Brazilian senate launches CPI to check online betting influence

Neha Soni November 14, 2024

SiGMA news

The Senate has announced the launch of a Parliamentary Commission of Inquiry (CPI) of bets in a move that aims to combat the alleged irregularities of online betting businesses operating in .

The newly formed commission, spearheaded by Senator Soraya Thronicke, will be investigating the financial consequences of online betting on family budgets, probable links to organised crime in the business and influencers promoting gambling platforms. The move aims to enhance consumer protection and market integrity measures.

Senator Dr. Hiran will be serving as committee chair while Senator Alessandro Vieira will be taking the position of vice-chairman. The CPI will have 130 days to complete its inquiries, which will include incidents with suspicions of money laundering and other potential misconducts.

Thronicke said the commission has secured the cooperation of the federal police. The police will be assisting with the commission’s investigations, one of the main concerns of which is the “exorbitant amounts” from the betting platforms that are vulnerable to criminal influence.

Regulatory escalation

The commission would also target identifying gaps in the current regulation and enforcement mechanism. The CPI, according to Thronicke, is also sceptical that some gambling operators use software that does not meet the regulatory criteria and are rigged to guarantee exorbitant profit margins for the companies. In addition, the commission will also be looking into safe gambling practices.

Another ongoing CPI focuses on potential game manipulation with sports, especially soccer. This comes after there were recent instances where players allegedly received money to skew match results. The commission aims to investigate players, directors and betting companies. The Senate initially launched the game manipulation CPI in April. The term was later extended until February 2025.

These efforts come amid Brazil’s ongoing goal to ensure the smooth launch of its regulated betting sector on 1 January 2025. The country’s Supreme Federal Court launched a public hearing on 11 October about the consequences of online betting. The session had over 30 experts, including representatives from public bodies and organisations,