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The growth of fraud in sports betting and the need for regulation in Brazil

Júlia Moura November 20, 2024
The growth of fraud in sports betting and the need for regulation in Brazil

Sports betting, a market rapidly expanding in Brazil, has raised government concerns due to increasing fraud and scams. Recently, the , through the National Secretariat for Sports Betting, reported a network of YouTube channels and digital accounts promoting bets with promises of easy profits but, in practice, defrauding consumers. According to the report, these sites collect deposits but fail to pay out promised prizes before disappearing, leaving bettors at a loss.

The impact of digital influencers 

According to the Ministry, at least 53 accounts and 25 channels were identified using digital influencers to lend legitimacy to fraudulent operations. These practices, which attract thousands of Brazilians, further highlight the urgent need for regulatory measures. As Minister André Fufuca stated, “our priority is to protect Brazilians and ensure the integrity of sports.” 

Secretary Giovanni Rocco also emphasized that these scams, often disguised as quick profit opportunities, constitute crimes against the public economy, causing financial harm to many families. 

Digital influencers directly affect how people consume information, products, and services. Their perceived authenticity and closeness create trust with their audience, encouraging followers to adopt ideas, buy products, or follow trends based on their recommendations. However, this trust can be misused when influencers promote questionable services or products, such as scams masked as lucrative opportunities, harming their followers.

Regulatory measures and expected benefits 

Regulation of the sports betting sector in Brazil was enacted by the federal government in 2024, introducing taxation and strict guidelines for companies. Betting operations are now taxed at 12% of revenue, with proceeds allocated to areas like sports, tourism, health, and education. Additionally, mechanisms were implemented to prevent fraud, match-fixing, and criminal activities such as money laundering. The creation of a Directorate of Sports Integrity and the National Secretariat for Sports Betting represents significant progress. 

Despite these advances, experts note that challenges remain. The use of international platforms and tools like VPNs can hinder the monitoring of unregulated sites. Complementary measures, such as awareness campaigns and partnerships with international organizations, are essential to curbing these practices. 

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