With the requirement for user verification, the new legislation seeks to prevent manipulations, protect vulnerable groups, and curb illegal practices. Digital identity management tools and anti-fraud analysis play a key role in this process. In an article on the tech portal tiinside, Danilo Barsotti, CTO of idwall, explores how technology strengthens compliance and contributes to a more reliable and responsible environment.
The numbers highlight the growing interest of Brazilians in sports betting: according to a report by the financial firm XP, this market moved about R$ 13 billion in 2023. With the regulation of the sector, through Federal Law No. 14.790 and related ordinances, only companies authorized by the Ministry of Finance will be able to continue operating in the country from January 1, 2025. The deadline for technical adaptation of companies that have requested authorization is until December 31 of this year.
Among the points addressed, the obligation to verify the identity of bettors is one of the highlights, especially for its important social role – as it inhibits identity fraud and the involvement of users who cannot legally bet, such as minors and people who have committed financial crimes. Compliance with the regulation also prevents the participation of individuals who may influence the sports outcome, such as managers, coaches, trainers, and members of the sports technical committee, as well as athletes participating in competitions organized by entities of the National Sports System.
Applicable at all times of the journey, anti-fraud solutions and digital identity management contribute to the compliance of the sports betting segment. In onboarding, transactional operations, and monitoring and prevention flows, the requirements of the legislation are met through mechanisms of biometric validation, document verification, verification of registration information, email and phone checks, and probing of sports connections, among others.
In the identity ecosystem of idwall, the prior analysis of users and their relevant information can be verified via Background Check, which investigates from email, phone, CPF, and age to consultations of information in public and private databases. For document verification, there is OCR (Optical Character Recognition) technology to automatically extract and transcribe data and detect forgeries. Another mechanism is Documentoscopy, which combines Artificial Intelligence and specialized human analysis to validate documents.
Verifications and data crossings enter the facial recognition of idwall, as in Facematch, which provides the similarity index between faces from the comparison of two images of a person. The proof of life (Liveness) uses algorithms that seek to determine if the user is who they claim to be, or if it is some fraudulent strategy, such as masks or deepfakes.
The Law of sports betting in Brazil brings necessary regulation to a sector in expansion in Brazil. The movement protects the bettor legally, mitigates fraud, and ensures the right of people to express their will in a healthy way. Technology is once again an ally of society in building a reality with more trust.
Danilo Barsotti
Director of Technology at idwall
