When we think about sports integrity, we look for the unpredictability of the result. That is, the outcome of a sporting activity cannot be anticipated with results.
A curiosity about what is to come is what sparks people's interest in sports. And that is why we are all here. To fight so that the magic of sports is preserved.
Sports manipulation occurs basically in two ways:
(i) doping: which enhances the athlete's natural result, causing him to perform above normal; and
(ii) behavioral manipulation: which occurs when an athlete or team performs below expectations, the athlete behaves unnaturally by provoking a card, or in the case of the judge, he makes an unfair decision with the purpose of influencing the result, among other possibilities. To combat these problems, there are three fundamental measures to be followed:
Strict regulation:
Implementation of clear and effective rules to govern sports practices, ensuring that all parties involved (athletes, coaches, judges, organizers) follow ethical standards.
Monitoring and combat:
Conducting rigorous and regular anti-doping tests to ensure that athletes do not use prohibited substances to improve their performance.
Implementation of monitoring systems to identify suspicious betting patterns that may indicate match-fixing.
Severe punishments for offenders, including suspension or ban from competitions.
Awareness:
Promoting educational programs for athletes, coaches and other stakeholders on the risks of illicit practices, such as doping, match-fixing through illegal betting.
Public awareness campaigns on the importance of safety in sports.
When implemented in an integrated manner, these measures help to keep sports fair, safe and free from corrupt practices, preserving public trust and the essence of the sporting spirit.
Currently, however, it seems that people ignore these three fundamental pillars: (i) regulation, (ii) monitoring and combating, and (iii) awareness.
Not that it concerns the betting market, what we are seeing at the moment is a demonization of the sector. The main talk is about tax increases, restrictions on advertising and even the concession of the activity, avoiding problems related to people's physical and financial health.
This is not the right path. Does it make sense to prohibit an activity that was legalized in 2018 and revalidated by the National Congress in December 2023, that is, less than 9 months ago? My answer is: it doesn't make sense.
Prohibiting it will not prevent the gaming market from continuing to exist. China, one of the most closed countries in the world, where social media is controlled and gambling is prohibited, currently has the largest betting market in the world. Something similar can be seen in Iran, where a religion prohibits betting, but the country still has one of the most thriving markets.
Even if you try to monitor, ban advertising on betting platforms, send capital remittances via the Central Bank and try to break up websites through Anatel, this will not be enough. We can reduce the impact of betting on our daily lives, yes, it is possible. But it will not solve the problem.
The bettor is already registered on foreign platforms and knows how to steal the georeference, using tools such as VPN, which makes it appear that the player is located in Spain, for example, when in fact he is in Brazil.
He has methods to send capital outside the country without the Central Bank being able to block it, and we are not just talking about the use of cryptocurrencies. Even Anatel's removal of websites proves inefficient, because right after removing a page, the operator can put up another one that mirrors the previous one, with just a change in the domain level, as in the case of Blaze.
People continue to play, spending part of their income on these services and, even worse, without any security. Without the certainty that the site will pay the promised prize, that it will have responsible gaming rules and limits established and monitored by a regulator, and without information to decide whether or not to play and, if so, how much and for how long they want to bet.
Raising taxes on the sector will have a similar impact. The higher the taxes, the lower the prize paid to the bettor. The operator will naturally reduce the return margin to preserve the profitability and viability of its operation. As a result, companies based outside the country, in tax havens where taxation is zero or negligible, will offer larger prizes for the same event, attracting players to the parallel market.
On the other hand, as studies show, the government's revenue expectations will be lower, even with higher taxes.
Finally, measures to restrict advertising have already been taken. The Higher Council for Advertising Self-Regulation – Conar published Annex X in June 2023, which deals specifically with the betting industry. The Ministry of Finance, through Ordinance 1,231/24, also addressed the issue, establishing rules and penalties for operators who do not comply with the imposed limits, such as the prohibition of advertisements on products intended for minors and the requirement that advertisements be directed to those over 21 years of age, among other requirements.
The containment measures propagated by the media, for these reasons, are ineffective. The preservation of the integrity of people and sports, as initially stated, must focus on another direction. It must be centered on:
(i) regulation,
(ii) monitoring and combat, and
(iii) awareness.
We already have the regulations. We have Laws 13.756/18 and 14.790/23, in addition to more than a dozen ordinances issued by the Ministry of Finance on the subject by July 2024, which should start to produce concrete effects as of January 2025.
The regulations, by the way, are adequate, balanced and should remedy the externalities caused by the activity, providing security for bettors, clear guidelines for operators and revenue for the Brazilian government, in addition to generating thousands of direct and indirect jobs.
The resources that will enter the public coffers will be used to finance equipment and assist in the qualification of people to monitor bets. It is worth remembering that, by express legal determination, these resources will also be used to mitigate the impact of the activity in the fields of health, public safety and sports, in addition to being allocated to public awareness campaigns.
Therefore, it is clear that, contrary to what has been reported in part of the mainstream media, we are not in a lawless land. Many of the arguments are unfounded. The problems highlighted have already been addressed.
It is true that the regulations were slow to be enacted, which encouraged disorderly market growth. But the guidelines were created, and the organizations and management structures were established by the State. Now we only have to wait a few months, until January 2025, for this new reality to come into effect.
Rafael Marchetti Marcondes
Professor of Sports, Entertainment and Tax Law. PhD and Master's degree in Tax Law from PUC/SP. MBA in sports management from ISDE in Barcelona/ES. MBA in sports betting management from Ohio University/USA. Chief Legal Officer at Rei do Pitaco. President of the Brazilian Fantasy Sports Association (ABFS). Legal Director of the Brazilian Institute for Responsible Gaming (IBJR). Director of Government Relations at the Brazilian Association for the Defense of Sports Integrity (Abradie).
