How Can Brazil Enforce Its New Online Betting Law?

Event banner for SBC Summit Rio 2024
(Image Credit: SBC Americas)

Brazil, a nation of 217 million people, just passed an online iGaming and sports betting law that increases online betting’s worldwide footprint. But does the country have the tools to ensure that online gambling complies with the new law? And are potential Brazilian betting operators ready to comply?

Key Provisions of Law 14,790

Law 14,790/2023, signed by Brazilian President Luiz Inácio Lula da Silva on 30 December 2023, regulates both online iGaming and online sports betting. The law brings order to an unregulated industry while raising revenue for the government.

The key provisions of Law 14,790 include the following:

  • Regulation of online fixed-odds betting. The law regulates both “real sports-themed events” and “virtual online gaming events.”
  • Government authorization of betting entities. Only operators established in Brazil can offer online fixed-odds betting, and operators must pay a fee of up to R$ 30 million (thirty million Brazilian reais, or approximately US$ 6 million).
  • Mandate to prevent gambling harms. Operators must implement responsible gambling measures to minimize gambling disorders.
  • Keep gambling honest. Operators must prevent result manipulation.
  • Taxation. Both operators and bettors must comply with appropriate tax regulations.
  • Enforce regulations on bettors. Operators must also ensure that bettors are allowed to participate. To that end, operators must implement Know Your Customer (KYC), Anti-Money Laundering (AML), and anti-terrorist checks on bettors. Operators must identify individuals using a method such as facial recognition. Finally, operators must implement age verification to ensure that minors under the age of 18 are not engaging in online betting.

Lessons Learned from the SBC Summit Rio

The recent passage of Law 14,790 made this year’s SBC Summit Rio even more critical. As potential operators prepare to register with the authorities under the new law, they need to ensure that they can meet all the law’s provisions, including its strict identity verification provisions.

At the SBC Summit Rio, we learned the following:

  • Three of the ten gambling regulations have already been issued, but there are not yet any final regulations for identity verification and Know Your Customer (KYC).
  • The expected identity verification regulations will combine ID data verification from the registry of individuals (Cadastro de Pessoas Físicas, or CPF), electronic document verification, and facial recognition.
  • Despite recent changes in Brazil’s regulatory leadership, iGaming regulation is still targeted for September, or possibly even August.

But what will happen when Brazil implements the finalized regulations?

  • Legal iGaming will be popular with bettors. The market is undeniably large, and the appetite for sports betting and online casino betting is even larger.
  • Legal iGaming will also be popular with operators from Brazil and the rest of Latin America, Europe, and the United States. Some operators already have sizable market penetration, and some enjoy links with the national soccer league (Campeonato Brasileiro Série A).

Despite popularity with bettors and operators, legalized iGaming will fail unless

  • Regulators and operators implement a well-defined workflow for identity verification.
  • Bettors and operators enjoy an identity verification workflow that minimizes friction and is economical.

What are the Keys to Brazilian iGaming Success?

The provisions of Law 14,790 must ensure proper vetting.

  • Identity verification must prevent terrorists and fraudsters from illegally laundering money.
  • It must also prevent minors from suffering the harmful effects of underage gambling.
  • Finally, government tax agencies must obtain the revenue necessary to balance Brazil’s budget.

Brazilian betting operators can only satisfy the intent of Law 14,790 by implementing an identity and age verification solution that uses multi-mode verification. The Aristotle Integrity Suite from Integrity, a Division of Aristotle provides the required robust identity and age verification solution for online and in-person gambling operators in Brazil and throughout the world.

Learn how the Aristotle Integrity Suite can protect your gambling operation from terrorists, fraudsters, and others. Click the “FREE DEMO” button in the upper right corner.


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