New Sports Betting Regulations For Brazil

The Brazil Ministry of Finance has published an ordinance on the implementation of new regulations for sports betting. The country is poised to establish a regulated gambling market, opening up significant opportunities for biometrics and digital identity providers. With the potential for a massive rise in fraudsters and the need for seamless onboarding and registration processes, the industry is turning to facial recognition and identity verification technologies to ensure compliance and protect customers.

Under the new bill, the Ministry of Finance will authorize providers in the sports betting sector. To oversee the industry, a new National Gaming and Betting Secretariat will be established. This move paves the way for both national and international companies to enter the regulated gambling market in Brazil. Local firms like CAF and Legitimuz, as well as international providers like IDVerse and Sumsub, are already considering the opportunities presented by this new legislation.

As Brazil moves towards enacting Law 14,790, CAF, a Brazilian facial recognition and identity verification firm, has introduced a packaged solution called Bet ID. This comprehensive solution combines biometric facial authentication, ID document analysis, and database checks to facilitate user onboarding and secure transactions. According to Cadu Merlin, CAF’s VP of sales for Latin America, gambling firms looking to establish a presence in Brazil must prioritize compliance and robust know your customer (KYC) protocols. Bet ID streamlines these processes, ensuring accurate identity authentication while offering a seamless customer experience and protecting against fraud.

Merlin outlines a four-stage plan for the regulatory rollout, beginning with the publication of security guidelines. The subsequent stages will address anti-money laundering (AML) processes, technical requirements for betting operators, and ethics, including social responsibility and responsible gaming practices. To expedite the onboarding process, businesses will need reliable technology capable of real-time face biometric matching against identity documents or relevant databases. AI-powered document verification can enhance efficiency and minimize friction for customers. It is crucial for international companies to navigate local consumer data privacy laws, as well as restrictions related to politically exposed persons (PEP) and restricted betting lists.