More oversight in Brazil needed to combat illegal gambling commission finds
According to the Commission on Science, Technology, and Innovation of the Chamber of Deputies illegal betting remains a significant problem in Brazil, creating unfair competition, tax evasion, consumer protection issues and poses a significant risk for the manipulation of sports results.
According to the Commission on Science, Technology, and Innovation of the Chamber of Deputies illegal betting remains a significant problem in Brazil, creating unfair competition, tax evasion, consumer protection issues and poses a significant risk for the manipulation of sports results.
During a public hearing on the issue lawmakers and government officials discussed increased oversight of illegal betting websites. The national secretary for Sports Betting and Economic Development of the Ministry of Sports, Giovanni Rocco Neto advocated for the use of artificial intelligence to combat illegal sites.
“We are developing an AI system to monitor the flow of odds so that when there is a sudden drop, we can identify potential indications of result manipulation,” he said.
As reported by the Chamber of Deputies News Agency, Fabio Macorin, the undersecretary for Monitoring and Oversight of the Ministry of Finance’s Lottery and Betting Secretariate, stated that despite 25,000 sites already being blocked in Brazil, oversight needs to be more effective and involve other countries.
“Brazil cannot request the blocking of sites hosted in ‘cyber havens,’ nations that impose no limits on internet services,” he emphasized.
Edson de Holanda, a member of the board of directors of the National Telecommunications Agency (Anatel), presented a proposal to enhance oversight.
“Control needs to be implemented through CDNs [content delivery networks]. This would facilitate action against illegal sites,” he commented.
The debate was requested by Deputy Fausto Pinato.
Illegal gambling remains a huge problem in Brazil with lawmakers trying to find ways to combat the issue. In November Rocco, argued that the government is still playing catch up in its fight against illegal gambling due to the delays in regulation under the previous government. According to Rocco, in this regulatory process, implemented at the beginning of President Lula’s government, “we had the task and mission to regulate this market, which is considered the second largest betting market in the world. We are currently second to the United States if we add both legal and illegal flows. This regulation led to the creation of these numerous illegal sites, resulting in a loss of control over Brazilian betting and financial dependence of football teams on sponsorships,” he said.
Rocco made his statements during a discussion on the measures aimed at ensuring legal security and protecting consumer rights in the fixed-odds betting market. The public hearing in November was requested by Deputy Daniel Almeida. In his justification for requesting the hearing Almeida also highlighted that betting has been occupying an increasing space in the Brazilian market, “requiring the Legislative Power to establish regulations that ensure not only legal security but, above all, the preservation of consumer rights.”
