The most significant aspect of the Instituto Brasileiro de Jogo Responsável (IBJR) is that a responsible gaming association has been established in the period preceding modern betting regulations for the country.  This is a unique situation in my experience, and places Brazil at the forefront of such a sensitive social requisite on a global basis. However, it is seldom recognised that responsible gaming has its roots in the business concept – Responsible Credit – coined back in 1987 in South Africa by James Fonseca, an Anglo-Brazilian casino executive.

What is important about IBJR is the almost scientific approach to responsible gaming. During SBC Summit Rio 2024, in March, I had the opportunity to meet IBJR’s founder, director, president and Managing Partner Brazil Betsson Group, Andre Gelfi, to find out first-hand the important work that the Institute is doing ahead of the onslaught of full sports betting and online casino operations in Brazil.

RCM: At first sight, it seems surprising to see a body like IBJR already in place in a country with much unregulated betting and gambling. However, some of the biggest names in the betting and gaming global industry, Betsson, Entain, Flutter, Bet365, are prime supporters of the Institute. Was IBJR an industry initiative?

Andre Gelfi: “Yes, I can say that IBJR was an initiative of major players in the global betting industry who joined forces, resources, and a wealth of experience in regulated markets to seek the best conditions for companies to establish themselves in Brazil with legal certainty, a sustainable and safe business environment, both for companies and society. Data from a recent survey we conducted with the International Betting Integrity Association (IBIA) already show that Brazil is the fourth largest market in the world, and we are working to ensure that it is established in the best possible way.”

RCM: Of course, when I make a reference to the origins of responsible gaming, on the sensitive issue of responsible credit, which came about as a business oriented practice that looked towards protecting players from overstretching on their financial commitments to the casino, the issue was one of looking after the economy of the business owing to previously out of control bad debt from players that was hurting cash flow as was practically impossible to pay back. This is not an issue with online betting and gambling, so what was the motivation for the creation of IBJR?

Andre Gelfi: “The cornerstone of IBJR’s work is the advocacy for responsible gaming and the dissemination of best practices both for players and betting companies. It’s one of the main reasons for the Institute’s creation, alongside the aim to discuss and facilitate access to information about the sports betting sector, especially in a country that hadn’t previously regarded this industry as a market with significant financial potential. In this regard, we aim to collaborate with the Ministry of Finance on issues such as allowing various betting markets (such as yellow cards and corners), responsible advertising, sports integrity, and tax issues affecting players and companies.”

RCM: It is important to note that on the matter of Education & Information, IBJR considers that, “One of the biggest duties of sports betting and gambling companies is to promote more accessible and dignified education about betting odds, risks, and strategies”. This is fine in theory, but how does, say Betsson, put this into practice?

Andre Gelfi: “Betsson works to ensure a fun, but above all, safe experience for its customers. Aligned with ESG principles, the organization adopts rigorous standards of corporate governance, with responsible gaming being the cornerstone of its business. Enhancing products and creating new initiatives, training, and policies that promote fair play are priorities. The global Responsible Gaming team systematically trains employees worldwide and has its work and processes audited annually. The company does not waive its responsibility to educate its customers about the dynamics of betting, as well as to identify all consumers at risk of developing problems with the activity. Therefore, they offer a combination of tools enhanced by rigorous processes and the use of artificial intelligence to minimize the risks of gambling. The main ones include self-exclusion and self-assessment, time notifications, deposit limits, and prevention of atypical behaviours through data analysis.”

RCM: Getting back to the responsible credit episode in South Africa, because at the time, as part of the team that went to restructure Sun International casino operations in 1987, we did encounter some resistance to restricting credit facilities to players, on the basis of their ability to gamble within their means. One of the points I tried to make at the time was that irresponsible credit for casino gambling was the biggest risk to both company and players. Since then, betting odds and risk has been the cornerstone of my own programmes in casino operations, but I’m afraid to say that society as a whole undervalues the risk situation in life, never mind gambling. Does IBJR have a programme dealing with risk on the basis of chance related to odds and probabilities? 

Andre Gelfi: “The IBJR, as an entity, does not have specific programs to deal with player credit. We understand that this is a very important issue in responsible gaming, as behaviours associated with unlimited credit can lead to significant financial and health problems. However, we support the development of responsible gaming strategies among our members and also in collaboration with the Ministry of Finance, following regulations.”

RCM: It’s about a year now since IBJR launched the Brazilian Code of Advertising Self-Regulation for the sports betting sector, and appropriately, how have the approved sports betting Brazilian law and regulations responded to that?

Andre Gelfi: “At the time, we created our Brazilian Code of Advertising Self-Regulation as a response to the significant uncertainties surrounding the aggressive marketing practices of betting houses, often exposing young people to communications about gambling, promoting the idea of easy gains, a source of income, and unrestricted or irresponsible gaming. Our code, based on the best practices used abroad, aimed to establish the initial guidelines for the matter. In partnership with Conar, we collaborated on the creation of the entity’s Annex X, published earlier this year. As IBJR, we consider Annex X an essential tool for regulating digital communications, advertising, and influencer activities for betting companies in Brazil, as is done abroad.”

RCM: All in all, Brazil is set to become one of the largest betting and gambling economies in the world, and yet there is a large political sector in the country firmly opposed to what has become a global mainstream industry. However, in Brazil, gambling opponents have not moved a finger against Jogo do bicho, illegal nowadays, which has survived and prospered uninterrupted for more than 130 years. Has IBJR any plans to address what seems to be a harmless popular pastime, but that moves millions unchecked?

Andre Gelfi: “As previously said, IBJR focuses on raising society awareness towards a healthy and sustainable regulated gaming industry. In other words, a fair and broad regulation seems to be a cornerstone to enable such conditions. If there is a market, we believe it should be discussed, understood and regulated.”

RCM: Organizations like IBJR are essential to society, and it is surprising to see that there are countries lagging on such essential programmes addressing risk and responsibility in betting and gambling. Are the companies supporting IBJR prepared to do the same in other Latin American countries?  

Andre Gelfi: “IBJR engages in dialogue with other entities and positions itself as a reference for the creation of new organizations. Our proposal is to broaden the scope of discussions regarding the regulation of virtual and sports betting and to become a focal point on the subject. Companies associated with IBJR are present in Brazil, but they are mostly global, have branches throughout Latin America, North America, and Europe, which facilitates contact with other organizations and understanding what is being discussed in other countries.”

RCM: Thank you for your valuable comments, Andre, and my final question must be on IBJR’s position on legislation projects on casino resorts in Brazil. Does your Institution support land-based casinos?

Andre Gelfi: “At IBJR, we prioritize responsible gaming practices and advocate for regulation that ensures the safety and well-being of players. We believe that any legislation related to the establishment of casino resorts should include robust measures for responsible gaming, strict regulations, and thorough considerations for social impacts.”

The most significant aspect of the Instituto Brasileiro de Jogo Responsável (IBJR) is that a responsible gaming association has been established in the period preceding modern betting regulations for the country.  This is a unique situation in my experience, and places Brazil at the forefront of such a sensitive social requisite on a global basis. However, it is seldom recognised that responsible gaming has its roots in the business concept – Responsible Credit – coined back in 1987 in South Africa by James Fonseca, an Anglo-Brazilian casino executive.

What is important about IBJR is the almost scientific approach to responsible gaming. During SBC Summit Rio 2024, in March, I had the opportunity to meet IBJR’s founder, director, president and Managing Partner Brazil Betsson Group, Andre Gelfi, to find out first-hand the important work that the Institute is doing ahead of the onslaught of full sports betting and online casino operations in Brazil.

RCM: At first sight, it seems surprising to see a body like IBJR already in place in a country with much unregulated betting and gambling. However, some of the biggest names in the betting and gaming global industry, Betsson, Entain, Flutter, Bet365, are prime supporters of the Institute. Was IBJR an industry initiative?

Andre Gelfi: “Yes, I can say that IBJR was an initiative of major players in the global betting industry who joined forces, resources, and a wealth of experience in regulated markets to seek the best conditions for companies to establish themselves in Brazil with legal certainty, a sustainable and safe business environment, both for companies and society. Data from a recent survey we conducted with the International Betting Integrity Association (IBIA) already show that Brazil is the fourth largest market in the world, and we are working to ensure that it is established in the best possible way.”

RCM: Of course, when I make a reference to the origins of responsible gaming, on the sensitive issue of responsible credit, which came about as a business oriented practice that looked towards protecting players from overstretching on their financial commitments to the casino, the issue was one of looking after the economy of the business owing to previously out of control bad debt from players that was hurting cash flow as was practically impossible to pay back. This is not an issue with online betting and gambling, so what was the motivation for the creation of IBJR?

Andre Gelfi: “The cornerstone of IBJR’s work is the advocacy for responsible gaming and the dissemination of best practices both for players and betting companies. It’s one of the main reasons for the Institute’s creation, alongside the aim to discuss and facilitate access to information about the sports betting sector, especially in a country that hadn’t previously regarded this industry as a market with significant financial potential. In this regard, we aim to collaborate with the Ministry of Finance on issues such as allowing various betting markets (such as yellow cards and corners), responsible advertising, sports integrity, and tax issues affecting players and companies.”

RCM: It is important to note that on the matter of Education & Information, IBJR considers that, “One of the biggest duties of sports betting and gambling companies is to promote more accessible and dignified education about betting odds, risks, and strategies”. This is fine in theory, but how does, say Betsson, put this into practice?

Andre Gelfi: “Betsson works to ensure a fun, but above all, safe experience for its customers. Aligned with ESG principles, the organization adopts rigorous standards of corporate governance, with responsible gaming being the cornerstone of its business. Enhancing products and creating new initiatives, training, and policies that promote fair play are priorities. The global Responsible Gaming team systematically trains employees worldwide and has its work and processes audited annually. The company does not waive its responsibility to educate its customers about the dynamics of betting, as well as to identify all consumers at risk of developing problems with the activity. Therefore, they offer a combination of tools enhanced by rigorous processes and the use of artificial intelligence to minimize the risks of gambling. The main ones include self-exclusion and self-assessment, time notifications, deposit limits, and prevention of atypical behaviours through data analysis.”

RCM: Getting back to the responsible credit episode in South Africa, because at the time, as part of the team that went to restructure Sun International casino operations in 1987, we did encounter some resistance to restricting credit facilities to players, on the basis of their ability to gamble within their means. One of the points I tried to make at the time was that irresponsible credit for casino gambling was the biggest risk to both company and players. Since then, betting odds and risk has been the cornerstone of my own programmes in casino operations, but I’m afraid to say that society as a whole undervalues the risk situation in life, never mind gambling. Does IBJR have a programme dealing with risk on the basis of chance related to odds and probabilities? 

Andre Gelfi: “The IBJR, as an entity, does not have specific programs to deal with player credit. We understand that this is a very important issue in responsible gaming, as behaviours associated with unlimited credit can lead to significant financial and health problems. However, we support the development of responsible gaming strategies among our members and also in collaboration with the Ministry of Finance, following regulations.”

RCM: It’s about a year now since IBJR launched the Brazilian Code of Advertising Self-Regulation for the sports betting sector, and appropriately, how have the approved sports betting Brazilian law and regulations responded to that?

Andre Gelfi: “At the time, we created our Brazilian Code of Advertising Self-Regulation as a response to the significant uncertainties surrounding the aggressive marketing practices of betting houses, often exposing young people to communications about gambling, promoting the idea of easy gains, a source of income, and unrestricted or irresponsible gaming. Our code, based on the best practices used abroad, aimed to establish the initial guidelines for the matter. In partnership with Conar, we collaborated on the creation of the entity’s Annex X, published earlier this year. As IBJR, we consider Annex X an essential tool for regulating digital communications, advertising, and influencer activities for betting companies in Brazil, as is done abroad.”

RCM: All in all, Brazil is set to become one of the largest betting and gambling economies in the world, and yet there is a large political sector in the country firmly opposed to what has become a global mainstream industry. However, in Brazil, gambling opponents have not moved a finger against Jogo do bicho, illegal nowadays, which has survived and prospered uninterrupted for more than 130 years. Has IBJR any plans to address what seems to be a harmless popular pastime, but that moves millions unchecked?

Andre Gelfi: “As previously said, IBJR focuses on raising society awareness towards a healthy and sustainable regulated gaming industry. In other words, a fair and broad regulation seems to be a cornerstone to enable such conditions. If there is a market, we believe it should be discussed, understood and regulated.”

RCM: Organizations like IBJR are essential to society, and it is surprising to see that there are countries lagging on such essential programmes addressing risk and responsibility in betting and gambling. Are the companies supporting IBJR prepared to do the same in other Latin American countries?  

Andre Gelfi: “IBJR engages in dialogue with other entities and positions itself as a reference for the creation of new organizations. Our proposal is to broaden the scope of discussions regarding the regulation of virtual and sports betting and to become a focal point on the subject. Companies associated with IBJR are present in Brazil, but they are mostly global, have branches throughout Latin America, North America, and Europe, which facilitates contact with other organizations and understanding what is being discussed in other countries.”

RCM: Thank you for your valuable comments, Andre, and my final question must be on IBJR’s position on legislation projects on casino resorts in Brazil. Does your Institution support land-based casinos?

Andre Gelfi: “At IBJR, we prioritize responsible gaming practices and advocate for regulation that ensures the safety and well-being of players. We believe that any legislation related to the establishment of casino resorts should include robust measures for responsible gaming, strict regulations, and thorough considerations for social impacts.”