The debate will form the basis for discussions on two bills that seek to tighten advertising in the online sports betting sector (PL 2.985/2023 and PL 3.405/2023).

Senator Carlos Portinho (PL-RJ), rapporteur for PL 2.985/2023 and author of one of the requests for the hearing, said that the bill is a response by parliamentarians to the ‘few results’ achieved by the federal government in trying to curb what he considers ‘predatory advertising’. Portinho also questioned the effectiveness of filters that bar children and teenagers, who are prohibited by law from playing games.

The hearing was chaired by Senator Leila Barros (PDT-DF), president of CEsp

Government action

The Ministry of Finance's Secretariat for Prizes and Betting (SPA) is responsible for creating rules and overseeing the sector. Ordinance 1231 of July 2024 provides rules for online betting advertisements. However, all the regulations that began in 2024 went through a transition period - which led to the authorisation of around 90 companies - and only came fully into force this year. Online betting has been authorised since 2018.

The SPA representative, Daniele Correa Cardoso, said that the legislation already has several tools that were suggested by parliamentarians and guests during the meeting. This is the case with facial recognition to prevent bets being placed by children and the prohibition on linking bets to easy winnings, extra income or investments.

“Since January we have been concerned with monitoring and inspection. Either ex officio or when we receive a complaint, we analyse it and the team opens an inspection process to remove the content that breaks the rules. The challenge is precisely the speed with which this happens, considering that we are talking about a digital environment”, she explained.

Daniela also pointed out that advertisements in the betting sector have the relevant participation of the National Advertising Self-Regulation Council (Conar), which encourages self-regulation in the sector. According to Daniela, the SPA's partnership with Conar has been ‘very effective’.

Insufficient warnings

In the opinion of public defender Thiago Henrique Cunha Basílio, who works in the state of Rio de Janeiro, betting adverts do not give the necessary dimensions about the emotional and financial risks involved in betting.

The CEO of the betting company SuperBet Brasil, Alexandre Fonseca, agreed that communication about the possible harm of betting needs to be enriched. However, for him, the challenge is to reach the betting companies not authorised by the SPA, which will not follow the legal requirements for advertising.

"We have 20,000 illegal websites operating in Brazil today, which is where the gambler ends up finding shelter, where minors end up finding fertile ground to get involved in gambling. I think that today we have a much more serious problem, which is combating illegal betting.

Reverse effect

Pietro Cardia Lorenzoni, legal director of the National Association of Games and Lotteries (ANJL), argued that banning or restricting betting advertisements too much can harm consumers when it comes to identifying companies authorised by the government. According to him, this was the result that Italy observed when it banned advertising in the sector in 2018.

"Brazilian consumers still don't know which games are legal and which are illegal. Advertising is a way of informing the consumer about the legal market. [In Italy] the impact of the ban was negative. Consumers have been diverted to the illicit market. This means no consumer protection, no protection for children and adolescents and no funding for public policies.

Law 14.790 of 2023 stipulates that 12 per cent of the revenue from betting companies (after paying out prizes to punters and the income tax levied) should be allocated to various areas, such as sport. The vice-president of the Brazilian Olympic Committee (COB), Yane Marques, said that the committee received its first funds in March.

Numbers

Around 10.9 million Brazilians over the age of 14 (6.9 per cent of the population) gamble in a ‘problematic’ way, and one in eight of these have betting patterns compatible with addiction. The data was presented by the representative of the Federal Council of Medicine, psychiatrist Christina Hajaj Gonzalez, based on research carried out this week by the São Paulo State Research Foundation (FAPESP).

She also pointed out that, according to the study, four per cent of people who gambled in the last year were between the ages of 14 and 17 - the age most susceptible to addiction. In response to Senator Romário (PL-RJ), she said that ‘neither SUS, the supplementary health system nor the private health system’ have the structure to deal with the estimated number of gambling addicts - the so-called ludopatas.