SBC News Voice of the Sports Betting Industry
Nearly a third of Brazil’s population could be prevented from spending any money in the country’s newly launched gambling market, according to SBC Noticias – Brasil.
Concerns around social responsibility and financial vulnerability prompted Fux, a member of the Supreme Court of Brazil, to draft protective measures against people claiming certain state benefits from gambling.
This decision, made last November, was supported by the rest of the Supreme Court. Five months down the line, the Secretariat of Prizes and Bets (SPA) of the Ministry of Finance is following through with regulatory measures.
“This is still in the final stages of alignment, mainly legal, but also technical, to see if it complies with the Supreme [Federal Court] decision,” said Regis Dudena, Secretary of Prizes and Bets at the Ministry of Finance, and ead of the SPA, in a recent interview with Brazilian media.
Nearly 60 million excluded from ‘Bets’
The measure specifically targets those who receive the Bolsa Família and Continuous Benefit Payment (BPC) benefits, two of the most widely claimed types of state welfare in Brazil.
The former provides financial support to families below the poverty line and is claimed by over 54 million people, while BPC is provided to elderly people aged 65 and over, and is claimed by over 5.8 million people.
According to the Dudena, recipients of these benefits will be prohibited from betting regardless of the origin of funds. This means that around 30% of Brazil’s 212 million population will be unable to place a bet in the marketplace, which launched on 1 January under the ‘Bets’ regulatory framework.
“Given that we need to comply – it is a Supreme Court decision that demands it – so we are taking this precaution,” Dudena added.
The move – which as a Supreme Court ruling betting operators cannot dispute – raises an interesting question around social responsibility and player protection in markets like Brazil, where, as mentioned above, many consumers rely on welfare assistance.
Four months into the new market’s existence, Brazil’s new licensed betting operators have made their ambition to clear out the black market, which offers little to no player protection, very clear. Legislators have also been taking aim at influencers promoting illegal sites.
However, as with more established regulated markets like the UK, it is clear that the new licence holders still have social responsibility concerns to deal with, particularly regarding financially vulnerable people – and lawmakers will expect licensees to prove their worth.
