The parliamentary inquiry commission (CPI) on betting was formed in Brazil yesterday (12 November) ahead of the legal market launch on 1 January 2025, so senators can discuss their concerns with the industry.
The betting CPI was initially proposed on 8 October, with Senator Soraya Thronicke requesting its creation to investigate the “growing influence of online virtual gambling games on [Brazilian families’ financial spending]”.
Thronicke’s request received the 27 signatures needed but the group’s formation was delayed amid uncertainty over who would serve on the inquiry.
Thronicke was assigned the CPI’s lead, while Senator Dr Hiran Gonçalves will chair the commission with Senator Alessandro Vieira as vice chair.
The CPI will have 11 members and seven substitutes, with an initial 130 days in which to carry out its work and its next meeting will be next Tuesday (19 November), although Thronicke did not disclose the names of the first witnesses.
Dr Gonçalves ended the meeting by saying: “I am certain that the members of this commission are fully mobilised and qualified to present excellent work to the country.”
CPI aiming to alleviate concerns over Brazil betting
The betting CPI has been established amid concerns over the social and economic impacts of gambling in Brazil, with the legal market launching seven weeks today.
A two-day hearing at the Federal Supreme Court (STF) concluded yesterday. It was initiated by the National Confederation of Trade in Goods, Services and Tourism (CNC), Brazil’s third biggest trade union, filing an ADI (Ação Direta de Inconstitucionalidade) looking to overturn the country’s betting laws 14,790/2023 and 13,756/2018.
A number of high-profile experts from Brazil’s betting industry were invited to speak, including the Secretariat of Prizes and Bets (SPA) leader Regis Dudena and members of the National Association of Games and Lotteries (ANJL).
Dudena and ANJL legal director Pietro Cardia Lorenzoni both defended regulation and warned the overturning of betting laws could drive the black market in Brazil.
The hearing’s ruling is expected in the first half of 2025.
Pressure mounting on Brazil’s gambling sector
With the legal market edging closer, last-minute efforts have been made to halt its launch.
In October, Senator Sérgio Petecão introduced Bill 4,031/2024 to the senate which proposed a total ban on online betting in Brazil.
The bad press has been somewhat driven by a controversial study from the retail sector on consumer habits and how gambling is cannibalising its profits.
Former finance ministry special secretary José Francisco Manssur cautioned banning online betting would be a backwards step for Brazil.