New Report Displays Conflicting Data on Gambling’s Effect on Brazilian Consumers
A report from Santander’s corporate and investment bank arm has claimed the legalization of online gambling in Brazil has had a harmful impact on consumers’ mental and financial health.
The report claims the impact on the financial health of gambling legalization has “mostly been negative,” highlighting a Brazil Chamber of Foreign Trade (CNC) study that claims 1.3 million people in Brazil went into default because of online gambling over H1 of this year.
However, Santander also said it wasn’t sure whether the increase in online gambling had negatively impacted household financial health, saying it was “hard to conclude.”
Additionally, the bank expects the launch of the legal betting market on Jan. 1, 2025 to partially offset the damaging impact it says gambling has had on Brazil’s consumers, with the government projected to collect between BRL5 billion ($863.4 million) to BRL10 billion in 2025.
Mincetur Sets Out Nov. 15 Deadline to Formalize Operations
The Peru gambling regulator Mincetur has clarified a deadline of Nov. 15 for operators to formalize their operations in the newly regulating market.
Companies must be authorized, approved and registered prior to that deadline, with operators that miss it facing inspections and administrative sanctions from that date onwards.
The deadline comes amid controversy over a proposed 1 percent consumption tax in Peru, which could come in later this year.
Gonzalo Perez, CEO of Peruvian operator Apuesta Total, previously told iGB: “The proposed 1 percent consumption tax discussed in congress was crazy because it’s a pretty high percentage. So, we are trying to reach them and argue with them about how harmful that tax could be if it’s not correctly applied.”
Brazil’s Ministry of Finance Partners with Match-Fixing Monitoring Organizations
Brazil’s Ministry of Finance has announced partnerships with four industry monitoring and integrity organizations, aiming to help the fight against match-fixing.
The Secretariat of Prizes and Bets, which sits within the Ministry of Finance, signed Technical Cooperation Agreements (ACTs) with Sportradar and Genius Sports, as well as the International Betting Integrity Association (IBIA) and the Sports Integrity Global Alliance (Siga and Siga Latin America).
The partnerships, which will last for five years, will look to strengthen the safety network surrounding manipulation of Brazilian sports, with the organizations educating the SPA on how to monitor the legal sports betting market.
The agreements come after a Parliamentary Inquiry Commission (CPI) was set up in Brazil following claims of match-fixing from American businessman and owner of top-flight soccer club Botafogo earlier this year.
Ex-Finance Ministry Advisor in Brazil Warns Against Banning Online Betting
Former Special Secretary for the Brazil Ministry of Finance José Francisco Manssur has warned a ban on online betting in the country would be a backwards step.
On Oct. 21, Senator Sérgio Petecão proposed Bill 4,031/2024 to the senate with the aim of banning online betting in Brazil over fears it will lead to rises in fiscal debt and addiction.
Manssur, who played a key role in helping Brazil pass online betting legislation before leaving his role at the Ministry of Finance, believes banning betting would actually have a harmful effect, praising the regulations set out by the SPA.
“Proper regulation reduces cases of addiction, creates jobs and increases the country’s revenue,” Manssur said in an op-ed for Poder 360.
Paquetá’s CPI Testimony Pushed Back to December
Lucas Paquetá, soccer player for English Premier League club West Ham and the Brazil national team, has had his appearance in front of the match-fixing CPI postponed to December.
Paquetá had been invited to discuss his alleged involvement in a betting scheme, requested by CPI President Jorge Kajuru and Vice-President Eduardo Girão.
Paquetá had been scheduled to testify on Sep. 30, but his defense’s request for a postponement was granted, with his lawyers arguing the player is focused on preparing his defense against the English Football Association (FA).
Paquetá’s uncle, Bruno Tolentino, remained silent in his CPI appearance thanks to habeas corpus, though Senator Romário intends to request the lifting of Tolentino’s banking, telephone and telematic secrecy in order to investigate a suspicious bank transaction.
