Preventing fraud and crime in the betting market: using data as an ally
Posted: Sun Dec 22, 2024 4:53 am
The digital betting market is one of the fastest growing in Brazil and worldwide. Advances in the distribution of sports content around the world, together with the population's growing access to the internet, mobile devices, and digital payment methods (such as credit cards and Pix) have created the perfect conditions for the explosion of online gambling. Global platforms have seen a large potential market in Brazil, which has been heavily approached, while local competitors have been emerging and growing rapidly.
Along with this explosive growth, the regulation and supervision of these companies has also been advancing. With the so-called “Sports Betting Law” of 2023 , Brazil has positioned itself as a leader in regulatory issues, creating a structure that imposes several requirements and duties for sports betting operators to operate in the market. But how can we advance in preventing fraud and crimes in the betting market ?
In this article, we will detail how data is used to fully automatically meet the regulatory requirements of this sector, allowing companies operating in it to continue growing and developing without increased costs or any impact on user experience.
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Overview of the betting market in Brazil
The betting market in Brazil, encompassing both sports betting and online casinos, is on a growth trajectory, with projections indicating that it will generate more than R$100 billion in revenue over the next three years .
In the wake of this growth, it is estimated that, from 2024 to 2026, online betting companies – popularly known as 'bets' – will generate approximately R$12 billion in taxes.
Currently, the online betting market is already australia business mailing list demonstrating its robustness, moving more than R$100 billion annually. According to recent data from betting aggregator BNL, this amount is expected to have reached between R$100 billion and R$120 billion in the last year, evidencing an upward trend.
The year 2023 was particularly notable, recording a total revenue of R$13 billion from betting in Brazil, an increase of 71% compared to 2020.
Brazil stands out in betting market data at a global level
Brazil's sports betting numbers stand out globally, with more than 3.19 billion hits, representing 22.78% of the world total. This number puts Brazil ahead of nations traditionally associated with the betting universe, such as the United Kingdom, which registered 1.61 billion hits, followed by Nigeria with 1.29 billion.
With the Brazilian betting market growing rapidly and generating billions in revenue, the main factor for success for companies in this sector is to have the correct regulatory compliance. Companies that do not comply with the legislation will be forced to cease their activities, and no matter how hot the market is, no business survives this. Below, we will detail how data can be used in the betting market not only to fully meet regulatory requirements, but also to prevent fraud and other types of crimes. Check it out!
Understand the relationship between data and the betting market
One of the main obligations established in the regulation of the betting market is the need to limit who can and cannot place bets, especially on sporting events. Likewise, there is an obligation for betting operators to identify and monitor their customers on a basis similar to that established for financial market agents. In both cases, public data and information can (and should) be used to verify individuals. See below how this works in practice:
Know-Your-Customer
Just like companies operating in the financial market, betting operators need to verify a series of important registration information about their customers, in a process known as “ know-your-client ” (or, more commonly, KYC). This includes identifying politically exposed persons, checking whether or not the individual is on sanctions and restriction lists, and several other relevant data to understand the customer’s risk level.
While most of this information is publicly available, using a quality database with fast response times, such as BigDataCorp's KYC query , is critical to ensuring that the customer experience is not impacted.
Identifying Unfair Gamblers
One of the main provisions within the regulation of the betting market is the need to identify and limit the actions of undue bettors. Betting companies are responsible for preventing anyone who could influence the outcome of an event from being able to bet on that event, as well as identifying other risky individuals.
Just like in the case of KYC, there is public data available that allows this type of verification to be carried out automatically and efficiently. However, existing databases are highly fragmented and unstructured, making it difficult to access and verify data. Fortunately, BigDataCorp has gathered all the data you need in a single query to identify unethical bettors quickly and cheaply.
Preventing fraud and crime in the betting market
One of the biggest financial risks associated with the betting market, whether online or offline, is the use of gambling as a mechanism for money laundering by criminals and wrongdoers. Regulation of this market places the duty of preventing fraud and crimes in the betting market as a responsibility of betting operators. Therefore, these companies need to identify high-risk customers at the time of registration and monitor the transactions being carried out by these customers, so that they can prove to the authorities that they are effectively fulfilling this duty.
In addition to the systemic risks exemplified in the previous topics, betting operators, like any company that deals with financial transactions in the digital environment, are subject to fraud. Accounts created with fraudulent credit cards, registrations made under other people's CPFs, and all sorts of fraud and scams will be increasingly applied in this market.
Fraud prevention is therefore essential. The sooner companies implement effective processes to block fraudsters, the sooner they will be sending the message to the market that they are not an easy target and that they truly care about the security of their systems and their users. BigId is a complete fraud prevention solution , with different protection mechanisms that can be adapted to the specific needs of each business, even in the betting market.
Learn more about how BigDataCorp can help your business
The betting market is a clear example of the power of data in the business world. However, this sector is not the only one to reap the strategic benefits provided by the intelligent use of information.
From innovative startups to global conglomerates, the ability to access and analyze reliable data has become a cornerstone of success across a range of industries. However, the real competitive advantage lies not only in having information, but in having verifiable and reliable data solutions at your disposal that can accurately guide strategic decisions.
In this context, BigDataCorp plays a fundamental role. Committed to democratizing access to data, our company stands out for capturing, structuring and distributing public information on an unprecedented scale.
With a rigorous process that ensures the origin of each piece of data, we guarantee compliance with the LGPD and other privacy legislation, thus offering a solid foundation for companies of all sizes and sectors to grow and innovate.
Along with this explosive growth, the regulation and supervision of these companies has also been advancing. With the so-called “Sports Betting Law” of 2023 , Brazil has positioned itself as a leader in regulatory issues, creating a structure that imposes several requirements and duties for sports betting operators to operate in the market. But how can we advance in preventing fraud and crimes in the betting market ?
In this article, we will detail how data is used to fully automatically meet the regulatory requirements of this sector, allowing companies operating in it to continue growing and developing without increased costs or any impact on user experience.
Follow!
Overview of the betting market in Brazil
The betting market in Brazil, encompassing both sports betting and online casinos, is on a growth trajectory, with projections indicating that it will generate more than R$100 billion in revenue over the next three years .
In the wake of this growth, it is estimated that, from 2024 to 2026, online betting companies – popularly known as 'bets' – will generate approximately R$12 billion in taxes.
Currently, the online betting market is already australia business mailing list demonstrating its robustness, moving more than R$100 billion annually. According to recent data from betting aggregator BNL, this amount is expected to have reached between R$100 billion and R$120 billion in the last year, evidencing an upward trend.
The year 2023 was particularly notable, recording a total revenue of R$13 billion from betting in Brazil, an increase of 71% compared to 2020.
Brazil stands out in betting market data at a global level
Brazil's sports betting numbers stand out globally, with more than 3.19 billion hits, representing 22.78% of the world total. This number puts Brazil ahead of nations traditionally associated with the betting universe, such as the United Kingdom, which registered 1.61 billion hits, followed by Nigeria with 1.29 billion.
With the Brazilian betting market growing rapidly and generating billions in revenue, the main factor for success for companies in this sector is to have the correct regulatory compliance. Companies that do not comply with the legislation will be forced to cease their activities, and no matter how hot the market is, no business survives this. Below, we will detail how data can be used in the betting market not only to fully meet regulatory requirements, but also to prevent fraud and other types of crimes. Check it out!
Understand the relationship between data and the betting market
One of the main obligations established in the regulation of the betting market is the need to limit who can and cannot place bets, especially on sporting events. Likewise, there is an obligation for betting operators to identify and monitor their customers on a basis similar to that established for financial market agents. In both cases, public data and information can (and should) be used to verify individuals. See below how this works in practice:
Know-Your-Customer
Just like companies operating in the financial market, betting operators need to verify a series of important registration information about their customers, in a process known as “ know-your-client ” (or, more commonly, KYC). This includes identifying politically exposed persons, checking whether or not the individual is on sanctions and restriction lists, and several other relevant data to understand the customer’s risk level.
While most of this information is publicly available, using a quality database with fast response times, such as BigDataCorp's KYC query , is critical to ensuring that the customer experience is not impacted.
Identifying Unfair Gamblers
One of the main provisions within the regulation of the betting market is the need to identify and limit the actions of undue bettors. Betting companies are responsible for preventing anyone who could influence the outcome of an event from being able to bet on that event, as well as identifying other risky individuals.
Just like in the case of KYC, there is public data available that allows this type of verification to be carried out automatically and efficiently. However, existing databases are highly fragmented and unstructured, making it difficult to access and verify data. Fortunately, BigDataCorp has gathered all the data you need in a single query to identify unethical bettors quickly and cheaply.
Preventing fraud and crime in the betting market
One of the biggest financial risks associated with the betting market, whether online or offline, is the use of gambling as a mechanism for money laundering by criminals and wrongdoers. Regulation of this market places the duty of preventing fraud and crimes in the betting market as a responsibility of betting operators. Therefore, these companies need to identify high-risk customers at the time of registration and monitor the transactions being carried out by these customers, so that they can prove to the authorities that they are effectively fulfilling this duty.
In addition to the systemic risks exemplified in the previous topics, betting operators, like any company that deals with financial transactions in the digital environment, are subject to fraud. Accounts created with fraudulent credit cards, registrations made under other people's CPFs, and all sorts of fraud and scams will be increasingly applied in this market.
Fraud prevention is therefore essential. The sooner companies implement effective processes to block fraudsters, the sooner they will be sending the message to the market that they are not an easy target and that they truly care about the security of their systems and their users. BigId is a complete fraud prevention solution , with different protection mechanisms that can be adapted to the specific needs of each business, even in the betting market.
Learn more about how BigDataCorp can help your business
The betting market is a clear example of the power of data in the business world. However, this sector is not the only one to reap the strategic benefits provided by the intelligent use of information.
From innovative startups to global conglomerates, the ability to access and analyze reliable data has become a cornerstone of success across a range of industries. However, the real competitive advantage lies not only in having information, but in having verifiable and reliable data solutions at your disposal that can accurately guide strategic decisions.
In this context, BigDataCorp plays a fundamental role. Committed to democratizing access to data, our company stands out for capturing, structuring and distributing public information on an unprecedented scale.
With a rigorous process that ensures the origin of each piece of data, we guarantee compliance with the LGPD and other privacy legislation, thus offering a solid foundation for companies of all sizes and sectors to grow and innovate.