Senator Sérgio Petecão has presented a measure to outlaw online sports betting in Brazil, citing worries about the negative impact on mental health and financial stability. The measure, formally known as measure 4.031/2024, was introduced to the Brazilian Senate on October 21, 2024, and tries to curb the fast expanding online betting business only months before it is completely regulated and licensed.
Concerns About Mental Health and Financial Debt
Senator Petecão is concerned about the impact of internet betting on bettors’ mental health and the financial strain it might cause for families. The senator claims that internet betting platforms are available 24 hours a day, which increases the danger of addiction and compulsive gambling practices. Petecão argues that the 24-hour availability of online betting platforms creates a false perception of easy victories and can lead to addiction. This jeopardizes their personal life, relationships, and finances.”
The suggestion is in reaction to mounting evidence that many Brazilians are incurring enormous financial debt as a result of internet betting. Despite its tiny sample size, one contentious research drew international attention for claiming that some gamblers were gambling with money intended for food and medication. These findings have sparked public debate about the risks of expanding the internet betting business.
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Bill calls for an immediate halt.
The new measure proposes that the legislation allowing internet betting in Brazil, which was approved earlier this year, be revised within 60 days to outlaw virtual gaming. While in-person betting at physical venues would remain permitted, with bettors forced to acquire printed tickets, the bill contends that internet betting is a far more harmful activity owing to its 24/7 availability and the anonymity it provides gamblers. Petecão argues that retail betting has lower addiction dangers than internet betting.
The senator’s suggestion comes as the Brazilian government plans to open a legal internet betting industry in January 2025. As preparations continue, other legislators and public figures have raised similar worries, particularly about the possible impact on vulnerable groups such as the elderly and those who rely on social services
Government Response and Lula’s Position
President Luiz Inácio Lula da Silva is anticipated to address these concerns and explain the government’s position on the topic ahead of the regulated betting market’s scheduled inauguration. In response to requests for stricter regulations, Lula has already approved Bill 3.626/2023, which legalizes internet betting. However, recent developments and concerns may motivate more action. Less severe suggestions, such as spending limitations for disadvantaged people and an expedited prohibition on using credit cards for betting, are also being considered.
In addition to Petecão’s measure, the Brazilian government has aggressively worked to combat illegal betting through its Secretariat of Prizes and Bets (SPA). This regulatory agency recently shut down more than 2,000 unauthorized betting sites operating in Brazil. The SPA has also focused on ensuring that licensed operators satisfy stringent regulations, including as protections to prevent players from gambling addiction and unethical behaviour.
Opposition from the betting industry
While the planned prohibition has sparked interest, it faces considerable opposition from the betting sector. Licensed operators believe that a prohibition would just push more bettors to illicit sites, undermining the government’s attempts to regulate the business. Furthermore, with the legal market’s debut approaching, many in the industry are concerned that these severe steps would delay progress and impede the establishment of a regulated, safer betting environment.
Supporters of the legal betting industry see continuous attempts to safeguard customers, such as advertising limitations and player protection procedures, as positive moves forward. Advocates for legalization argue that a regulated market will lessen harm by providing adequate monitoring and resources for managing compulsive gambling.
Impact on Bolsa Família and Social Benefits.
Data from Brazil’s Central Bank shows that participants of Bolsa Família, the government’s social assistance program, have used their benefits to place bets online, adding to the controversy surrounding internet betting. The disclosure has prompted calls for stronger rules on how Bolsa Família cash can be utilized. Senator Cleitinho has submitted a separate law that would restrict the use of these monies to certain items, ensuring that they are spent on essentials such as food and healthcare rather than gaming.
As the Brazilian government debates these concerns, the decision will determine the future of the country’s betting business. It’s unclear if Petecão’s measure would result in an outright ban or more restrictions. In any case, Brazil is faced with a vital issue about how to balance commercial interests, public health, and consumer safety in the rapidly expanding online gaming business.
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