Money laundering and betting manipulation in Brazil

Júlia Moura November 19, 2024
Money laundering and betting manipulation in Brazil

The Parliamentary Commission of Inquiry (CPI) on Bets, established in the Senate in November 2024, examines the impact of sports betting in Brazil. Its main goal is to investigate the rapidly growing online betting market, identifying irregularities and associated crimes like money laundering and match-fixing.

Senator Izalci Lucas (PL-DF), the commission’s president, submitted an extensive number of requests, totaling 158 for summons and information. Among those called to testify are Darwin Henrique da Silva Filho, CEO of Esportes da Sorte, and André Gelfi, president of the Brazilian Institute of Responsible Gaming (IBJR), both representing key players in the sector.

Darwin Henrique da Silva Filho leads Esportes da Sorte, one of Brazil’s top betting platforms. He inherited and digitalized his family’s business, originally rooted in Pernambuco’s illegal “jogo do bicho” operations. Recently, Darwin has faced allegations of money laundering, with investigations leading to asset freezes and search warrants, though the company insists on its full compliance with current legislation.

Simultaneously, Soraya Thronicke (Podemos-MS), the commission’s rapporteur, requested the presence of Ednaldo Rodrigues, president of the Brazilian Football Confederation (CBF), to clarify the entity’s role in supervising sports betting. The CPI also evaluates the economic and social effects of online betting, a sector estimated to generate billions annually while raising concerns about financial risks for consumers, especially younger demographics.

In 2023, Brazil’s federal government introduced preliminary regulations for the betting industry, outlining tax guidelines and operational requirements. However, the CPI’s findings aim to identify regulatory gaps and propose measures to enhance consumer protection and curb illicit practices.

The next SiGMA event is approaching, and the next one is in Dubai! Find more information about SiGMA Eurasia by clicking here.

Recommended for you