The Federal Supreme Court (STF) heard on Monday (11) more than 30 experts and representatives from public agencies and institutions on the first day of the public hearing discussing the impacts of sports betting and online gaming in Brazil. This article summarizes the presentations of all participants who spoke.
At the end of the day's work, Minister Luiz Fux thanked the presence of national and foreign exhibitors who presented their arguments. Fux emphasized the importance of the democratic-participatory process of the public hearings convened by the STF, as the ministers do not master all the aspects addressed. The public hearing continues on Tuesday (12), from 10 am to 12 pm.
The case reached the Supreme Court in the Direct Action of Unconstitutionality (ADI) 7721, in which the National Confederation of Commerce of Goods, Services and Tourism (CNC) requests that the Bets Law (Law 14.790/2023) be declared unconstitutional by the STF.
When calling the hearing, Fux explained that the goal is to clarify issues related to mental health, the neurological impacts of betting, the economic effects of the practice on commerce and its effects on the domestic economy, as well as the social consequences of this new regulatory framework.
See below the summary of the presentations:
Morning
Felipe De Sá Tavares, representative of the National Confederation of Commerce of Goods, Services and Tourism (CNC)
The chief economist of the CNC, author of the action, defended the need for regulation of online betting. For him, the decision is sensitive and, therefore, should be based on evidence. Among the studies presented by the CNC, he highlighted data that demonstrate the uncontrolled growth of betting in the country, with a negative impact on the consumption pattern of the Brazilian family.
Paulinho da Força, federal deputy and president of the Solidarity party
The parliamentarian argued that bets do not generate jobs or taxes in Brazil, besides sending abroad the money that the country collects in this sector. He asked the STF to block what he called the "dragon", which, if not stopped, "will continue eating the money of the poorer Brazilian people".
Leonardo Albernaz, representative of the Federal Court of Accounts (TCU)
The secretary of Internal Control of the TCU reported that the agency is monitoring the universe of online betting, focusing on five themes: public health, indebtedness of bettors, risks of money laundering and other crimes, data security, and tax issues about betting houses. He also said that the results will be sent to the Executive Power, the National Congress, and the STF.
Cecilia Vieira de Melo Sá Leitão, representative of the Attorney General's Office (PGR)
The federal prosecutor explained that the presence of the Federal Public Ministry at the public hearing has the main objective of listening to the statements of all participants, to serve as technical support in the preparation of the opinion that the PGR will present to the STF about the case.
Regis Anderson Dudena, representative of the Ministry of Finance
The secretary of Prizes and Betting of the department believes that the Bets Law regulated important gaps, by improving legal security, the protection of bettors, and the popular economy. Dudena explained that the secretariat has the competence to regulate the theme.
Adriano Massuda and Sônia Barros, representatives of the Ministry of Health
The secretary of Specialized Health Care advocated for more rigorous regulation, highlighting the severity of the damages to mental health. Meanwhile, the director of the Department of Mental Health of the department showed data on the increase in betting, the amounts, and the treatments in health units of people with gambling disorder. The survey shows that the expenses of the poorest families are 32% higher compared to the richest.
Clara Carolina de Sá, representative of the Ministry of Social Development and Fight against Hunger
The representative of the department said that, although it is still not possible to clearly estimate the real impacts of bets in the country, different studies point to negative implications, such as family indebtedness and consequences in state revenue. She highlighted that easy access to betting platforms and the encouragement of consumption can lead to compulsive behavior, worryingly affecting the most vulnerable social classes.
Gustavo Binenbojm, representative of the Brazilian Association of Radio and Television Broadcasters (Abert)
The representative of the class association defended the Law 14.790/2023 to regulate the sector, considering it aligned with international standards and rigorous regarding the duties of betting houses and the advertising of these services.
Afternoon
Ana Míria Carvalho, representative of the Ministry of Racial Equality
The deputy secretary of the department showed concern about the disproportionate impact of bets on the black and brown population. She emphasized the importance of careful regulation of the topic and the conduct of more research focused on social markers, such as race and gender.
Giovanni Rocco Neto, representative of the Ministry of Sports
The national secretary of Sports Betting and Economic Development argued that actions to block illegal sites should be quick and efficient. According to him, the ministry is greatly concerned with the risk to the image of sports in the country. "The national passion of the Brazilian, football, must be protected, with a special focus on defending children and adolescents," he said.
Luciana Leal, representative of the Attorney General's Office of the National Treasury (PGFN)
According to the deputy administrative attorney general, the law proposes commands to curb damages to the economy, personal finances, and the health of Brazilians. However, its protective effect can only be assessed with the functioning of the regulated market, starting in January 2025.
Rafael Bezerra Ximenes de Vasconcelos, representative of the Council for Control of Financial Activities (Coaf)
The director of Supervision of the institution pointed out that the betting sector involves differentiated risks of using the activity for money laundering and related crimes. In his view, despite the current law meeting international standards, rigor in monitoring transactions and reporting indications of crimes to Coaf is necessary.
Leonardo Cardoso de Magalhães, representative of the Public Defender's Office of the Union (DPU)
The federal public defender-general said that the law promoted progress, but he believes it is necessary to adopt additional measures to mitigate the social consequences for the most vulnerable families. For him, the property responsibility of the debtor should prevail when the livelihood of a child or the dignity of a worker is at stake.
Daniel Corrêa Homem de Carvalho, representative of the Federal Council of the Order of Lawyers of Brazil (CFOAB)
The president of the Special Commission on Sports Gaming Law, Lotteries, and Entertainment Law, responded to all the ills attributed to the unregulated betting system, being appropriately addressed by the Ministry of Finance. "If we deliver compulsive consumers and players to the voracity of illegal sites, there will be no control. Issues related to public health, consumer finances, and the integrity of sports will become even more serious," he said.
Hazenclever Lopes Cançado, representative of the State Lottery of Rio de Janeiro (Loterj)
The president of Loterj stated that the example of his state shows that it is possible to regulate sports betting and guarantee the rights provided in the Constitution, such as human dignity, the right to health, the protection of children and adolescents, and the safeguarding of the interests of the vulnerable population. According to Lopes, the regulated bets in Rio de Janeiro have been operating for 18 months without incidents, collecting taxes and guaranteeing employment, wealth, and income.
Pablo Wosniacki and Rafael Halila Neves, representatives of the State Lottery of Paraná (Lottopar),
The operational director's advisor, Wosniacki, stated that the lottery market in his state is regulated and safe. For Neves, technical director of the state autarchy, regulation is an opportunity to educate society, and the lack of clear rules would prevent the supervision of the sector.
Juliana Nakata, representative of the National Council for Self-Regulation in Advertising (Conar)
The executive vice-president of Conar said that the institution established guidelines so that the advertising of betting does not bring the idea of quick enrichment, addresses the concept of responsible gaming, and is not directed at children.
Magno José Santos de Sousa, representative of the Brazilian Institute of Legal Gaming (IJL)
The president of the institution stated that there is an invasion of illegal sites that, operating from abroad, take advantage of the lack of regulation to exploit betting in a way he described as "reckless and criminal".
Pietro Cardia Lorenzoni, representative of the National Association of Games and Lotteries (ANJL)
For Lorenzoni, the regulation of the matter will provide answers to concerns about pathological gambling and the prohibition of betting by children and adolescents. He also said that the regulation of the sector will allow the collection of more than R$ 4 billion in licenses, in addition to taxes.
Andreia Schroder, representative of the Women's Group of Brazil
She highlighted that it is necessary to take into account the profile of the bettors when regulating the matter. In her understanding, the impact on the family budget should be considered, as 85% of bettors are from classes C, D, and E, and many have already suffered losses.
Frei David Santos, representative of the NGO Education and Citizenship of Afrodescendants and Needy (Educafro)
He said he is against the regulation of bets, but, if it occurs, he advocated the use of biometrics and facial recognition to prevent children and adolescents from gambling. In his view, it is necessary to direct 50% of the amounts collected to prizes, and the games should be managed by the State, so that the net income is allocated to social programs.
Celso Cintra Mori, representative of the Brazilian Institute of Responsible Gaming (IBJR)
He defended the validity of the Bets Law, which, according to him, allowed the Ministry of Finance to issue various regulations to maintain the legality of the gaming sector, identify pathological players, and allow their treatment, in addition to curbing money laundering.
Hermano Tavares, representative of the Brazilian Association of Psychiatry (ABP) and the Brazilian Association for the Study of Alcohol and Other Drugs (Abead)
The USP professor and member of the psychiatry commission of the ABP stated that the control mechanisms provided in the Bets Law are insufficient to prevent pathological gambling. According to him, the gaming industry feeds the excesses in betting and the illusion of control, and, for this reason, the advertising of the sector should be banned in the media, being restricted to points of sale.
Márcio Borges Malta, representative of the International Gaming Association (Aigaming)
Malta reported that Brazil has between 28 and 30 million bettors and that most studies related to ludopathy (compulsion for gambling) come from physical games. He defended responsible gaming, with user identification, setting spending limits, network blocking of pathological players, and risk alerts.
Luís Vicente Magni De Chiara, representative of the Brazilian Federation of Banks (Febraban)
The legal director of the federation stated that initial analyses of online betting indicate impacts on credit and an increase in default. According to him, most bettors are young people between 20 and 30 years old who spend about R$ 100 per month on digital bets. Moreover, the main audience comes from classes C, D, and E, groups with less financial education and greater difficulty accessing credit.
Brigitte Sand, foreign expert
The consultant and former director of the Danish Authority for Gambling and Betting presented the experience in regulating gambling in her country. She stated that the legislation, unanimously approved by Parliament in 2010, aimed to protect bettors and ensure that the service is provided "in a fair, responsible, and transparent manner". According to her, nine out of ten Danish bettors operate in the licit market, which shows that the new regulation was well received and that players prefer to bet responsibly and in a regulated environment.
Carlos Hernández Rivera, foreign expert
The former director-general of the gambling regulatory body in Spain was in charge of the entity when the market was regulated in his country. In his view, the regulation of gambling, both in-person and online, is the best way to protect society and the economy from the adverse effects of the activity. According to him, Spanish legislation seeks to prevent possible pathological behaviors, especially in vulnerable groups, in addition to prohibiting activities such as money laundering and terrorism.
João Francisco de Aguiar Coelho, representative of the Alana Institute
The representative explained that the entity defends the rights of children and adolescents, and this audience is the most impacted by the proliferation of online betting. As they are developing individuals, children and adolescents are more susceptible to the damages caused by betting, as they do not have the brain conditions to respond to game stimuli and addictions like adults.
Andrea Magalhães, from the Economic Regulation Laboratory of the Law School of the State University of Rio de Janeiro (UERJ)
The researcher emphasized that the control of these activities may be unfeasible if regulation is postponed. According to her, online betting generates social, economic, and mental damages already proven, and the evaluation of regulatory strategies needs to be required and constantly updated.
Isadora Valadares Assunção and Pedro Henrique Figueiredo, from the Laboratory of Law of New Technologies and Disruptive Business Models of USP (NPD TechLab)
The researcher said that online betting platforms use obscure digital strategies that, instead of informing, manipulate and confuse consumers, leading them to make decisions they would not make if they had all the information. Meanwhile, Figueiredo stated that the platforms hide information about the functioning of the games, with instructions in other tabs, information overload on the screens, and explanatory videos in other languages.
Source: GMB/ STF
