The Brazilian Senate is set to launch an inquiry into the effects of online gambling on family budgets.
The inquiry, which will be completed within 130 days, will also examine possible connections between online gambling and criminal organisations involved in money laundering.
It comes less than two months ahead of the launch of Brazil’s regulated sports betting and iGaming market on 1 January 2025, which has been marred by a money laundering scandal involving a prominent sports betting operator.
Senator Soraya Thronicke (pictured) from the centre-right Podemos Party said: “There is no point in closing our eyes to this problem. It is a fact. It is one of the main reasons for attacks on life and separations.”
The inquiry will be led by a parliamentary commission, consisting of 11 full and seven rotating members, with a spending limit of R$110,000 (€18,100).
The role of online influencers in promoting criminal money laundering in online gaming will also be probed by the inquiry.
Brazilian police arrested influencer Deolane Bezerra in September as part of the government’s Operation Integration money laundering crackdown.
Senator Thronicke also said she suspects some online gambling operators have rigged their software to boost profits.
The inquiry was supported by Senator Dr. Hiran Gonçalves, who argued online gambling betting transactions often operated beyond the purview of Brazil’s Central Bank.
This, he argued, was facilitated by operators being based in tax havens and carrying out their activities using cryptocurrencies.
Gonçalves added: “I think that, to protect Brazilians and for this House to provide a response to society, [the inquiry] is fundamental.”
Brazil government supports online gambling inquiry
The government’s leader in the chamber, Senator Randolfe Rodrigues, praised Senator Thronicke’s work in launching the inquiry.
Rodrigues characterised online gambling as a social and public health problem, as well as an economic issue.
The inquiry, he said, would be a response to Brazilian society from the Senate, while he also argued congress should consider tabling a debate on gambling advertising.
Esportes da Sorte, the controversial betting operator at the heart of a growing money laundering scandal, this week received a gaming licence from the Rio de Janeiro state lottery.