Brazil’s Parliamentary Inquiry Commission on Betting Launched Ahead of Legal Market Debut

On November 12, Brazil formally established a Parliamentary Inquiry Commission (CPI) to examine the country’s betting industry just weeks before the official launch of its legal betting market on January 1, 2025. This commission was created to give senators a platform to address their concerns with the sector.

The proposal for a betting-focused CPI originated on October 8 when Senator Soraya Thronicke requested the investigation, highlighting the "growing influence of online virtual gambling games on [Brazilian families' financial spending]." Thronicke's proposal secured the necessary 27 signatures, but the commission’s formation was delayed due to uncertainty over commission members.

Senator Thronicke was appointed to lead the CPI, with Senator Dr. Hiran Gonçalves as chair and Senator Alessandro Vieira as vice chair. The commission comprises 11 members and seven alternates and has been allocated an initial 130 days to complete its work. The CPI’s next meeting is scheduled for Tuesday, November 19; however, Thronicke has not disclosed the identities of the first witnesses to testify.

Following the commission’s launch, Dr. Gonçalves expressed confidence in the group’s mission, stating, “I am certain that the members of this commission are fully mobilized and qualified to present excellent work to the country.”

The establishment of this CPI arises from mounting concerns over the social and economic impacts of gambling in Brazil, with the legal betting market set to launch in seven weeks. Concurrently, the Federal Supreme Court (STF) recently concluded a two-day hearing initiated by the National Confederation of Trade in Goods, Services, and Tourism (CNC), Brazil’s third-largest trade union. The CNC filed an ADI (Ação Direta de Inconstitucionalidade) seeking to overturn Brazil’s betting laws 14,790/2023 and 13,756/2018.

At the hearing, prominent figures from Brazil’s betting industry defended regulatory measures, including Regis Dudena, leader of the Secretariat of Prizes and Bets (SPA), and Pietro Cardia Lorenzoni, legal director for the National Association of Games and Lotteries (ANJL). Dudena and Lorenzoni argued that overturning the current betting laws would bolster the black market in Brazil. A ruling on the hearing is anticipated in the first half of 2025.

Meanwhile, the gambling sector in Brazil faces increasing scrutiny and pressure. In October, Senator Sérgio Petecão introduced Bill 4,031/2024, aiming to impose a total ban on online betting in the country. A recent controversial retail sector study claimed that gambling is eroding retail profits, further fueling negative press for the industry.

José Francisco Manssur, former special secretary at the finance ministry, also weighed in, warning that prohibiting online betting would mark a "backwards step for Brazil."

By fLEXI tEAM