The Senate of Brazil has authorised a Commission of Inquiry (CPI) to examine and evaluate the financial impacts of the forthcoming Bets regime, the federal framework to regulate fixed-odds betting and online gambling in Brazil.
The inquiry was requested by Senator Soraya Thronicke, the representative of the state of Mato Grosso do Sul, who received the backing of 30 senators to launch the “CPI of Bets.”
According to SBCNoticias: “Thronicke called for the establishment of a CPI to examine the effect of gambling on the finances of Brazilian families.”
The request follows troubling insights from the Central Bank, which revealed that recipients of Bolsa Família, Brazil’s financial aid programme for poor families, had spent BRL 3bn (€500 million) on gambling, as monitored by the PIX payment system.
The financial liabilities of the Bets framework have become a pressing concern for the government as it moves to launch a federal fixed-odds betting and online gambling market.
In a meeting with senior ministers, President Inácio Lula da Silva warned that he would shut down the Bets market if it posed a danger to Brazil’s poor and vulnerable. The PT government is seeking stronger guarantees to safeguard the Bolsa Família fund and enhance protections against problem gambling.
The CPI will have 130 days to form a legislative team to lead an inquiry into the financial vulnerabilities of the Bets market.
Senator Thronicke recommended that the “CPI of Bets” focus on evaluating the impact of online gambling on consumers’ exposure to financial liabilities and debt.
Thronicke suspects that gambling software may be designed to exploit users while ensuring profits for online betting companies. Furthermore, the CPI should evaluate Bets’ safeguards against money laundering and currency evasion.
Supporting the investigation, senators called for the CPI to examine the impact of gambling on addiction. The inquiry has broad backing, as “both opposition and government-aligned senators agree on the urgency of the CPI to clarify the effects of gambling on the national economy and the Brazilian population.”
In broader developments, the launch of the Bets regime dominates the Senate’s agenda, as final measures are requested by senators to safeguard the federal market launch.
Senator Alessandro Vieira proposed restricting or banning gambling for individuals listed in credit protection systems, while Senator Eduardo Girão aims to prevent celebrities from promoting gambling at sports events.
Ahead of the Bets launch in 2025, economic and public health concerns have been raised by senators. The growing debt of poor families due to gambling, reportedly exceeding 35%, has been flagged as a significant economic and public health concern.
However, the Ministry of Development countered these claims, pointing to a 0.6% rise in retail sales in July 2024 as evidence that gambling has not negatively impacted retail sales or increased family debt.
