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The fake ball scandal is jeopardizing the credibility and future development of the Latin American sports betting industry.

PASA News
PASA News
·Mars

With the rapid growth of the sports betting industry in Latin America, match-fixing is quietly becoming a "cancer" threatening the sustainable development of this industry. In a special report by iGF's sister publication "iGamingFuturo", editor Jordi Bacardi delves into this increasingly severe issue.

Frequent cases, continuous scandals

In February this year, Brenda Garcia, the captain of the Mazatlan team in the Mexican Women's First Division Soccer League, was banned from all soccer matches for six years for allegedly conspiring with several teammates to manipulate match results through WhatsApp. In England, Brazilian national player Paqueta, who plays for Aston Villa, is also under investigation for "voluntarily receiving cards" in a match, allegedly to give a "surprise bonus" for his brother's birthday celebration.

These incidents expose that match-fixing has become a systemic risk in Latin America, especially in Brazil. Experts point out that this phenomenon not only undermines the fairness of the games but also threatens the two core values that the sports betting industry relies on: credibility and unpredictability.

Match-fixing: Worse than doping

"Match-fixing is more terrifying than doping," says Tiago Barbosa, Integrity Director for Latin America at Genius Sports, "those who dope want to win, but those involved in match-fixing are actively losing."

Barbosa notes that the particularly vulnerable reason in Latin America is due to the unbalanced structure of the football ecosystem—most professional players have meager incomes and unstable livelihoods, making them easy targets for temptation. Minor leagues without TV coverage are particularly susceptible to manipulation, as players believe that even if they perform abnormally in matches, no one will notice.

Technology and cooperation against match-fixing

Genius Sports collaborates with football associations in Brazil, Argentina, Mexico, and other countries, using data monitoring systems to detect abnormal match signals. Sportradar also renewed its contract with the Brazilian Football Confederation (CBF), monitoring over 8,200 matches annually.

Andreas Krannich, Integrity Director at Sportradar, points out that match-fixing is a global issue that requires continuous monitoring. He reveals that thanks to technological and cooperative efforts, the number of suspicious matches in Brazil has decreased by 48% in 2023 compared to the previous year.

Shared responsibility, enhanced regulation

The Brazilian Responsible Gaming Association (IBJR) states that its members use artificial intelligence daily to monitor betting anomalies and report suspicious data to the International Betting Integrity Association (IBIA) when necessary. IBIA then forwards the clues to law enforcement agencies.

Fernando Vieira, CEO of IBJR, emphasizes: "Effective regulation is key to preventing match-fixing, which concerns not only market order but also industry reputation."

However, many industry insiders believe that the current measures against match-fixing are still far from sufficient. Police resources are strained, making it difficult to prioritize such cases. Roger Amarante, CFO of S8 Capital, states bluntly: "Many clubs and players' contracts do not even prohibit match-fixing."

Lack of legal deterrence

In Brazil, although match-fixing has been defined as a crime since 2012, with a maximum sentence of two years in prison, no substantial convictions have been seen to date. Recent charges brought against 16 players in Goiás state have also not yet resulted in substantial judgments. Some players are banned for two years, some only for 12 matches.

"It's a joke!" Barbosa angrily states.

Scandals affecting top teams

Even Flamengo, a Brazilian powerhouse with a broad fan base, has not been spared. Forward Bruno Henrique is under investigation for receiving consecutive yellow and red cards in a match against Santos, sparking speculation about his motives.

Match-fixing impacts investment and development prospects

Industry experts unanimously believe that if the match-fixing issue is not eradicated, it could potentially cause a catastrophic impact on the entire sports betting market. Amarante warns: "Without stricter penalties, not only will the industry's reputation be damaged, but international investors will also lose confidence."

As match-fixing scandals continue to erupt in Peru, Venezuela, several Central American countries, and Mexico, Latin American countries are being forced to confront this issue. The solution is not only to raise regulatory thresholds but also requires close cooperation among sports organizations, betting companies, law enforcement agencies, and technology service providers.

"Match-fixing not only tarnishes the games on the field but is also eroding the very foundation of the entire industry." This is a real challenge that the Latin American sports betting industry must face on its path to maturity.


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