Brazil's Supreme Court Schedules Public Hearing on Sports Betting and Online Gaming for November 2024

Minister Luiz Fux of Brazil’s Supreme Federal Court (STF) has announced that a public hearing on sports betting and online gaming will take place on November 11, 2024. The hearing aims to "clarify" the technical aspects related to mental health and the neurological effects of betting on human behavior, according to Minister Fux.

This session will open discussions on several important topics, including the economic effects of sports betting on trade, its impact on the domestic economy, and the social consequences of gambling, such as whether social benefits are being used for betting purposes.

The announcement comes on the heels of a statement from Brazil’s Social Development Ministry, which proposed measures to prevent people from using their social benefit payments for online gambling. This initiative follows a report by the Central Bank revealing that in August, five million individuals who receive social benefits spent over R$3 billion (approximately $540 million) through online gambling platforms using the Pix payment system. The average expenditure per person was R$100 (around $18).

The amount spent on online gambling in August represented about 20% of the monthly budget for the Bolsa Familia program, which supports 21 million families with an average monthly payment of R$685 (around $126).

In a statement to the press, Brazil’s Social Development Minister, Wellington Dias, addressed the issue, saying:

“We are working on alternatives. One of them is a zero limit on the use of social benefits, like Bolsa Familia, for gambling or betting. And we are considering a control mechanism based on tax ID numbers to implement the necessary measures.”

Brazil’s Central Bank chief, Roberto Campos Neto, also weighed in, noting:

“This is happening, and it’s happening at a fast pace, which could compromise the income of these lower-income households at some point.”

In response to concerns over gambling, both the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) have advised their members to bring forward a planned credit card ban. This ban, which was initially set to take effect on January 1, 2025, is being introduced early by members of both groups, who represent online gambling operators in Brazil.

Despite hopes that the ban will reduce the negative effects of problem gambling in the country, industry operators have pointed out that credit card deposits only make up 3% of transactions among ANJL members and just 0.5% among IBJR members.

By fLEXI tEAM