Brazilian industry representatives warn betting ban could expand illegal market
Regulation2 min read
Industry representatives warned at a Supreme Federal Court hearing in Brazil that the betting ban could shift activity to unlicensed operators. The Ministry of Justice said it had requested the removal of 36,905 websites between 25 September and 29 October; representatives also said betting volumes fell 32% in the latest three-month data compared with a year earlier.
A debate has intensified in Brazil over whether the betting ban protects consumers or steers gambling toward unregulated operators. The matter featured at a Supreme Federal Court (STF) public hearing on Tuesday. At that hearing, 34 entities discussed Provisional Measure 1.394, the measure that banned betting in Brazil.
Between 25 September and 29 October, the Ministry of Justice requested removal of 36,905 websites. Industry representatives contended that the ban could hinder enforcement, since licensed operators would have a smaller monitoring role.
According to Pietro Cardia of the National Association of Games and Lotteries (ANJL), betting volumes fell by 32% in the last three months of Ministry of Finance data, compared with a year earlier. Before the ban, more than 60% of the market was in the regulated segment, he said. Lawyer Udo Seckelmann, who represents the football club Botafogo, cited 188 websites authorised by the Secretariat of Prizes and Bets (SPA). Seckelmann also cited more than 66,000 illegal sites blocked over 20 months of regulation.
Industry representatives said licensed operators helped build ways to monitor suspicious betting and backed efforts against match-fixing and money laundering. A São Paulo FC representative said regulated operators had started to watch for, report and take down suspicious bets. The representative added that clubs had assumed duties to teach athletes and staff about match-fixing and to set up reporting channels. Representatives said illegal operators would not have to meet the same obligations covering protection of consumers, reporting, or working with sports bodies.
The government defended the ban, arguing that the regulated system had left social and health risks of betting insufficiently addressed. Justice Minister Wellington César Lima e Silva called betting platforms an “architecture of dependency”. Health Minister Alexandre Padilha showed indicators linked to problematic gambling and suicide. Attorney General Jorge Messias said the earlier regulatory model failed to adequately protect families.
Ana Clara Marques de Barros Santos, speaking for Aigaming, highlighted SPA figures showing that 70% of bettors spent up to BRL50 per month. Average betting sessions lasted 12 minutes, according to the SPA figures that Ana Clara Marques de Barros Santos highlighted.