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Brazil is a highly lucrative market for international sports betting companies due to its vast size combined with enormous, untapped potential. With a population of over 200 million people and a tremendous love and enthusiasm for sports among its populace, Brazil represents a great opportunity for bookmakers. However, sports betting operators that want to do business in Brazil will have to know the ins and outs of the country’s new regulations related to gambling.
Any company that wants to succeed in the Brazilian market needs to have a safe and secure platform while adhering to all pertinent regulations. To comply with Brazilian rules and defend their platforms from fraudulent activity, sportsbooks must ensure they have the proper tools and protocols in place.
Identity Verification
In order to succeed and thrive in the Brazilian market, bookmakers need innovative identity verification solutions and expertise in the intricacies of identity validation in Brazil.
Robust identity verification enables organizations to increase user acceptance while reducing fraud and operational costs by implementing tools such as face match, facial biometrics, and documentoscopy, in order to accurately confirm user identities to establish that the users are really who they claim to be.
Specifically speaking to the Brazilian market, bookmakers will need to conduct a CPF inquiry for every new user that is onboarded. A CPF (“Cadastro de Pessoas Físicas”) is the Tax ID number given to all Brazilian citizens and foreign aliens who pay taxes.
Businesses can greatly benefit by automating CPF inquiries to determine whether the CPF used in new account registrations is regular or irregular, belongs to someone who has died, and other relevant information from the Federal Revenue.
Sportsbook operators will also have to check every user against a government restricted list for those prohibited from engaging in sports betting. This is a wide ranging list and includes government workers involved with gambling regulation policy, those involved in professional sports, legal entities and many more.
Bookmakers entering the Brazil market must ensure they are not onboarding as customers any persons on these restricted lists, lest they face fines or even losing their license to operate in the country.
Fraud Detection
Identifying and stopping fraudulent activity is another major concern for operators entering the Brazilian sports betting market. Unfortunately, a wave of new licensed sportsbooks entering the country will also attract a wave of fraudsters trying to take advantage of this new paradigm.
That means there will be a number of people creating fake new accounts for the purpose of bonus abuse, committing account takeover attacks against existing users, using gaming accounts for the purpose of laundering money, and other illegal activities.
That is why bookmakers must ensure they can safeguard their platforms from all types of fraud that target the sports gambling space. By combining the right tools and processes, along with continuously enhanced AI algorithms and ML models, sportsbooks can accurately validate identities, manage new and old users, improve risk decisions, and ultimately detect and stop fraud attacks early on before they can harm the business or customers . By implementing the proper tools and tactics, you bookmakers protect platforms from fraudulent activity and uphold the quality of the user experience.
In-depth local knowledge
Brazil is requiring any regulated bookmaker doing business in the country to be headquartered in Brazil. A big reason for this is to increase tax revenue; Brazil’s finance minister, Fernando Haddad, said legalizing sports betting is a way to boost fiscal revenue to offset increased social services spending.
This means sports betting companies that want to set up shop in Brazil must have an intimate knowledge of all the country’s regulations and rules around managing identity and consumer data. To do this effectively, you need a local partner that already has a proven track record of working with companies in Brazil.
How Caf can help you navigate the Brazilian betting landscape
That is why Caf is here to help assist your firm in managing the complexities of Brazilian sports betting laws. We are a Brazilian-born startup, with the experience and knowledge to help organizations rapidly and reliably verify client identities, manage new and old users, improve risk decision-making, and assure compliance with changing legislation at a lower cost.
We help digital businesses optimize the user onboarding experience for higher customer satisfaction and increased conversions by using customized rules for risk assessment and creating user-friendly workflows. Caf offers access to various risk assessment tools, robust fraud detection technologies, and regulatory compliance knowledge allowing non-native companies to win in the competitive Brazilian sports betting market. Click here to talk to an expert today about how Caf can help with all your identity verification needs.
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