The National Secretary for Sports Betting and Economic Development of Sport, from the Ministry of Sport, Giovanni Rocco, participated this Tuesday (11) in a public hearing at the Consumer Protection Committee of the Chamber of Representatives.
The meeting, requested by Congressman Daniel Almeida (PCdoB-BA), addressed measures to guarantee legal security and protection of consumer rights in the fixed-odds betting market.
Thus, Rocco highlighted that the sector’s regulation is only 11 months old and has reverted to the legal origin of the activity, legalized in December 2018. Therefore, he linked the delay in the regulation foreseen by law to the effects on consumers and the competitive environment.
How does the government intend to structure its response to illegal betting websites?
Giovanni Rocco said: “This is yet another market that was authorized to operate in December 2018, by a law approved by this House and the Federal Senate, which would authorize the operation of fixed-odds betting in Brazil, with a provision in the original law that the government should regulate it within a period of four years, which was initially two years extended by another two, and this was not done.”
Thus, he pointed out that the operation of lotteries in Brazil — numerical prediction, instant, or fixed odds — is a public service concession. Furthermore, he presented what occurred during the regulatory gap and the impacts on consumers exposed to clandestine offers.
Therefore, he explained: The Ministry of Treasury, the body responsible for regulation, has already blocked more than 23,000 illegal gambling websites in Brazil. I brought up this history to show the vulnerability that has affected the Brazilian consumer.”
Regulation of the betting market
The secretary pointed out: “We had the task and mission of regulating this market, which is considered the second largest betting market in the world. Today, we are behind the United States if we add up the flow of legal and illegal bets.”
This regulation led to the creation of numerous illegal websites, resulting in uncontrolled gambling among Brazilians and financial dependence of football teams on sponsorships.
Therefore, Rocco requested that Parliament support the Executive in institutional structuring and operational capacity to address irregular housing. Finally, he advocated for legislative adjustments that guarantee market adjustments focused on consumer protection and recognition of economic activity.
Daniel Almeida, in justifying the hearing, highlighted the expansion of the sector in the country and the need for regulatory responses. However, he emphasized that consumer protection should guide the regulatory design.
The congressman emphasized: “demanding from the Legislative Branch a regulation that ensures not only legal certainty, but above all the preservation of consumer rights.”
Betting on numbers
According to the Central Bank (BC), Brazilians spent between R$ 20 billion and R$ 30 billion per month on online betting between January and August 2024. On the other hand, the study reports that most bettors are between 20 and 30 years old, and the average monthly amount increases with age.
Who participated in the hearing on the regulation of betting?
Representatives from federal agencies, sectorial entities, and consumer advocacy groups participated, both in person and online. The panel included:
- Marina Giocondo Cardoso Pita — Director of the Department for the Promotion of Freedom of Expression at the Secretariat of Digital Policies, of the Secretariat of Social Communication of the Presidency of the Republic (online).
- Osny da Silva Filho — Director of the Department of Consumer Protection and Defense of the National Consumer Secretariat.
- Andiara Maria Braga Maranhão — General Coordinator of Responsible Gaming Monitoring at the Secretariat of Prizes and Betting, Ministry of Treasury (online).
- Bernardo Freire — lawyer for the National Association of Games and Lotteries (online).
- Rodrigo Marinho — Executive director of the Free Market Institute.
- Marcelo Pagotti João — Director of the Inspection Department of the Consumer Protection and Defense Program of São Paulo (Procon/SP), of the Secretariat of Justice and Citizenship of the Government of the State of São Paulo (online).
- Walter Moura — President of the Consumer Protection Committee of the Brazilian Bar Association (OAB).
In addition to the names mentioned, members of the board were also present.
