Kambi: Brazil’s Betting Ban Undermines Investor Confidence and the Integrity of Sports

A Kambi director has commented on Brazil’s recent gaming U-turn, which resulted in a sudden ban on online gambling less than two years after the market launched. According to him, the country’s sudden change of heart could have significant adverse effects. Lenoble Warned of Significant Adverse Effects Mateo Lenoble, director at B2B provider for sports betting services Kambi, has shared his thoughts on Brazil’s sudden change to backtrack on its online gambling legalization. Speaking to gambling news outlet iGaming Business, he said that the ban has already dealt a significant blow to investor confidence in the local gaming market. Lenoble explained that the ban on online betting is a cause for significant concern as even a resumption of operations would not eliminate the legal uncertainty created by the recent prohibition. At the same time, Lenoble argued that the ban on regulated betting could cause certain integrity issues. He told iGaming Business that simply eliminating legal betting doesn’t mean that players will stop placing bets – instead, they will now do it with less savory offshore companies. As a result, Lenoble asserted that banning legal gaming would empower the black market and, by extension, undermine the integrity of the sports sector, since offshore operators can sometimes facilitate fraud, weakening the government’s ability to control sports and prevent illicit activity, such as match-fixing. At the same time, playing with unlicensed operators increases the risks of gambling harm for players, Lenoble pointed out. Kambi Was Affected, Some of Its Partners Were Hit Even Harder When asked about how his own company will be affected by the changes, Lenoble confirmed that the ban does indeed affect Kambi. Since Kambi has a firm commitment to only operate in regulated markets, the ban means that Kambi’s Brazil-facing projects have been disrupted. Lenoble added that if Brazil changes its mind, it will remain an attractive market, which is why Kambi would probably continue serving it. However, he noted that uncertainty surrounding Brazil is likely to persist for some time even if the country decides to allow online gambling once again. In the meantime, Kambi continues to support its local partners until a final decision on the gaming ban matter is reached. He added that companies that operate only in Brazil have been disproportionately affected by the ban. Lenoble emphasized that a legal market is necessary to prevent some sports-related fraud, since it brings betting into the light and ensures stronger regulation. His team, in particular, has strong commitments to preventing fraud and is a member of the International Betting Integrity Association – IBIA. Lenoble concluded that the projected player migration to the black market carries risks for both the sports sector and bettors themselves since the government and local regulators have limited power over offshore companies.