Brazil Forms Parliamentary Inquiry Commission on Betting Ahead of Market Launch

A parliamentary inquiry commission (CPI) on betting was established in Brazil yesterday, November 12th, in anticipation of the legal market launch scheduled for January 1, 2025. This allows senators to address their concerns regarding the betting industry.

The proposal for the betting CPI originated on October 8th, initiated by Senator Soraya Thronicke. Her aim is to investigate the “growing influence of online virtual gambling games on Brazilian families’ financial spending.”

Senator Thronicke’s request garnered the necessary 27 signatures. However, the commission’s formation faced delays due to uncertainty surrounding its membership.

Senator Thronicke has been appointed as the CPI’s lead, with Senator Dr. Hiran Gonçalves serving as the commission’s chair and Senator Alessandro Vieira as the vice chair.

The CPI will consist of 11 members and seven substitutes. It has an initial timeframe of 130 days to conduct its work. The next meeting is scheduled for next Tuesday, November 19th, although Senator Thronicke has not yet revealed the identities of the first witnesses.

Dr. Gonçalves concluded the meeting by stating: “I am certain that the members of this commission are fully mobilised and qualified to present excellent work to the country.”

CPI Aims to Address Concerns Over Brazil Betting

The establishment of the betting CPI comes amidst growing concerns about the social and economic impacts of gambling in Brazil, with the legal market launch just seven weeks away.

A two-day hearing at the Federal Supreme Court (STF) concluded yesterday. This hearing was initiated by the National Confederation of Trade in Goods, Services and Tourism (CNC), Brazil’s third-largest trade union, through an ADI (Ação Direta de Inconstitucionalidade) seeking to overturn the country’s betting laws 14,790/2023 and 13,756/2018.

Several prominent experts from Brazil’s betting industry were invited to speak, including the Secretariat of Prizes and Bets (SPA) leader Regis Dudena and members of the National Association of Games and Lotteries (ANJL).

Both Dudena and ANJL legal director Pietro Cardia Lorenzoni defended regulation and cautioned that overturning betting laws could fuel the black market in Brazil.

The ruling from the hearing is anticipated in the first half of 2025.

Pressure Mounts on Brazil’s Gambling Sector

As the legal market draws nearer, last-minute efforts are being made to potentially halt its launch.

In October, Senator Sérgio Petecão introduced Bill 4,031/2024 to the senate, proposing a complete ban on online betting in Brazil.

Negative publicity has been fueled, in part, by a controversial study from the retail sector regarding consumer habits and the potential cannibalization of its profits by gambling.

Former finance ministry special secretary José Francisco Manssur warned that banning online betting would represent a step backward for Brazil.