Brazil’s new bill calls for online betting ban over mental health

Neha Soni October 28, 2024

SiGMA news

Brazil has proposed a new bill aimed at banning online sports betting across the country over growing mental health concerns and financial risks associated with it.

The bill, introduced by Senator Sérgio Petecão, has been officially named Bill 4.031/2024. It was submitted to the Brazilian Senate and seeks to halt the online betting market months before it is set to be fully regulated and legalised. Senator Petecão’s primary concern behind proposing the bill is that online betting can take a toll on the bettors’ mental health and is a cause of financial risks. His argument is that online betting platforms are accessible anytime of the day, which increases the risk for addiction and compulsive gambling behaviours. Petecão said, “The platforms of online betting are available 24 hours a day, creating a false sense of easy winnings and leading many people to addiction. This compromises their own lives, their relationships, and their finances.”

Brazilians spiralling into debt

The proposal comes amid growing evidence that online betting has caused many Brazilians to go into significant financial debt. A study, despite having a small sample size of 1,337 consumers, received significant media coverage for suggesting that some bettors use money meant for food and medicine to gamble. This has raised concern and debate about the potential dangers of expanding the online betting market.

The new bill aims to amend the law signed earlier this year, enabling online betting in Brazil. It aims to amend the bill within 60 days to prohibit virtual gambling. However, betting at physical venues would still be allowed. The argument is that anonymity online betting offers to players and its round-the-clock availability makes it more dangerous than in-person betting at physical venues.

The propsoal comes as the government is preparing to launch its licenced online betting market in January of 2025. With preparations in order to award licences, various lawmakers and public figures have expressed concern about the potential impact of online betting on vulnerable populations. Key issues remain the impact of online betting on vulnerable groups including the elderly and those receiving social benefits. The industry is awaiting response from President Luiz Inácio Lula da Silva, who is expected to speak publicly on these issues and how the government expects to tackle them ahead of the betting market’s launch.