Brazil's CPI and the Fight Against Match-Phishing

Robinson Barreirinhas, the Special Secretary of Brazil’s Federal Tax Service, is set to provide testimony before the Parliamentary Commission of Inquiry (CPI) investigating match-fixing. He will clarify the process for withholding taxes on sports bets made by foreign companies operating in Brazil, a measure designed to combat manipulation within the sports betting sector. The country established the Commission to Combat Match-Fixing in April, which will now play a significant role in these efforts.

According to regulatory decree No. 827,   operators wishing to engage in gambling activities in Brazil must establish their headquarters within the nation. While foreign companies can still obtain licences, they are required to have a local subsidiary with at least 20% of its share capital owned by a Brazilian. Additionally, these companies must secure a joint certificate from both the Special Secretariat of Federal Revenue and the Office of the Attorney General of the National Treasury to confirm their tax registration in Brazil. 

In his explanation, Portinho stressed the importance of determining whether sports betting platforms operating legally in the national market—such as those sponsoring many clubs in Brazil’s Serie A and B leagues and advertising on numerous television channels—are compliant with local laws. He emphasised that business operations involve billions of Brazilian reals, which are often sent abroad without appropriate tax payments.

CPI and suspicious financial transactions

In early September, the CPI will host representatives from the Finance Ministry and Abaesp, Brazil’s sports betting association, to discuss methods for identifying and addressing suspicious transactions. Regis Dudena, the secretary of the Prizes and Betting Department (SPA) within the Finance Ministry, will be the ministry's representative, while Rodrigo Alves, the President of Abaesp, will represent the association. Dudena is anticipated to share insights on payment processes and how the SPA will oversee operators' adherence to regulations. Meanwhile, Alves will outline the measures that bookmakers will implement to combat match-fixing.

Former referees, IBJR and sports justice representatives to be called for consultations

The CPI will also vote on three requests for testimony. One invitation is directed to Luiz Otávio Veríssimo Teixeira, the president of the High Court of Justice for Sport in Football (STJD), and STJD Attorney General Paulo Emílio Dantas Nazaré, to discuss sports betting manipulation. Additionally, former football referee Alfredo Löbeling and representatives from the Brazilian Institute for Responsible Gaming (IBJR) may be called to address issues related to the deficiencies of the video assistant referee (VAR) system implemented by the Brazilian Football Confederation (CBF) and its ramifications on sports betting. Another matter up for a vote is a request for the STJD to provide details on all cases of match-fixing currently being examined in sports courts, specifying the clubs and athletes involved. There are concerns that, in the absence of a centralised information source, individuals suspected of wrongdoing in one state's sports court may simply relocate to another state to evade consequences.

How does CPI combat sports betting manipulation?

The CPI addressing match-fixing was initiated following claims made by John Texor, the owner of Botafogo de Futebol e Regatas, regarding the manipulation of São Paulo players in a match against Palmeiras. During the CPI hearings, Texor reiterated these accusations, prompting Palmeiras president Leila Pereira to suggest that Texor should be banned from Brazilian football if his evidence is lacking. Senator Jorge Cajuru, the head of the CPI, indicated that Texor should be expelled from Brazil if his claims are proven unfounded.

Rafael Marchetti Marcondes, chief legal officer of Rei do Pitaco and the Brazilian Institute for Responsible Gaming (IBJR), expressed that while the CPI marks a positive step in combating match-fixing, enhanced collaboration is essential. “We should view the CPI as merely the beginning of a broader effort that requires the involvement of various entities, including the federal police, the public prosecutor’s office, sports federations, clubs, and society at large, along with the sports betting regulator,” stated Marchetti Marcondes.