Brazil's MPs propose restrictions on bets for social program participants and ban on betting advertising

Bills filed by deputies and senators want to restrict betting amounts for those enrolled in the Unified Registry, the elderly and people with negative credit ratings or active debts, as well as banning electronic payment methods such as Pix.

Among the measures suggested are limiting betting amounts for beneficiaries of social programmes, banning betting advertisements and even Pix transfers.

Senator Alessandro Vieira (MDB-SE) filed two bills on Wednesday 26th. The first proposes limiting the betting amounts of people enrolled in CadÚnico - used to include low-income families in social programmes such as Bolsa Família - the elderly and people who have been denied credit or have active debts.

The proposal suggests that these groups be ‘limited to financial losses, whether in absolute value or percentage; restriction of monthly transfers to betting platforms and limitation of monthly amounts transferred, based on the income declared by the bettor’.

The bill's justification cites a study by the Central Bank which revealed that, in August, 5 million people from Bolsa Família beneficiary families sent R$3 billion via Pix to betting platforms.

‘We understand that Bolsa Família is an important income distribution benefit. Although it is argued that it is the families themselves who best know how to use it, according to their specific needs, it cannot be denied that the beneficiaries are in conditions of social vulnerability that demand limitations on betting,’ says Vieira.

Advertising

The senator's second bill, meanwhile, proposes a total ban on gambling advertising throughout the country. The exception would be the display of advertising inside physical or virtual betting establishments, as long as it is accompanied by messages warning of the risks of gambling.

The proposal includes limiting bets by amount, percentage of income and risk behaviour, as well as increasing taxation to 30% on net winnings. The law passed last year provides for a 15% tax for gamblers on winnings of more than R$2,112.

Congressman Mendonça Filho (União-PE) has proposed classifying betting adverts with an age indication and restricting the time at which they are broadcast, as well as demanding clear warnings about the risks of addiction and the financial losses associated with games of chance.

Deputy Luiz Gastão (PSD-CE) is gathering signatures to file a Proposed Amendment to the Constitution (PEC) that equates sports betting with alcohol, tobacco, pesticides and medicines, and imposes legal restrictions on commercial advertising in the sector, with the requirement to warn of the harm.

At the end of July, the Ministry of Finance published an ordinance with rules to prevent and punish abusive advertising and require betting companies to take action to deal with addiction disorders - including suspending players with a ‘high risk of addiction’.

There are, however, no specific criteria for this classification, which would be up to each company - ‘as long as it meets the minimum requirements defined in the ordinance’, the ministry emphasises. Furthermore, these rules will only apply in January 2025.

On Wednesday, the Minister of Finance, Fernando Haddad, said that the regulation provides for a kind of monitoring of CPFs. ‘We'll be able to have an alert system for people who are showing a certain psychological dependence on gambling,’ he said during a conference at Safra bank.

Pix and cards

Congressman Carlos Hauly (Podemos-PR) has proposed a ban on any electronic means of placing bets - including Pix, the predominant means of transfer to platforms. He suggests that the use of electronic means for betting should result in a fine of up to R$5 million, suspension of the platform's activities for 12 months and even the loss of the authorisation granted by the Treasury to operate.

The Ministry of Finance's regulations already provide for a ban on the use of credit cards in betting, but the rule only comes into force in January 2025.

Faced with pressure from the financial and retail sectors for an immediate ban on this type of betting, the platforms that make up the National Association of Games and Lotteries (ANJL) have stated that they will bring forward the ban on the use of credit cards to 1 October - which, however, represents only 3% of bets on the member platforms.