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The Central Bank of Brazil has monitored R$30 Billion per month since Bets activation. However its leadership warns ministers that Pix payment system cannot be ssed as a consumer control…
The highest-ranking officials of Brazil’s Central Bank have become the latest figureheads to provide testimony to the Commission of Inquiry on Online Gambling (CPI of Bets).
Gabriel Galípolo, President of the Central Bank, was joined by Executive Secretary Rogério Lucca to face questions from CPI Chair Senator Soraya Thronicke (Podemos-MS) and other senators and ministers in attendance.
Taking place on Tuesday, the hearing of the Central Bank executives was deemed critical by the Commission in determining measures to “limit consumers from excessive debt” – the principal remit which sanctioned the CPI of Bets.
The hearing opened with Galípolo and Lucca providing an analysis of the market expansion of the Bets regime following its activation on 1 January 2024.
Lucca noted: “The economic activity of betting received its proper classification, and we used more precise data to verify the R$20 billion value before discovering that the monthly figure has since risen to R$30 billion.”
“Our monthly observation of market activity amounts to R$20 billion through R$30 billion during this year, from January until March.”
Yet with Bets in its nascent stages, the interpretation of metrics used to gauge economic activity continues to divide opinion, as detailed by an opinion from the IBJR, the Brazilian Institute for Responsible Gaming (IBJR) in 2024: “Considering only the total amount transferred to betting platforms, while ignoring player winnings, withdrawals, or account balances, necessarily overestimates actual consumer spending in the betting market.”
According to the institute, the distribution is linked to the Return to Player (RTP) rate, which in mature and regulated markets is over 90%. This means that of the R$20bn (£2.6bn) moved each month, about R$18 billion is returned to players in the form of prize payouts.
Central Bank has no role in regulating betting
During the hearing, Galípolo clarified that supervision and penalties related to the regulation of the sector are the sole responsibility of the Ministry of Finance, including oversight of payment institutions that serve sports betting platforms.
According to the Central Bank President, a change in legislation would be necessary to allow the Bank to issue fines or block the activities of companies that violate the rules.
Galípolo explained: “The Secretariat of Prizes and Betting [SPA, part of the Ministry of Finance] is the one that determines which betting sites are authorised or not. Once informed by the SPA, the Central Bank tells the financial institution: ‘You have companies to monitor with your procedures and, from now on, do not authorise them anymore.’ It’s not the Central Bank that halts a transaction. From there, it is the financial institution itself that interrupts it”
Pix is no consumer protection
The Central Bank President also stated that the institution does not have the technical capacity to prevent beneficiaries of social programs, such as Bolsa Família, from spending on sports betting:
“It is up to the Central Bank to follow the legal command received from the legislature. Once the money is in the account, how could any segregation be done? These are studies being developed by the Secretariat of Prizes and Betting of the Ministry of Finance. The Central Bank will do whatever the legislative mandate determines.”
The President’s verdict will likely cause controversy among political ranks, which have pressured the Secretariat of Prizes and Betting (SPA) to pledge to exclude Bolsa Família and Benefício de Prestação Continuada (BPC) recipients from participating in online betting.
Galípolo also emphasized that it will not be possible to share PIX (instant payment system) data to identify gamblers: “As this is covered by banking secrecy, I am legally prohibited from presenting data or any information processed through the PIX system, whether from the paying or receiving parties.”
