Brazil has introduced a new bill aimed at banning online sports betting nationwide, due to growing concerns about the psychological health issues and associated financial risks it brings.
The bill, proposed by Senator Sérgio Petecão, is officially named Bill 4.031/2024. It has been submitted to the Brazilian Senate, aiming to halt the market several months before comprehensive regulation and legalization of the online betting market.
Senator Petecão's main concern is that online betting can harm gamblers' mental health and lead to financial risks. He points out that online betting platforms are open 24/7, which increases the risk of addiction and compulsive gambling behaviors.
Petecão stated, "Online betting platforms are open 24 hours a day, giving the illusion that winning money is easy, leading many to addiction. This jeopardizes their own lives, relationships, and financial situations."
Brazilians Deep in Debt
The proposal comes amid increasing evidence that online betting has led many Brazilians into significant debt.
A study, although small with only 1,337 consumers, received widespread media coverage for showing that some gamblers used money intended for food and medicine to gamble, sparking concerns and debates about the potential dangers of expanding the online betting market.
The new bill aims to amend a law signed earlier this year that allowed online betting in Brazil. The bill seeks to modify this law within 60 days to ban virtual gambling.
However, gambling in physical locations will still be allowed. The reason is that online betting offers anonymity and is available around the clock, making it more dangerous than face-to-face gambling in physical locations.
The proposal is made as the government prepares to launch its licensed online betting market in January 2025. During the preparation for issuing licenses, many legislators and public figures have expressed concerns about the potential impact of online betting on vulnerable groups. The key issue remains the impact of online betting on vulnerable groups, including the elderly and those receiving social benefits.
The industry is awaiting a response from President Luiz Inácio Lula da Silva, who is expected to publicly address these issues and how the government plans to address them before launching the betting market.
