The International Association of Licensed Online Gaming Operators and Intermediaries (AIGAMING) positively assesses the outcome of the public hearing at the Supreme Federal Court (STF) (ADI 7721) that addressed the impact of betting in Brazil. Moreover, it sees relevance in the decision of Minister Luiz Fux regarding the immediate implementation of monitoring and oversight on iGaming advertising and that funds from social benefits should not be used in betting.
In the current scenario, the regulation of the betting market emerges as a key piece for building a fairer and more responsible environment for consumers, as well as providing a more balanced competitive arena for companies operating in the sector.
These were the conclusions of the discussions held this week during the public hearing at the Supreme Federal Court (STF), which was attended by various experts, government authorities, representatives of entities, and organizations from civil society to discuss the impacts and legality of the sector in the country.
With the dispatch from the rapporteur Min. Luiz Fux, issued this Wednesday (13), the arguments against filed by the Attorney General of the Republic, Paulo Gonet, on November 11, were partially granted, and the regulated and legal market is moving towards 2025.
The result was received with optimism by the International Association of Licensed Online Gaming Operators and Intermediaries (AIGAMING) which in its analysis considers that the outcome of the hearing represents advances for the betting market in the country, especially in determining the application of fair rules and specific adjustments in advertising aimed at the sector.
According to Márcio Malta, representative of AIGAMING at the hearing, the commitment of institutions to player protection and combating addiction are important pillars for the future of the sector.
“Brazil has between 28 and 30 million bettors, and the majority of ludopathy cases are associated with physical games, not online. Our priority is to promote a responsible environment, with user identification, spending limits, and blocking of at-risk players,” stated Malta, reinforcing the importance of initiatives that help minimize the risk of dependency and financial problems.
The statement carries significant weight, as it reinforces the importance of ensuring that the sector remains sustainable and safe for all involved.
Among the precautionary guidelines established by the STF are the immediate implementation of monitoring and oversight on betting advertising, aiming to prevent the exposure of minors and protect the dignity of children and adolescents, as foreseen in the SPA/MF Ordinance No. 1.231/2024.
Moreover, according to the dispatch, the Ministry of Finance will be responsible for ensuring that resources from social benefits, such as Bolsa Família and the Continuous Cash Benefit (BPC), are not used in betting, blocking the participation of these beneficiaries in the sector.
In a note, AIGAMING emphasizes that such actions not only reinforce social responsibility in the betting market but also demonstrate the commitment of the STF to an inclusive and balanced approach to the sector.
“AIGAMING salutes Minister Luiz Fux and the Supreme Federal Court for the initiative to promote a plural and respectful public hearing. We also thank the participation of all sector associations, entities, authorities opposed and favorable to the sector for a fair and democratic debate”.
With the new measures, the expectation is that the betting sector will consolidate positively in Brazil, promoting responsible entertainment and fostering an industry that continues to grow.
The International Association of Licensed Online Gaming Operators and Intermediaries (AIGAMING), is an entity dedicated to promoting the collective interests of its members and highlighting the crucial role of lotteries and games in raising funds for social causes.
Source: GMB
The councilors of the Municipal Chamber of São José dos Campos (SP) unanimously approved the project that creates the “Joseense Lottery”. The project was signed by councilors Júnior da Farmácia (MDB) and Marcão da Academia (PSD). The municipal lottery was filed in the Chamber in November 2021, and aims to be able to explore any lottery activities in the city.
Moreover, the project determines that the amount collected from the bets be distributed in three parts: the first, to pay the prizes; the second, for tax payment, operating expenses, and social security; and the third, for social and project actions, with half of the value being applied to health, 30% to social assistance, 10% to sports, and 10% to culture.
In the justification of the project, the councilors claimed that the municipal lottery will have a “direct impact on the life of the citizen of Joseense, with its resources being reverted to specific programs aimed at social welfare”.
The project will still be sent for sanction by the mayor, who may authorize or veto the proposal.
Source: GMB
Caixa Econômica Federal has just released its balance sheet for the first nine months of 2024. The net profit reached R$ 9.4 billion, 21.6% higher than the same period in 2023. The growth did not reflect in the CAIXA Lotteries, which collected 12% more than the amount in 9M23, reaching R$ 18.2 billion. The result shows that the state bank needs to revise its entire business model for the lottery sector to generate better resources.
The CAIXA Lotteries constitute an important source of resources to foster social development in Brazil.
In 9M24, R$ 18.2 billion were collected, 12% more than the amount in the same period of the previous year, with R$ 7.1 billion being allocated to social programs of the Federal Government, in addition to the return to society via income tax payments, a value 10.8% higher than that allocated in 9M23. Regarding net prizes, R$ 6.3 billion were delivered to bettors during the period.
Considering that throughout 2023, the CAIXA Lotteries reached a sales volume of R$ 23.4 billion, the final results of 2024 may be close to last year's values, demonstrating that the state bank needs to review its business model, especially considering the increase in bet prices.
The results now disclosed show that even with the growth of Brazilian income and the greater interest of the population in games and betting, Caixa is not managing to advance with its lottery area.
This year, the bank's Board of Directors approved the restructuring of the lottery area, transferring the administration of all products to CAIXA Lotteries, already eyeing the sports betting and online gaming market, which is expected to start operating in the first half of 2025.
This shows the state's slowness, especially considering that the sports betting and online gaming sector already has authorization to operate provisionally until the beginning of 2025, while Caixa has not yet structured its business model for the vertical.
Moreover, the relaunch of Lotex was approved this year, but the process took time for Caixa to present the new federal scratch card to the market. Only now in November did the state bank introduce the modality to the market.
Source: GMB
