Brazil’s long, circuitous journey took another step forward this week as the ministry of finance published an ordinance outlining how the regulations will be implemented. The regulation will be rolled out in four stages, culminating in June of this year. The first stage will see the publication of security guidelines that betting operators must adhere to, the second stage will pertain to anti-money laundering and terrorist financing concerns, the third stage relates to the technical requirements for online betting platforms and the final stage deals with how the new gambling industry will contribute to socially responsible causes, such as promoting responsible gaming.
This is certainly an exciting step as regulated gambling in Brazil comes one step closer to reality. This presents a massive opportunity for gambling operators – Brazil is the sixth most populous country in the world and has a sports-mad population.
But before gambling firms set up shop in Brazil, they’ll need to have a firm grasp of the regulations as well the proper technology and processes in place for accurate identity authentication to enable a seamless customer experience while stopping fraud. To do this, sports betting operators will need robust Know Your Customer (KYC) protocols in place. Here are some steps businesses can take when it comes to creating an optimal KYC experience.
Onboarding Journeys
Sportsbooks will need to deliver the seamless onboarding/registration process that online bettors have come to expect. They should have the ability to create custom workflows that can deliver personalized user experiences. For speedy user onboarding, businesses need technology that can compare customer information against identity documents or relevant databases in real time in order to simplify and streamline the KYC process.
Document Verification
Gambling operators should have the right technology in place to make the document verification process easier and more efficient by extracting all relevant data for analysis. AI can be used to automatically verify the accuracy of most documents, and unusual or difficult cases can be shifted to human experts for further review.
Detecting and Stopping Fraud
Once any new industry arrives in a market, there will always be criminal elements not far behind. Once a wave of new, regulated sports betting entities go live, there will come with it a massive rise of fraudsters committing bonus abuse, targeting good users with account takeover attacks, laundering money and much more. International operators coming to Brazil must ensure they can protect their platforms from this fraud and ensure that they are keeping customer data safe and complying with all local consumer data privacy laws.
Right to Bet and Restricted Lists
All potential new users must be checked as it pertains to different compliance regulations – such as if they are on PEP (politically exposed persons) list, or the Brazilian government’s restricted from betting list. Then such people can be rejected or blocked from onboarding as required by law. Conversely, sportsbooks must have systems in place that guarantee secure access for verified users, safeguarding their right to bet.
Caf: Your Partner in Brazil
As a Brazil-born and headquartered company, we know the ins and outs of local laws and regulations in the country. We offer a range of features that make for an ideal solution for sports betting operators looking to comply with the new regulations in Brazil. These include:
- Real-time verification: Caf can help your company to verify the identity of customers in real-time, allowing sports betting operators to quickly and securely onboard new customers and reduce fraud e.g. bonus abuse
- Robust security: We implement advanced security measures to ensure that customer data is kept safe and secure.
- Scalability: The Caf platform is able to scale to meet the needs of sports betting operators of all sizes, from small startups to large multinational corporations.
- Compliance: Our solution is designed to comply with the latest regulatory requirements, including the new regulations around sports gambling introduced in Brazil.
- Brazil-Native: Our company was started in Brazil and remains headquartered here, with offices in Sao Paolo, Rio De Janeiro, Venancio Aires and elsewhere in the country.
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