VIE 3 DE MAYO DE 2024 - 12:35hs.
Opinion – Milton Jordão, lawyer

Sports betting and results manipulation: All in the same bag?

The lack of regulation of sports betting always creates doubts about the fairness of the activity in Brazil and the possibility of manipulation of results in matches and championships. Although it is a fallacy, the practice is always in the mind of those who do not understand how the activity works. To bring clarity on the subject, lawyer Milton Jordão addresses the issue in an opinion article in Lei em Campo.

Often the unknown is labeled “evil”. We choose to impose social rejection, causing their marginalization. The development of this process can be identified in countless corners of life in society. Sometimes, the law serves to reinforce the social repudiation, labeling as a crime (criminal infraction) or illicit act (civil) the behavior considered as deviant.

Currently, there is a constant debate in the sports world about the regulation of sports betting, at the same time that doubts abound in relation to its acceptance with the same revelation of the scope of manipulation of results. Despite the different themes, a kind of pernicious symbiosis takes place, as if one does not exist without the other.

 It is impossible not to recognize that the manipulation of results will end up maintaining points of intersection with sports betting; however, it cannot be understood as a consequence or a necessary consequence of the adoption of this business opportunity in sport.

There is, in fact, a gray area in this debate, especially nowadays, when the discussion to be started is influenced by a strong hint of irrational conservatism, a deliberate blindness to the true demonization of the practice of sports betting as something licit.

The act of betting is characteristic of life in human groups, it is a competition, which may be based on the production of determined results with or without the control of the bettors. Let me explain: two people can bet something on a race between them; as well as, they would bet the same prize if it rained on the weekend or not. Impossible, therefore, to contain that of life in society.

Sports betting has grown exponentially, even surprising during the pandemic in 2020 – this year it was valued in the global market at US$ 59.6 billion. Its scope is very wide, it can be seen as entertainment, as a way of increasing income and even as a means of socializing with friends. In the country, it is projected to have a billionaire market, despite the shortcomings in its regulation.

Despite Law No. 13,756/2018 bringing the legality of sports betting to the national legal system, its regulation remained, so that one could truly speak of a legally protected market, establishing rights and duties, creating obligations and, above all, generating revenue for the treasury.

There was a forecast that in two years a decree would be produced, which would be the result of debates between stakeholders and the Brazilian State. Indeed, some debates took place, here and there; however, always bumping into an (empty) discourse that betting could imply the plague of ludopathy, mainly, the fear of manipulation of results, fear of not containing such fraud. In this way, the first two years were extended to two more.

It arrives at the end of another biennium without the Federal Government having had the courage to apply the law and take an important step towards the control and legalization of the betting market. Despite the fact that several bookmakers have already stamped their brands on the main clubs’ jerseys in the country (in Serie A of the Brazilian football championship this is verified in 14 of the 20 participants), nothing concrete has been produced.

Even in the face of this paralyzed scenario, investment in sports betting did not stop growing and began to bring together serious companies in the market with others of dubious origin and conduct. In this environment, gamblers are lost, as they cannot find support in the State, if necessary. After all, there is no legal framework to protect such relationships.

On the other hand, with deregulation, those who strive to tread the paths of criminality find fertile ground in the manipulation of results and tax evasion, for example. Although the Fan Statute provides for the first action as a crime, there is no structure within the scope of state criminal prosecution bodies for them to understand the phenomenon and manage to perform their expected role well.

Furthermore, in the structure of the sports system there is no dialogue, no building of bridges between federations, clubs, referees and athletes, to effectively prevent and repress the manipulation of results.

The disconnection between stakeholders is fuel for the manipulation to silently spread and contaminate, especially, invisible games; gaining, every day, more strength and supporters. It won't take long for the big matches of the biggest national championships to be reached and, with that, we suffer from distrust in the results, thus having repercussions on investments in sport.

Therefore, it is necessary to act and understand that everyone is part of the same ecosystem. Its sustainability will depend on harmonization and preservation.

And how would that happen?

From the point of view of government actions, it is necessary to face and advance the issue, promoting the regulation of sports betting. Bring legal edict that is clear and well defined. In particular, creating compliance rules for the sector, such as creating a whistleblower channel, requiring the creation of a code of ethics and business structuring that includes its own department - the mere existence of ombudsmen or good governance and management tools cannot be satisfactory, it is necessary to go beyond submitting to a culture of greater control of the activity.

It is also important to qualify and develop groups in the prosecution bodies that know the market, so that the best repressive responses are offered, when necessary, both in the criminal and civil fields.

The State must understand the market and its players not as adversaries or subjects, however, see them in a horizontal perspective, because this will make a difference in consolidating the business environment, avoiding tax evasion or concealing irregular practices, or even stimulating – indirectly – their keeping them hidden, outside the country and/or in illegal markets.

But, that won't be enough.

The high performance sports system that is achieved by sports betting must be aware of this reality and act. Investment in compliance/integrity departments is urgent, so that the respective sectors of sport administration entities (confederations/federations) and state activity control bodies can be dialogued.

Clubs, referees, athletes and federations are key to combating match-fixing. And, with that, not only guaranteeing fair play, but also transmitting security to the fan, society and, also, to the sports betting market.

The current stage does not convey to the final consumer (gambler) that the activity is 100% safe and this needs to change, so that this market, which without any administration/regulation, produces abundant dividends, can, in an organized way, boost new business, turn each more and more values.

In addition, cultivating the deviant image of the bookmaker or associating it with manipulation of results is an inconsistency and irrationality.

The one that loses the most with the lack of adequate legal treatment is the bookmaker, which has no way to appeal, nor organized and institutionalized means of combating manipulation.

The myths about bookmakers and game manipulation will always hover as long as cowardice prevails in their proper confrontation. The flow that is given to empty moral discourses is completely punished as it is understood that regularization is not synonymous with freedom without duties. On the contrary, it is certain that the control will guarantee greater respect for the law.

Likewise, it can be said that the manipulation of games suffers from a fair clash, despite, today, the isolated efforts that are collected in one or another sports administration entity. What is lacking is the creation of a combat network, the use of adequate tools and dialogue between the world of sport, the State and the market that exploits sport.

The lethargy experienced does not allow creating a healthy and safe environment for the growth of the sports betting market and ensuring greater control of the health of the results. However, it must be agreed that there is an alternative, which is just everyone's political option.

Act or wait?

This is the dilemma that must be faced. Come on!


Milton Jordan
Lawyer, Master in Social Policies and Citizenship at UCSal/Bahia and Master's in Sports Law at the University of Lleida/ESP; director-treasurer of CAA BA; former OAB/BA Sectional Councilor; member of the Special Committee on Sports Law of the National Bar Association; member of the Sports Law Commissions of the OAB/BA and OAB/SE; president of the Sports Law Institute of Bahia (IDDBA); member of the Brazilian Institute of Sports Law (IBDD); president of the STJD of Judo and of the TJD of Karate in Bahia; former attorney at the STJD do Futebol; author of works and legal articles in the field of Sports Law. He writes in Lei em Campo in the column “Direito no lance”.


Source: Lei em Campo