Brazil’s MJSP Seeks Player Protection Plans from Operators
The Brazilian Ministry of Justice and Public Security (MJSP) has asked 17 betting companies for details of their strategies to protect vulnerable consumers.
Brazil pinned on the world map. Brazil’s Ministry of Justice asks betting operators for player protection plans
LISTEN TO THIS ARTICLE:The request, issued through the National Consumer Secretariat (Senacon), calls for companies to outline their approaches to advertising, casino bonuses, and restrictions preventing minors from betting within Brazil.
In addition, Senacon has asked the operators to clarify their procedures for monitoring and blocking underage users and those at high risk of incurring debt. The list of operators asked includes international firms such as Betano and Flutter Entertainment’s Betfair, along with local brands like Betnacional and EstrelaBet. The companies are required to submit their responses by November 11.
Wadih Damous, the National Secretary for Consumer Affairs, explained that the MJSP and Senacon are looking to ensure operators follow the law as an increase in promotions can be damaging to vulnerable bettors and minors.
Growing Concerns Ahead of Brazil’s Betting Market Launch
The request from the MJSP comes amid increasing concerns about the betting industry’s potential effects on at-risk consumers, especially younger audiences and those facing financial hardship. A recent survey by Hibou, a market research organization, estimated that 10% of Brazilians have encountered financial problems linked to gambling.
Adding to this, a study by the Brazilian Society of Retail and Consumption (SBVC) revealed concerning shifts in spending patterns among Brazilians who allocate a portion of their monthly income to gambling.
According to the SBVC report, 23% of individuals had reduced clothing purchases, while 11% had cut healthcare and medication expenses. In response, the National Association of Games and Lotteries issued an open letter pointing to Brazilian Institute of Geography and Statistics (IBGE) data, which showed a 1.3% increase in household spending in Q2 compared to the previous quarter and a 4.9% rise year-over-year.
More Regulation News
Legislation Aims to Protect Vulnerable Bettors
As the LATAM gambling market is expanding and legal betting in Brazil is preparing to launch on January 1, 2025, several proposed bills aim to protect at-risk consumers. Senator Alessandro Vieira’s PL 3,718/2024 proposes limiting betting access for the elderly and those listed in debt or credit protection registries. Meanwhile, Congressman Elmar Nascimento’s PL 3,745/2024 suggests a betting expenditure cap, restricting it to 15% of monthly income.
Senator Sérgio Petecão recently introduced Bill 4,031/2024, which seeks to ban online betting altogether, though this proposal has been met with significant opposition. José Francisco Manssur, former Special Secretary for the Brazil Ministry of Finance, warned against an outright ban, arguing that effective regulation is the best route to ensure bettor protection.
RELATED TOPICS: Regulation
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