities competitively and under the supervision of a regulatory authority. These authorities, in addition to being concerned with revenue, also focus on public health and the prevention of match-fixing. Before this, these markets were mostly monopolized or the activity was prohibited.
The transition in more mature markets occurred when the internet already existed, but it still did not dominate other forms of entertainment and information as massively as we see today. Countries that regulated more recently did so more quickly and with tighter control, limiting the market's expansion before the regulatory system was in place.
Regulation, even if not very restrictive, inhibits certain behaviors, as the general legal framework of a country can be used against abuses.
In Brazil, the perfect storm formed when the country legalized sports betting in 2018, but took almost six years to implement a system of rules and licensing. This allowed the market to operate without control. Other factors of the perfect storm include high internet penetration, intense use of social networks, low income, and low education levels.
This resulted in absolutely irresponsible marketing, associating sports betting and gaming with enrichment and investment. The result is what we are seeing now.
This situation raises important questions about the responsibility of influencers and teams regarding their sponsors and about the inertia of the public power. However, the regulation of sports betting, which has proven to be coherent, must continue.
The total prohibition of sports betting is impractical, considering the reality of the internet and the experience with physical gambling points like the "bancas do bicho". This genie is out of the bottle and it's not possible to put it back. The way to resolve this mess is through quality regulation, dialogue with the industry, and constant supervision.
I sincerely hope that Brazil does not regress and follows the example of major economies around the world. The solution lies in moving forward responsibly and not in regressing.
Victoria Fernandes
Head of Legal at Kambi / Regulatory compliance
