Brazil betting CPI chief demands tighter access to online gambling

Senator Soraya Thronicke, the appointed rapporteur for the parliamentary inquiry commission (CPI) addressing the state of betting in Brazil, has issued a clarion call for legislative action to restrict consumer access to online gambling platforms.

During a critical meeting on March 25, Thronicke articulated her concerns regarding the burgeoning gambling landscape, particularly in light of Brazil’s forthcoming legal online market launch on January 1. The CPI, established in November of the previous year, aims to address the increasing worries surrounding the social and economic impacts of gambling within the nation.

At the recent session, Thronicke urged Congress to implement new restrictions that would limit public access to online betting sites amidst allegations that rampant illegal gambling operations flourished during the legislative delay from the initial 2018 bill until its controversial approval in December 2023. Many stakeholders believe this gap has exacerbated issues related to gambling addiction among Brazilian citizens.

“We must create significant hurdles for individuals accessing online betting sites,” Thronicke emphasized at the hearing. “Our role is to legislate effectively to mitigate the risks and potential harms associated with this activity.”

She further remarked, “We are in a dynamic environment, adapting to changes while striving to implement effective governance. This is an uncharted territory for all parties involved.”

Insights from Former Gambling Addict: A Call for Stricter Advertising Regulations

During the CPI meeting, businessman and former gambling addict André Rolim shared his personal journey with addiction and advocated for the introduction of stringent regulation on gambling advertisements and restrictions on playing durations.

However, Rolim poignantly conveyed that such regulations would not have curtailed his compulsive gambling behavior during his addiction. His recovery was ultimately facilitated by a rehabilitation program.

“I believe no policy could have deterred me,” Rolim stated. “In the throes of addiction, an individual will endeavor to find a way to gamble regardless of the restrictions in place.”

He underscored the fallacy in believing that limiting access would effectively manage behavior: “An addict will always maneuver around barriers. The notion that a person who has financial resources can easily quit gambling is misleading.”

In response to the increasing gambling activities, several legislative measures have been proposed aimed at curbing advertising in Brazil. One critical initiative is PL 3563/2024, introduced last year, which seeks to ban advertising for fixed-odds sports betting nationwide and also prohibit sports sponsorships associated with gambling.

Senator Damares Alves, rapporteur for the bill, reiterated her commitment to enforcing a ban on gambling advertisements during the CPI meeting. “When treating an alcoholic, we don’t expose them to alcohol. How can we effectively help a gambling addict while simultaneously bombarding them with advertisements for betting options?” she questioned.

“In our current environment, it is virtually impossible to exist without being bombarded by gambling promotions.”

The Vulnerability of Addicts in Brazil’s Expanding Online Gambling Market

Brazil’s protracted grey gambling market has led many experts to assert that the nation temporarily boasted one of the highest concentrations of gambling websites globally, facilitating easier access compared to other jurisdictions.

Rolim expressed his apprehensions regarding this accessibility, juxtaposing it with the hurdles associated with illegal land-based gambling. He explained how the availability of online betting has drastically reduced barriers that previously impeded access.

“Engaging in land-based betting necessitated travel and careful planning— disclosing your intentions to family members was essential,” Rolim remarked. “In contrast, online betting creates an illusion of privacy; one can claim they are merely stepping outside to watch a movie while gambling takes place inconspicuously.”

“Previously, accessing online betting was complicated; it required international cards and multiple safeguards that prevented 24/7 gambling.”

With new regulations mandating companies operating under federal licenses in Brazil to follow stringent Know Your Customer (KYC) protocols—including facial recognition technology for identity verification—there is an ongoing effort to reinforce responsible gambling practices. Bettors are also required to register using bank accounts established with payment institutions sanctioned by the Central Bank of Brazil, adding another layer of accountability to online gambling in the country.