Measures to mitigate the risks of online gambling in Brazil

The measures announced by the Ministry of Finance to mitigate online gambling addiction and debt, two of the concerns that have arisen since the sport was approved by Congress and sanctioned by President Luiz Inácio Lula da Silva at the end of last year, are welcome. Legalisation was undoubtedly positive. 

There's no point in maintaining a hypocritical ban if bets are everywhere, even on the shirts of the big football teams. Having existed for years, they didn't contribute to the country because they didn't collect taxes. Although positive, regularisation is not without its challenges. The biggest is the risk of addiction and financial ruin.

Retailers puzzled by stagnant or falling sales at a time when the labour market is booming hired a consultancy to examine the possible causes. One of the conclusions was that, in classes C and D, the amounts spent on betting are being diverted from parts of the budget previously earmarked for consumption or savings. 

In 2023, betting generated between USD 12.5 billion and USD 20.83 billion. This year, the estimate is that the figure will reach USD 23.53 billion. The mismatch between rising family income and falling or stagnant sales in segments such as fashion, furniture and personal and household items is not just bad for companies. It could be a sign of dependency.

The Finance Ministry's ordinances published last week attempt to tackle the problem. Bookmakers will have to monitor user behaviour and may suspend use of the platform if necessary. To do this, they will have to have analytical tools and methodologies to assess the profile of bettors and the risks of disruption. At the time of registration, they will need to provide information about the risks, not only of addiction, but also of losing money.

The new rules regulate advertising and strategies for attracting customers. A key point is the veto on advertising that presents gambling as "socially attractive" or that contains statements by celebrities or influencers suggesting that gambling "contributes to personal or social success or improves financial conditions". Companies will have to use clear language, respecting the protection of under-18s and vulnerable groups. Under the rules, betting companies will be legally responsible for advertising their affiliates and will be subject to inspection by the Secretariat for Prizes and Betting (SPA), linked to the Ministry of Finance.

It is essential for the state to ensure that gambling is not excessive, by regulating advertising, protecting children and teenagers and monitoring damage such as addiction and indebtedness. In addition, control and inspection bodies will need to be vigilant to curb crimes such as money laundering, fraud and tax evasion in a sector where large sums of money circulate.