The ministry of justice and public security (MJSP) in Brazil has contacted 17 betting operators requesting clarification over their plans to protect vulnerable consumers.
Through the National Consumer Secretariat (Senacon), the MJSP on Friday (1 October) requested the companies supply detailed information on advertising, bonuses and restrictions on access by minors to betting in Brazil.
Senacon has also called on the companies to explain their monitoring and blocking systems to prevent bets by minors and consumers at risk of falling into debt.
Among the 17 companies contacted are international giants Betano and Flutter Entertainment’s Betfair, as well as local brands such as BetNacional – soon to be owned by Flutter – and EstrelaBet. They will have until 11 October to respond with the requested information.
According to Wadih Damous, the national secretary for consumer affairs, the aim of the MJSP and Senacon request is to ensure companies are acting within the restrictions of the law.
“The increase in promotional practices and bonuses can make consumers vulnerable and expose minors to a universe of risk,” Damous said.
Studies fuelling the fire ahead of Brazil betting market launch
The MJSP’s request comes amid rising pressure on the betting industry over its impact on at-risk consumers, especially in regards to children and those in danger of falling into financial issues.
In August, a survey by market research specialist Hibou estimated 10% of the Brazilian population had experienced financial issues stemming from gambling.
Then, a controversial study by the Brazilian Society of Retail and Consumption (SBVC) claimed among those who dedicate a portion of their salary to gambling every month in Brazil, 23% had stopped purchasing clothes while 11% had cut their spending on healthcare and medication.
The SBVC study prompted the National Association of Games and Lotteries to respond with an open letter, within which it highlighted data from the Brazilian Institute of Geography and Statistics (IBGE) which instead showed household consumption expenditure had increased 1.3% in Q2 from the previous quarter, alongside a 4.9% year-on-year increase.
Bills proposed to restrict and even ban betting
With less than two months to go until the legal betting market launches in Brazil on 1 January 2025, a number of bills have been proposed with the aim of protecting vulnerable bettors.
PL 3,718/2024, presented by Senator Alessandro Vieira, would limit betting among groups such as the elderly and those registered in the active debt or credit protection registry. Meanwhile, Congressman Elmar Nascimento’s PL 3,745/2024 would limit betting spend to 15% of monthly income.
In October, Senator Sérgio Petecão presented Bill 4,031/2024 to ban online betting entirely in Brazil, although that proposal has been met with backlash.
Former special secretary for the brazil ministry of finance José Francisco Manssur warned a ban would be a backwards step, explaining proper regulation was the best way to protect bettors from harm.
With the legal market edging closer, President Luiz Inácio Lula da Silva is expected to speak publicly about the issues and how the government is planning to counter those concerns.
Many are blaming the recent problems on the long delay between the initial signing of betting legislation into law in December 2018 and the final chamber of deputies approval in December 2023, which some in the industry feel gave way to a proliferation of illegal sites and a subsequent rise in issues relating to fiscal debt and contentious advertising.
The list of companies from which the MSJP and Senacon have requested information is as follows:
- Bet365
- Betano
- KTO
- 1xBet
- Parimatch
- SportingBet
- BetNacional
- Superbet
- Rivalo
- EstrelaBet
- IO (Sportsbet.io)
- Bet Sul
- Betfair
- PixBetc
- Pix365
- Esportes da Sorte
- VaideBet
