How Betting Regulation Can Prevent Match Fixing
After thorough investigations conducted by the Public Ministry of Goiás, the manipulation of sports match outcomes in order to favor betting results has resulted in the indictment of 14 individuals and the banning of three players by FIFA. This illicit activity has raised serious concerns within the sporting community, prompting swift action to preserve the integrity and fairness of the game. Such reprehensible actions not only harm the credibility of the sport but also undermine the trust placed in athletes and the organizations that govern them. The collaboration between law enforcement agencies and sporting authorities is vital in combating such fraudulent practices and ensuring that the true spirit of competition prevails, free from any form of manipulation or deception.
The Chamber of Deputies opened a Parliamentary Inquiry Commission (CPI) to investigate the frauds, which concluded last Tuesday (26) without voting on the final report. However, it led to the proposal of four legislative bills addressing the issue.
The subject is also addressed by PL 3.626/23, which deals with the regulation of sports betting.
The bill addresses match-fixing and other forms of fraud in a few sections, which mandate the implementation of a prevention policy and outline actions that the Ministry of Finance can take when suspicions of match interventions arise.
The bill, currently awaiting review in the Senate, lacks specific information regarding the implementation of penalties or the methods for fraud detection. It does not provide any explicit details on how sanctions will be imposed or how the monitoring of fraudulent activities will be carried out.
Possible Changes in the Senate
The existing text explains that, in the event of suspected result manipulation, the Ministry of Finance has the authority to provisionally determine:
- The immediate suspension of bets and the withholding of prize payments in relation to the suspicious event.
- The suspension or prohibition, of one or more betting operators, from placing bets on ongoing or specific events that occur during the suspicious competition, match, or contest, other than the specific prediction of the final outcome.
- Other restrictive measures aimed at preventing or mitigating the consequences of integrity-violating practices in sports.
It is conceivable that certain sections of the betting regulation text might undergo modifications in the Senate in order to render the legislation more precise in terms of combating fraud and money laundering. Potentially, amendments could be made to enhance the overall effectiveness of the law and address specific concerns related to preventing illegal activities. The aim would be to fortify the regulatory framework and ensure that the gambling industry operates with integrity and transparency, thereby safeguarding against potential risks and illicit practices. The Senate's deliberations could lead to a more tailored and comprehensive approach in tackling these challenges, while promoting fairness and upholding the highest standards of accountability.
Senator Eduardo Girão believes that the approved text in the Chamber is subpar and asserts his commitment to advocating for amendments during the passage of the bill through the Reviewing House.
The mentioned text fails to adequately address crucial matters, including the oversight and supervision of both white-collar crimes and manipulations in the outcomes of sports activities, particularly in the realm of football.
He emphasizes that he has already introduced seven bills in the Senate aiming to alleviate the "serious and adverse social impacts" of sports betting.
"They address the inhibition of advertising in mass media, restrictions on sponsorships in sports teams and arenas, allocation of larger funds towards policies for preventing ludopathy, the impossibility of offering both fixed-odds betting games and gambling games that are still prohibited in Canada, such as bingo and casinos," the citation states.
Malleability of the Law
According to Fabiano Jantalia, a specialist in gaming law and co-founder of Jantalia Advogados, the approved text by the Chamber has already reached an "excellent" point. In his view, the legislation has successfully achieved the desired outcome.
He explains that the more specific guidelines regarding fraud and money laundering are typically found in subordinate regulations rather than laws. It is common for these regulations to contain the finer points and intricacies of such offenses, going beyond what is explicitly stated in the legislation.
It is most appropriate to adopt the Canadian model of having rules through sublegal acts. Placing specifics in a bill is a mistake as it restricts flexibility and hampers the ability to update regulations on a daily basis regarding the matter.
The specialist believes that there is still a great deal of prejudice associated with the sports betting sector, which could result in an excessive caution when drafting the project. According to him, providing more detailed information would eliminate the flexibility of the law.
Next steps
Upon the passage of the legislation, the Ministry of Finance will proceed to draft regulatory measures to address the issue of fraud in sports betting. Fabiano Jantalia believes that it is crucial to integrate the best practices in money laundering prevention from other sectors, such as the banking industry.
"The ministry of finance is currently exploring the possibility of creating a real-time betting system, which would enable them to track issues related to money laundering and match manipulation," the source mentioned.
