As the investigation deadline approaches, the Brazilian Congress seems to be hastily concluding its scrutiny of the gambling industry. The Special Commission of Inquiry (CPI) on Gambling, led by the Senate, is facing time pressure, and Senate President Davi Alcolumbre has made it clear: no more extensions will be granted.
This investigation, which began in November 2023, was originally intended to study "the impact of online virtual gambling games on Brazilian family financial expenditures," and has since extended to issues such as illegal betting, social media promotion, and tax retrospection of the market before legalization. The CPI was initially set to end on April 30 this year, but was extended to June 14, which is likely to be the final deadline.
Senator Jorge Kajuru revealed that Alcolumbre is very dissatisfied with the progress of the CPI. According to the media "O Antagonista," Kajuru said the president once angrily slammed the table: "I do not accept any further delays, this is the end. You have not completed the planned work, have not held the necessary hearings, nor have you summoned key witnesses. Sometimes this looks more like a circus show!"
A futile scrutiny?
Although the CPI has touched on several key issues during the investigation and plans to release a final report in the closing phase to address societal concerns about the gambling industry, the credibility of this work has been questioned due to various controversies.
As early as December last year, the well-known Brazilian magazine "Veja" had accused the committee of extortion, causing a huge uproar. In response, CPI rapporteur, Senator Soraya Thronicke, publicly denied these allegations, denouncing the rumors as "smoke bombs" intended to sabotage the investigation.
Controversial episodes also occurred during the CPI. For example, last week, Senator Cleitinho Azevedo, during the hearing attended by social media influencer Virgínia Fonseca, requested a photo with her, sparking media criticism of his inappropriate behavior. Fonseca was summoned because of her promotion of gambling on social platforms, while Thronicke criticized Cleitinho's actions as "not serious" and expressed distrust in Fonseca's responses at the hearing, calling her attitude "frivolous."
The next steps remain unclear
It is still unclear whether the forthcoming final report of the CPI will have a substantial impact on industry governance. Although Brazilian gambling industry reforms have made breakthroughs at the legislative and regulatory levels, whether this seven-month-long congressional investigation will end up being just a "political performance" has become a focus of industry and public attention.
As Alcolumbre closes the last door, gambling companies, policymakers, and the public may only be able to piece together clues about the industry's direction from the "echoes" left by the CPI.
