Brazil Proposes New Gambling Caps to Protect Vulnerable Groups

Can Brazil’s gambling regulations safeguard vulnerable groups before the market fully opens in 2025? Two new bills propose strict spending caps to protect the elderly and those receiving social benefits. With President Lula expected to address these measures soon, how will this shape Brazil’s gambling landscape? Read on to learn more about these groundbreaking proposals and their potential impact on the country’s gaming industry.

Brazil’s New Bills Seek Gambling Caps to Protect Vulnerable Groups Before 2025 Betting Market Launch

As Brazil prepares to launch its regulated online betting market on January 1, 2025, the government is taking proactive steps to curb potential gambling harms. Two new bills—PL 3,718/2024 and PL 3,745/2024—aim to impose spending caps on gambling activities for vulnerable segments of the population, including the elderly and individuals receiving government financial benefits.

Introduced late last week by Senator Alessandro Vieira and Congressman Elmar Nascimento, these bills seek to address growing concerns around the social and fiscal impacts of gambling on Brazilian society. The urgency of these measures reflects a national conversation about responsible gambling and the protection of high-risk individuals in a market poised for rapid growth.

The Key Provisions of PL 3,718/2024

Senator Alessandro Vieira’s PL 3,718/2024 targets several vulnerable groups, including the elderly, those registered in credit protection registries, and low-income families benefiting from the government’s CadÚnico social welfare program. The bill proposes enforcing spending caps based on a player’s losses. Furthermore, additional caps may be tied to an individual’s declared income, potentially leading to a complete ban on betting transactions for those at high risk.

The proposed regulation extends beyond mere financial caps. It reflects a commitment to responsible gambling, ensuring that individuals most susceptible to addiction do not fall prey to the perils of excessive betting.

Nascimento’s PL 3,745/2024 Takes a Stricter Approach

Congressman Elmar Nascimento’s PL 3,745/2024 takes an even firmer stance by limiting betting expenditures to 15% of an individual’s monthly income. The bill also seeks to ban betting between 9 pm and 6 am for those deemed to be at “high risk of addiction and pathological gambling disorders.” This time-based restriction adds an extra layer of protection, targeting the periods when gambling is most likely to become impulsive and uncontrolled.

President Lula’s Expected Announcements

Amid these legislative developments, President Luiz Inácio Lula da Silva is expected to make a formal announcement outlining a series of measures to address concerns about gambling’s impact on vulnerable groups. Reports suggest that he may introduce additional regulations on advertising and restrict betting among recipients of Bolsa Família, a government social welfare program.

Moreover, rumors indicate that President Lula could bring forward the ban on credit card usage for gambling, initially set for the market’s legal launch in January 2025. Interestingly, both the National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR) have already advised their members to expedite the credit card ban, claiming widespread compliance among their affiliates.

Mounting Pressure on Brazil’s Gambling Sector

The introduction of these bills comes amid rising concerns from government officials and other sectors, particularly retail. Recent studies have pointed to betting-related problems in Brazil, with one from the Brazilian Society of Retail and Consumption (SBVC) suggesting that bettors are gambling away money meant for essentials like clothing and healthcare. Although the study’s small sample size sparked controversy, it nevertheless ignited widespread media coverage and concern among public officials.

Another significant issue is illegal gambling. Recent data from Yield Sec indicated that onshore operators might represent only 9% of Brazil’s total online gambling market, raising the stakes for implementing stricter regulations.

Upcoming Licensing and Compliance Deadline

Adding to the regulatory urgency, the Brazilian government has set a new deadline for operators seeking licenses. Only those already active in the country and who have applied for a license by October 1 can continue operating. Those failing to meet this requirement must give players a 10-day window to withdraw funds before ceasing operations. This crackdown aims to cleanse the market of non-compliant companies ahead of the full-scale market launch in 2025.

Eduardo Carvalhaes and Karen Coutinho, lawyers at the Brazilian firm Lefosse, believe that this deadline will ease concerns among licensed operators and expedite the removal of illegal gambling entities. “The market expectation is that this measure will bring forward the removal of non-compliant companies from January 2025 to October 1,” they told Gamingo.

The new bills, PL 3,718/2024 and PL 3,745/2024, represent Brazil’s decisive efforts to enforce responsible gambling measures as the nation prepares for its licensed betting market launch in 2025. By proposing spending caps and restricting betting hours, these legislative efforts aim to safeguard vulnerable groups from the risks of addiction and financial harm. With President Lula expected to outline additional regulatory measures, Brazil’s gambling landscape is set for transformative changes that prioritize player protection and market integrity. The evolving scenario underscores the country’s commitment to a sustainable and responsible gambling market, signaling that Brazil is poised to become a benchmark for regulated gambling worldwide.