Betting ban in Brazil raises concerns about illegal market

The betting ban in Brazil has deepened the debate between consumer protection and the growth of the illegal market. At a public hearing held on Tuesday at the Supreme Federal Court (STF), 34 institutions discussed Provisional Measure No. 1,394, which bans betting.

The Ministry of Justice announced that it had requested the removal of 36,905 websites between September 25 and October 29. Industry representatives, however, argued that reducing the role of licensed operators in monitoring could make enforcement more difficult. ANJL representative Pietro Cardia said that betting volume in the latest three-month data fell 32 percent compared with the same period of the previous year, and that before the ban, more than 60 percent of the market operated in the regulated segment.

Speaking on behalf of Botafogo, lawyer Udo Seckelmann said there were 188 sites authorized by SPA and that more than 66,000 illegal sites had been blocked during the 20-month regulatory period. He stressed that licensed operators have set up structures to monitor suspicious betting and to combat match-fixing and money laundering. A São Paulo FC representative said that clubs train athletes and staff and have created reporting channels. Concern was also raised that illegal platforms would not be subject to consumer protection and cooperation obligations.

While defending the ban, the government argued that the regulated framework has not adequately addressed social and health risks. Justice Minister Wellington César Lima e Silva described betting platforms as structures that create dependency. Health Minister Alexandre Padilha shared indicators related to problem gambling and suicide. Solicitor General Jorge Messias argued that the previous regulatory model could not provide families with sufficient protection.

Consumer spending was also a subject of debate. Aigaming representative Ana Clara Marques de Barros Santos said that, according to SPA data, 70 percent of bettors spend no more than 50 reais per month, and that average betting sessions last 12 minutes.