Betting CPI chief blames Bolsonaro government for Brazil problems

Senator Soraya Thronicke’s Insights on Brazil’s Gambling Landscape

During a recent session of the Parliamentary Inquiry Commission (CPI) focused on betting in Brazil, Senator Thronicke expressed significant concerns regarding the ongoing issues in the nation’s gambling sector. As the rapporteur for the CPI, she pointed to the lack of substantial progress under former President Jair Bolsonaro as a critical factor in Brazil’s current gambling challenges.

In December 2018, preceding Bolsonaro’s administration, former President Michel Temer signed legislation aimed at regulating sports betting across the country. However, critics assert that Bolsonaro’s tenure saw minimal advancement in implementing these regulations. This stagnation has been linked to pressing issues today, such as increasing addiction rates and escalating family debts attributed to unregulated gambling practices.

Thronicke emphasized the chaotic environment that has emerged, stating, “From January 1, 2019, to December 31, 2022, who was president? Jair Messias Bolsonaro. During this time, Brazil ascended to first place globally in terms of betting volume and participant numbers. This situation was allowed to run unchecked.”

Her remarks underline the precarious balance of a grey market that has flourished due to a lack of regulatory oversight. Thronicke further noted that past attempts by governmental officials to address gambling regulation were stymied without clear accountability. “Former ministers have indicated that while this issue was prioritized, actual regulatory measures were neglected. Why was this allowed to happen? We need answers.”

Moreover, Thronicke linked the scarcity of budgetary resources to the failure of the previous administration to harness potential revenue from a regulated gaming sector. “It’s estimated that the Brazilian government is missing out on BRL 15 billion annually due to unregulated gambling activities. Imagine the potential funding for health and education that could have been generated during 2019, 2020, and 2021.”

Calls for Extension of the Betting CPI

Reports surfaced last week indicating that the betting CPI’s duration might conclude prematurely, as Senate President Davi Alcolumbre believed the committee had sufficient time to prepare a report. Senator Jorge Kajuru expressed frustration, characterizing the CPI as a “circus” due to its apparent inefficacy.

With the CPI set to dissolve on June 14, Senator Izalci Lucas advocated for an extension, particularly following the non-appearance of two betting platform owners who were summoned to provide testimony. One of them, social media influencer “Jon Vlogs,” cited his absence due to international travel. Thronicke responded, asserting, “These individuals possess significant resources. International travel is trivial for them. This lack of appearance reflects poorly on their commitment.”

Lucas emphasized the necessity of extending the CPI to ensure all testimonies are gathered to inform legislative improvements. “If the goal is indeed to investigate and enhance our gambling laws, we need additional time to achieve that objective,” he asserted.

The CPI: A Controversial Circus

Established in November, the CPI faced scrutiny soon after its creation when allegations of extortion surfaced in Brazilian magazine Veja. Criticism escalated after Senator Cleitinho Azevedo’s questionable request for a photograph with influencer Virgínia Fonseca during her testimony, where she discussed her promotions of betting platforms.

Thronicke denounced Fonseca’s demeanor, voicing skepticism regarding the validity of her testimony. Additionally, she has called for the replacement of Senator Ciro Nogueira on the commission over concerns of potential conflicts of interest after he traveled on a private jet owned by a prominent figure in the betting industry.

Upcoming Advertising Proposals under Review

The Brazilian Sports Committee was set to deliberate on proposals aimed at tightening advertising regulations related to gambling. If passed, these measures would restrict advertisements during live sports broadcasts to just five minutes before and after match airings. Sports organizations are apprehensive that such limitations could greatly diminish their opportunities for revenue through betting-related advertisements.

Previously, Senator Eduardo Girão reiterated his stance advocating for a complete ban on betting activities, citing concerns about the detrimental influence of gambling sponsorships on the integrity of the football sector.