Sports betting was legalized in 2018 and regulated in July 2023.

Amidst this scenario, a recent event further heated up discussions on the topic: the scandal involving match-fixing and bribery of players in the Brazilian Championship Series B.

Summary: Betting and match-fixing

The case of match-fixing in Série B is under investigation by the Public Prosecutor’s Office of Goiás. But in addition to this episode, there are also suspicions of cases that occurred in the Minas Gerais and Rio Grande do Sul championships.

The rise in cases of match-fixing makes regulating sports betting in Brazil even more important.

But this is not a new discussion! Since 2018, the International Betting Integrity Association (IBIA) has been criticizing some aspects of the Betting Law projects.

For the entity, the text released in 2018 by the Ministry of Economy lacked a reference to a regulatory structure for sports betting .

The first draft of the Decree refers to cooperation with international bodies to prevent corruption. But nothing more than that.

IBIA was then concerned about the lack of specific integrity measures. It also demands that Brazil reformulate the text in this regard.

Regulatory news

The MP that regulates sports betting was published with specific points aimed at combating the manipulation of results.

After a few months of discussion, it was transformed into a Bill (PL) that maintains the security guidelines for bettors and combats illegal activities.

It was established that people who can influence the outcome of sports matches, such as coaches, athletes and referees, will not be able to place sports bets .

Spouses, partners and relatives up to the second degree are also prohibited.

Furthermore, companies involved in betting activities are prohibited from acquiring, licensing or financing the obtaining of rights to sporting events held in Brazil, for the purpose of broadcasting, distributing or displaying them in any way, through any means of communication.

Finally, it is expected that there will be stricter monitoring of possible cases of fraud.

Is match fixing a crime?

Yes, match fixing is a crime in Brazil!

See articles 41-C to E of the Fan Statute (Law 10.671/03):

Art. 41-D. Giving or promising a financial or non-financial advantage with the purpose of altering or falsifying the result of a sports competition or event associated with it: Penalty – imprisonment of 2 (two) to 6 (six) years and a fine.

Art. 41-D . Giving or promising a financial or non-financial advantage with the purpose of altering or falsifying the result of a sports competition or event associated with it: Penalty – imprisonment of 2 (two) to 6 (six) years and a fine.

Art. 41-E . Defrauding, by any means, or contributing to defrauding, in any way, the result of a sports competition or event associated with it: Penalty – imprisonment of 2 (two) to 6 (six) years and a fine.

It is also worth noting that bookmakers are not to blame for cases of match-fixing.

These actions are usually orchestrated by criminal bettors in partnership with athletes and/or other members involved in organizing matches and tournaments.

And in addition to the legislation already in force, it is important that the new regulations for sports betting bring more integrity and transparency in the fight against corruption, as suggested by IBIA.

Creating an integrity committee is the first step

The creation of a sports betting integrity committee is the basis for preventive actions to protect companies, bettors and sports.

The idea is taking shape behind the scenes in the Government. What is being discussed today is who will lead the committee and how the work will be carried out.

For now, the intention is to create a group involving several parties. In this way, it is believed that all interested parties will be heard.

Athletes, club directors, Ministries of Finance, Justice and Sports, betting houses and bettors must be represented.

The integrity committee will have the mission of preventing and curbing cases of match-fixing and other forms of corruption.

Another possible function of this group will be to ensure transparency and honesty in sports.

Cases such as the Whistle Mafia (2005) , Operation Game Over (2016) and the recent Maximum Penalty (2022) are being remembered to prevent betting from negatively interfering in Brazilian sport.

Measures to prevent corruption in betting

Understanding how the match-fixing mechanism works is essential to curbing this type of behavior. The focus, therefore, must be on getting to the sources of the manipulation: the agents involved in the sport and corrupt bettors.

Referees, athletes and club and Confederation directors will be the main targets of the Integrity Committee that should be created by the Federal Government.

On the other hand, it is essential that attention is also paid to bettors. Corruption often begins with those who place bets.

Organized groups of corrupt bettors offer money to clubs and others involved in matches to manipulate the results.

With this in mind, the Federal Government’s oversight of the new Betting Law needs to be constant.

Ideally, it can focus on 3 pillars to be successful:

1. Dialogue between athletes, clubs and federations

Match-fixing is more common in football. We will use the Brazilian Football Confederation as an example.

The CBF should be the first to demand commitment from its affiliates in order to combat the illegal betting market. And this can happen in many ways, such as:

• Creation of an internal reporting channel
• Cooperation with the Public Prosecutor’s Office, Federal Police and other Government agencies
• Investment in internal audit systems for clubs and athletes

It is the role of the highest authority in Brazilian football to demand that clubs and federations play an active role in the internal supervision of teams.

Many athletes from smaller clubs, as already mentioned, are vulnerable targets for manipulation attempts.

Therefore, in 2018, the CBF created the General Competition Regulations , which define the following terms:

Art. 55. In order to prevent or hinder the manipulation of match results, the following behaviors will be considered illegal behavior by athletes, coaches, members of the technical committee, managers and members of the refereeing team and all those who directly or indirectly may exert influence on the result of matches:

I – betting on yourself, or allowing someone close to you to do so, on your opponent or in a football match;

II – instruct, encourage or facilitate any other person to bet on a football match in which they are participating or may exert influence;

III – ensure the occurrence of a particular event during a football match in which he is participating or can exert influence, and which may be the subject of a bet or for which he has received or will receive any reward;

IV – give or receive any gift, payment or other benefit in circumstances that could reasonably be expected to bring discredit upon oneself or football;

V – sharing sensitive, privileged or internal information that may ensure an unfair advantage and result in obtaining some financial gain or its use for betting purposes;

VI – fail to immediately inform their practice entity, administration entity or the competent sports, police or judicial authority of any threat or suspicion of corrupt behavior, such as in the case of someone approaching to ask about manipulation of any aspect of a match or through the promise of financial reward or favors in exchange for sensitive information.

This type of attitude can and should be replicated in other sports.

As an example, the National Basketball League has partnered with Genius Sports .

The British company will create a system to preserve the integrity of bets on Novo Basquete Brasil .

2. Creation of a code of ethics and conduct

In 2019, the NFL banned all employees and athletes connected to the competition from directly or indirectly engaging in sports betting.

A set of rules, including penalties, were established to ensure that American Football maintained its full integrity.

The same system can be developed in Brazil, in all sports. A strict system of conduct and ethics can prevent manipulation.

As we have seen, the CBF already has something similar. The General Competition Regulations cover the procedures for sports betting.

Article 55 stands out , which prohibits all those involved in football matches from behaving in a way that aims to favour a particular result .

These behaviors can range from betting on your own club to failing to notify authorities about perceived suspicious behavior.

3. Educate bettors about integrity

The last pillar is perhaps the most important. There is no point in dialogue and monitoring without education.

Educating those involved in sports, especially gamblers, has emerged as one of the Federal Government’s most urgent measures.

This can be done in a number of ways. Lectures, workshops and free courses on ethics, morals and integrity are some possibilities.

This would be a good opportunity to discuss the topic of sports betting addiction .

Lectures on the psychological and financial health of bettors can prevent harmful behaviors that may result in match-fixing.

To finish

Brazil is on its way to becoming one of the biggest betting markets in the world.

But this will only be possible if there is transparency and dialogue between sports betting and the sports to which it relates.

One of the Federal Government’s greatest concerns is that the integrity of some sports will be lost. This breach could lead to cases of corruption in sports, as has already been seen not only in Brazil, but also in countries such as Italy and Portugal.

In order to avoid this “break”, the new Betting Law will need to present regulatory and inspection solutions .

Some possible measures the Government may take from now on should involve the creation of an integrity committee . Once the committee is established and its activities defined, it will be easier to prevent match-fixing.