It is no surprise that anti-money laundering prevention is one of the main topics inherent to the regulation and proper functioning of the betting market in Brazil. Currently, the net continues to tighten against bad practices within the industry, which is now moving toward much more serious discussions and even more forceful solutions to ensure greater efficiency and regulatory compliance.
From the introduction of new guidelines for the sector to the deepening of debates and the implementation of new technologies, measures to combat money laundering in betting are becoming increasingly tangible.
The matter, of course, could not be addressed otherwise, since it is natural that within a regulated industry there should be a constant concern with maintaining clear policies against money laundering and terrorist financing—especially considering the high volume of financial transactions within the betting sector.
The issue has been present since Law 14.790/23, which regulated sports betting, and took on new developments with Normative Ordinance No. 1,143, published by the Secretariat of Prizes and Betting of the Ministry of Finance in 2024, introducing new guidelines. The regulation may be new, but its main points are based on pre-existing laws, such as Central Bank Circular No. 3,978, which establishes similar directives for the financial market.
Among the main provisions currently in force, in addition to a series of required internal processes, certain topics stand out, such as customer identification and verification systems (KYC), as well as the qualification and risk classification of platform bettors, based on information collected about each user’s profile.
There is also the obligation to report suspicious transactions to the Council for Financial Activities Control (Coaf), a federal government body that combats money laundering.
With the tightening of oversight around these measures, the government itself has required betting operators to present effective policies for the prevention of money laundering and terrorist financing. This has moved initiatives from theory into practice, since there is no longer any room for non-compliance.
The market has been adapting to all these new requirements, relying on years of expertise and the development of new technologies to ensure efficient monitoring of bettor profiles, in order to identify suspicious activity and report it to the relevant authorities when necessary. In addition, continuous monitoring and transaction analysis helps prevent illicit activities and detect unusual patterns.
In this context, verifying the identity of bettors is also essential to ensure that the user entering the platform is who they claim to be. This is critical to prevent funds from being transferred to third parties within the betting site, which would otherwise enable clear money laundering practices, such as deposits being made under one tax ID (CPF) but withdrawn directly into an account linked to another CPF.
At Paag, we have been working on all these issues, developing tailored tools that make it possible to thoroughly understand each bettor’s profile and behavior on betting platforms, including real-time monitoring and behavioral analysis. This information, always handled securely and in compliance with regulations, is shared with betting operators so they can make the best possible decisions at the earliest sign of risk.
There is no doubt, therefore, that the path to combating money laundering and terrorist financing in betting houses lies in maintaining active efforts to truly know your player, as well as constant communication with platforms and authorities. Only then is it possible to remain vigilant and cut off any sign of irregularity at its root within betting, which should always serve the purpose of entertainment for players—responsibly and in accordance with the law.
João Fraga
CEO of Paag
