GMB - Could you explain what your research work is and how important it is?
Ian Cook - Research work starts from something bigger, which is risk management. Within Kroll's approach, we work with detection solutions - preventive and reactive. Customers often come to us for assistance in investigating fraud or corruption. These cases still represent the bulk of the work and highlight the behavior of most companies in Brazil, ie there is no strong corporate culture focused on prevention.
However, we always recommend investing in preventive solutions. Knowing the reputational risk of your business, for example, can avoid major problems in the future, and reduce the legal and reputational risk of businesses. In a new market for Brazil, such as betting, it is important to know the risks inherent in the activity and to know how to mitigate them.
Today, many sports betting companies have appeared as sponsors of clubs and competitions in Brazil. In your view, what is the main characteristic of this movement?
This movement is similar to what already happens in other markets, such as in England. There is an obvious connection between clubs and championships and the stakes, as the gambler has a clear interest in the sport. From a risk management standpoint, it is important for everyone involved to know the business issues. Both sponsors and the one that is sponsored.
In your opinion, should sponsorship rules from bookmakers to clubs and sports institutions be part of the current regulation in the country?
Yes. Bookmakers need to know the clubs they are sponsoring (risk factors such as political involvement, debt, lawsuits, etc.) as well as clubs need to know in detail the reputation and history of the potential sponsor. We know of the high risk of money laundering involving betting. Therefore, it is important that the club be confident about the situation of the potential partner.
In European countries, such as England, there is also a very large movement of betting companies sponsoring clubs. What is the main difference from what happens in these countries to the current Brazilian moment and what can we learn from them?
In England, the culture of gambling is widespread in society. People have been around the competition for a long time. As this culture has existed for a long time in the UK, the regulation is very well defined. It is a very well-run sector. In Brazil, the possibility of betting on sports is something very new and still has a way to go to be implemented and regulated.
Source: Exclusivo Games Magazine Brasil
