Zona de Azar Brazil – Brazil: Proposes Limits for Online Betting by Vulnerable Groups

Brazil – October 1, 2024 www.zonadeazar.com The debate on the social impact of online betting, known as “bets,” has gained a new chapter. Senator Alessandro Vieira (MDB-SE) introduced a bill to limit—or even prohibit—bets made by the elderly, individuals registered in active debt or credit protection databases, and those listed in the Federal Government’s Single Registry for Social Programs (CadÚnico).

The bill (PL 3.718/2024) includes this limitation in Law 14.790, of 2023, also known as the Bets Law. Alessandro Vieira argues that the measure is necessary to protect vulnerable groups, who are among those most affected by this type of gambling.

A survey by the Central Bank released this week shows that, in the past month alone, Bolsa Família beneficiaries spent BRL 3 billion on bets through the pix system. The study was conducted at the request of Senator Omar Aziz (PSD-AM).

According to the Central Bank, “these results are consistent with other surveys showing that low-income families are the most negatively impacted by sports betting. It is reasonable to assume that the commercial appeal of getting rich through betting is more attractive to those in financial vulnerability.”

Illusion and Debt

Alessandro Vieira highlights that many people have “the illusion that gambling is a form of investment,” which leads them to underestimate the risks involved, lured by the “promise of quick but uncertain gains.” He reiterates that “it is essential to make it clear that betting is not an investment.”

This type of gambling, the senator warns, “has led a growing number of people to develop compulsive behaviors, with devastating consequences for their financial and social lives. Loss of control over gambling, constant pursuit of rewards, and denial of consequences are common traits of gambling addiction, which can lead to excessive debt, the destruction of relationships, and mental health issues.”

The Bill

According to Alessandro Vieira’s bill, the Bets Law would limit online betting by:

• the elderly;
• those registered in active debt or credit protection databases;
• those listed in the Federal Government’s Single Registry for Social Programs (CadÚnico).

The proposal also presents the following options for implementing this limitation (the decision would be left to the Executive Branch):

• a cap on losses, either in absolute terms or as a percentage of the amount transferred to the betting platform;
• a cap on monthly transfers;
• a cap on the monthly transferred amount as a percentage of declared income;
• a total ban on transactions.

Vinícius Gonçalves, under the supervision of Patrícia Oliveira. Senate Agency (Reproduction authorized with citation of Senate Agency). Source: Senate Agency

Edited by: @_fonta www.zonadeazar.com