When publishing aconciergeestablishing a series of new rules for the operation of sports betting and online gaming companies in the country, on July 12th, the Prize and Betting Secretariat of the Ministry of Finance took the definitive step to consolidate a trend that has been solidifying in the field of legal technology for several months: the increase in investigations into the integrity of organizations involved in this ecosystem as well as the clients and partners of the so-called Bets. Kronoos, a platform that conducts research across thousands of sources to verify the integrity of individuals and companies, has already experienced a 40% increase in proposal requests originating from betting houses and is preparing for an increase in new requests in the coming months.
In practice, the document published by the Secretariat establishes the requirement for betting and gaming promoting institutions to systematically classify the risk of bettors, employees, partners, and outsourced service providers. In Article 11 of the general provisions, the text states that "The betting operator must submit an annual report to the Prize and Betting Secretariat by February 1st of the following year, with information on good practices adopted in the previous year, in order to comply with the provisions regarding policies, procedures, and controls established in this Ordinance."
For Kronoos CEO Alexandre Pegoraro, some items present in the ordinance make it unfeasible for these betting houses to operate without the use of cutting-edge technological solutions. "These companies will have to provide detailed reports on the legal and reputational conditions of their users, as well as of other organizations they may interact with for their business operations. Humanly, it is impossible to obtain this level of information about such a large volume of individuals and legal entities as necessary to ensure the operational health of this type of enterprise," he says.
He cites as an example item II of article 16 of the resolution. The wording of this point states that qualification procedures must include measures aimed at verifying the status of the bettor or platform user as a politically exposed person (PEP), a family member up to the second degree, a representative, or a close collaborator of a person in this condition, in accordance with the regulation issued by Coaf.
“Performing this type of verification is an extremely technical and complex task. Therefore, to comply with this type of obligation, the best way for betting companies to comply with the law quickly, efficiently and with less investment is to partner with companies that develop specialized technology for this purpose. They can do all this in a matter of seconds, with a highly accurate level of accuracy and only charge for the volume of use”, he explains.
