The measures announced by the Ministry of Finance to mitigate addiction and debt in online gambling are welcome, two of the concerns that have arisen since the modality was approved by Congress and sanctioned by President Luiz Inácio Lula da Silva at the end of last year. Legalization was undoubtedly positive. There would be no point in maintaining a hypocritical ban if bets are everywhere, even on the shirts of major football teams. Existing for years, they did not contribute to the country, as they did not collect taxes. Although positive, regularization is not free from challenges. The biggest of these is the risk of addiction and financial ruin.
Retailers, puzzled by stagnant or declining sales in a time of a strong labor market, hired a consultancy to investigate the possible causes. One conclusion was that in the C and D social classes, money spent on betting is being diverted from portions of the budget previously allocated to consumption or savings. In 2023, the 'bets" generated between R$ 60 billion (US$10.6bn) and R$ 100 billion (US$17.7bn). This year, estimates suggest the figure could reach R$ 130 billion (US$23bn). The disconnect between rising household income and declining or stagnant sales in sectors like fashion, furniture, and personal and household goods is not only bad for businesses. It may be an indicator of dependency.
The Ministry of Finance's ordinances published last week aim to tackle the problem. Betting companies will be required to monitor user behavior and may suspend platform use if necessary. To do this, they will need to have analytical tools and methodologies to assess bettors' profiles and the risks of disorders. Upon registration, they will also need to inform users of the risks, not only of addiction but also of financial loss.
The new rules regulate advertising and strategies for attracting customers. A significant point is the prohibition of advertising that portrays betting as "socially attractive" or contains statements from celebrities or influencers suggesting that gambling "contributes to personal, social success or financial improvement." Companies must use clear language, respecting the protection of minors under 18 and vulnerable groups. According to the regulations, the 'bets' will be legally responsible for the advertising of their affiliates and will be subject to supervision by the Secretariat of Prizes and Betting (SPA), which is linked to the Ministry of Finance.
It is essential for the state to ensure that gaming does not get out of control, by regulating advertising, protecting children and adolescents, and monitoring harms such as addiction and indebtedness. Additionally, control and oversight bodies must remain vigilant to prevent crimes like money laundering, fraud, and tax evasion in a sector where large sums of money circulate.
Source: O Globo
