Zona de Azar Brazil – Brazil: 17 Betting Companies Possibly Failing to Comply with Regulations

Brazil.- November 5, 2024 www.zonadeazar.com The Ministry of Justice and Public Security (MJSP), through the National Consumer Secretariat (Senacon), notified 17 sports betting and online gaming companies last Friday, the 1st. The secretariat has given the companies ten days to provide detailed information on bonuses, advertising, and restrictions on access for minors.

The notification is supported by Articles 5 and 170 of the Constitution and the Consumer Defense Code. Wadih Damous, the National Consumer Secretary, stated that the goal is to ensure companies operate within legal boundaries: “The increase in promotional practices and bonuses can make consumers vulnerable and expose minors to a risky environment.”

In the notification, Senacon requests that companies clarify their bonus policies, marketing, and communication practices, especially those aimed at preventing gambling addiction and protecting minors. According to Vitor Hugo do Amaral, Director of the Consumer Defense Department, consumers have the right to make informed decisions, understanding the real chances of winning and the inherent risks of betting. “Any practice that compromises this right will be subject to inspection,” he stated.

It is worth noting that on April 16, 2024, the Ministry of Finance’s Secretariat for Prizes and Betting (SPA/MF) issued SPA/MF Order No. 615, prohibiting sports betting companies from offering any type of bonus to clients.

Senacon notified the companies for the following reasons:

• Offer of Advances and Bonuses: Companies must explain their practice of offering advances, bonuses, or incentives to encourage betting, which is prohibited by law.
• Advertising Policy for Minors: Senacon requested that companies explain how they prevent their betting ads from reaching minors.
• Responsible Gaming Policy: Companies must clarify how they communicate responsible gaming practices to consumers, including information on risks of addiction and disorder, and whether they provide information on prevention and treatment.
• Transparency Regarding Betting System Operation: Companies were questioned about the clarity of information provided to consumers to ensure informed decision-making.
• Consumer Service Channels: Senacon requested information on the existence of service and complaint channels to ensure proper handling of consumer complaints.
• Mechanisms to Restrict Access for Minors and Vulnerable Individuals: Companies were asked to report on mechanisms that prevent betting by children, adolescents, and consumers in heightened vulnerability, such as the elderly and those with gambling dependencies.
• Prevention of Over-Indebtedness: Senacon inquired about the existence of mechanisms to alert or prevent consumer over-indebtedness.

The 17 notified companies are as follows: Bet365, Betano, KTO, Parimatch, 1xBet, Sportingbet, Betnacional, Superbet, Rivalo, EstrelaBet, Sportsbet.io, BetSul, Betfair, PixBet, Pix365, Esportes da Sorte, and Vai de Bet.

Edited by: @_fonta www.zonadeazar.com