This Thursday (14) the Federal Supreme Court (STF) may debate Minister Luiz Fux‘s decision on online sports betting. Fux proposed “special protection” to block the use of resources from social programs, such as Bolsa Família and Benefício de Prestação Continuada (BPC), in betting.
The trial takes place in a virtual plenary session, with voting between 11am and 11:59pm.
STF debates the regulation of online betting in Brazil
The court will decide whether to ratify or revoke the minister’s decision. Fux approved measures to prevent beneficiaries of social programs from using resources for betting. He also ordered immediate rules to ban betting site advertising aimed at children and teenagers, previously scheduled for January 2025.
Thus, Minister Luiz Fux is the rapporteur of two actions that challenge the regulation of sports betting. The requests, from the CNC and the Solidariedade party, point out unconstitutionalities in the regulations, which could bring financial losses to Brazilian families.
However, a crucial point is the high-risk behavior of bettors, which can compromise your budget. After holding public hearings on the topic, Fux based his decision on data presented by experts.
Thus, he found “evidence of the relevant and deleterious impacts currently underway of betting advertising on the mental health of children and adolescents, and of betting on family budgets”.
Therefore, this assessment led the minister to consider that there were sufficient elements for a decision with immediate effect.
Public hearings
Recently, the STF promoted a series of public hearings with federal agencies and representatives of civil society to debate the reality of betting sites in Brazil. Among the main points discussed are:
- the risk of debt
- gaming addiction, known as ludopathy
- the possibility of money laundering arising from betting
On the first day of hearings, the Minister of Human Rights and Citizenship, Macaé Evaristo, highlighted the vulnerability of the poorest sections of the population in relation to access to online games.
“The ease of access to online games works like a ‘casino in each person’s pocket, leading to harmful results for families”, stated the minister. This concern is also the same as that of President Luiz Inácio Lula da Silva.
Economic impacts and regulatory advances
The Union’s attorney general, Jorge Messias, presented alarming data about the online betting sector. He mentioned that the market moves billions of reais, impacting the economy of several families.
But, on the other hand, Gustavo Binenbojm, representative of the Brazilian Association of Radio and Television Broadcasters (Abert), emphasized that online betting is a reality that cannot be ignored. In other words, for Abert, the new rules already bring advances, such as the prohibition of misleading and abusive advertising.
He highlighted that “Law 14,790 is a pragmatic law that represents the political decision of representatives elected by the Brazilian people.”
Binenbojm added: “no message can induce the bettor to understand the bet as socially attractive. It also cannot be associated with personal success or financial success.” In addition, it will be required that a warning be shown about the risks of financial loss.
Therefore, for him, the legislation approved in 2023 represents a regulatory framework that is “rigorous and aligned with the best international practices in terms of betting advertising”.
