A bill to ban online sports betting in Brazil has been proposed by senator Sérgio Petecão on concerns that betting impacts mental health and drives financial debt.
Bill 4.031/2024 was put to the senate on 21 October. It is the latest in a series of initiatives by politicians to restrict online betting in Brazil, months before the licensed market is scheduled to open on 1 January 2025.
Preparations to award licences are in motion but various senators and public figures have expressed concern. Key issues are the impact that online betting can have on vulnerable groups including the elderly and those receiving social benefits.
Concern stems from a controversial study that claimed regular bettors have sacrificed money meant for food and medicine to wager. Despite its small sample size (1,337 consumers polled) and controversial findings, the study received significant media coverage.
Industry awaiting President Lula betting update
President Luiz Inácio Lula da Silva is expected to speak publicly on these issues and how the government expects to mitigate them ahead of the betting market’s launch.
This latest bill is the first to propose an outright ban on online betting, although it does not seek to prohibit retail betting. It was filed just 10 months after Lula signed Bill 3,626/2023 legalising online betting. Within the bill, the federal lottery is excluded from the ban.
“Bets made in person at physical service points remain lawful upon delivery of a printed ticket to the bettor,” the bill says.
Petecão’s argument is that retail betting is less likely to cause addiction as opposed to online, which is accessible at all times.
It requests that the law enabling online betting in Brazil is amended within 60 days of the bill being filed.
Less restrictive bills requesting spending caps for elderly and vulnerable bettors were filed in September. They also called for the ban on betting via credit cards to be brought forward. Lula is expected to respond to these measures shortly.
SPA actively cracking down on illegal market
The government’s Secretariat of Prizes and Bets (SPA) has been actively restricting illegal betting in the country. It blocked over 2,000 betting sites that are not approved by the regulator. Approved operators are those that filed licence applications by the 30 September deadline. Such operators would also have met any initial requirements put in place by the regulator.
The SPA has also actively sought to ensure players will be protected in the regulated market, including placing restrictions on marketing and ensuring operators have sufficient safeguarding methods in place.
