Zona de Azar Brazil – Brazil: STF Schedules Public Hearing to Discuss Online Betting

Brazil.- October 02, 2024 www.zonadeazar.com Minister Luiz Fux of the Supreme Federal Court (STF) has scheduled a public hearing for November 11 to discuss issues related to the Brazilian online betting market.

According to Fux, the hearing is necessary to understand the impact of betting companies on players’ mental health and the national economy.

“The hearing of experts, regulatory entities, government agencies, and civil society representatives is not intended to gather legal interpretations of constitutional or legal texts, but rather to clarify numerous technical issues,” Fux said.

CNC Opposes Betting Regulation

The regulation of betting in Brazil is being discussed in the STF through a Direct Action of Unconstitutionality (ADI), filed on Tuesday, the 24th, by the National Confederation of Commerce in Goods, Services, and Tourism (CNC).

The CNC seeks to declare Law No. 14,790/2023, which regulates the sector in the country, unconstitutional, claiming that promoting the practice has negative impacts on lower social classes.

“The ease of access to online gambling and the lack of effective policies to prevent and combat compulsive gambling directly affect the retail sector, as individuals redirect income intended for basic needs to reckless gambling,” said the CNC.

Brazilian Online Betting Market

Data from the Central Bank of Brazil (BCB) indicates that between January and August of this year, Brazilians were spending approximately R$ 20 billion per month on sports betting.

The BCB also stated that about 24 million Brazilians made at least one Pix transfer to online betting companies during the same period.

Furthermore, for August, the BCB estimated that five million Bolsa Família beneficiaries were using the funds received from the federal program to spend on betting.

On Friday, the 27th, the Ministry of Social Development and Assistance announced the creation of a working group to analyze this situation.

The group is expected to work in partnership with the Federal Revenue Service and aims to present a proposal by tomorrow, the 2nd, to prevent the use of Bolsa Família resources in the betting sector.

The Ministry of Finance, the Ministry of Health, and the Civil House will also work on the action involving Bolsa Família beneficiaries.

Edited by: @_fonta www.zonadeazar.com