LATIN AMERICA IN FOCUS

NSX Group survives underage betting suit, political delays hampering progress in Chile, Codere pulls back in Colombia and more.

LATIN AMERICA IN FOCUS

Betnacional Owner Avoids Suspension Amid Underage Betting Lawsuit

A judge has ruled that NSX Group, the operator behind the Betnacional brand, can continue its activities in Brazil, rejecting a request to suspend its operations amid a court battle over underage betting.

The interlocutory decision comes after two organizations filed a lawsuit against NSX Group and its Betnacional, Mr Jack Bet and Pagbet brands, calling for the suspension of the company’s activities and collective moral damages of BRL500 million ($88.3 million).

NSX Group had been accused of failing to sufficiently protect children and adolescents from betting, but despite the Public Prosecutor’s Office initially granting the injunction to suspend NSX’s activities, a court has now decided against suspending the company’s operations.

Udo Seckelmann, head of gambling & crypto at Brazilian law firm Bichara e Motta Advogados, told iGB the case is still ongoing, with the potential for further evidence to be given that ultimately changes the ruling on NSX’s activities.

 

Political Delays Stalling Chile’s Online Gambling Plans

Asociación Chilena de Casinos y Juego (ACCJ) President Cecilia Valdés has voiced her frustration over the slow progress of online gambling regulation in Chile.

In December 2023, Chile seemed to make significant progress toward legalizing online gambling when the Chamber of Deputies approved an iGaming regulation bill.

However, the progress has been slow since then, with the bill currently stuck in the Senate, and Valdés blames a lack of political will for the delay.

Valdés told iGB: “More concerning is the urgency status was recently removed, which makes us think that both the executive branch [for failing to push it forward] and the legislative branch [for allowing it to stall in the Senate for over a year] lack the necessary commitment.”

 

Bolsa Família Betting Ban Sparks Civil Rights Debate

Brazilian lawyer Luiz Felipe Maia believes the incoming ban on gambling with money from Brazil’s Bolsa Família program could become a civil rights issue.

In April, Secretariat of Prizes and Bets chief Regis Dudena confirmed there would be a ban on betting with social welfare proceeds, with the measure set to undergo legal assessment before coming into force in the form of an ordinance.

Felipe Maia warns the prohibition could be deemed to infringe upon the rights of Brazilians, telling iGB: “At the end of the day it becomes a civil rights issue, because what we’re saying is ‘OK, if I am in a situation where I need welfare, I cannot decide where I’m going to spend my money, so I have limited freedom.’”

“Either you give them stamps and say, ‘OK, these stamps are for food, and you can only use those for food’, or you’re giving them money and you’re allowing them to decide what they’re going to do with that money.”

 

Codere Online Pulling Back in Colombia Amid New VAT

Codere Online is pulling back in Colombia after a new 19 percent value-added tax (VAT) was introduced for online gambling operators in the country.

In February, Colombia brought in the emergency tax, which will last until the end of December, with the government stating it needs the additional funds to cover the expenses of responding to ongoing civil disturbances in the Catatumbo region of the country.

Many operators have reported impacts to their activities in Colombia, and in the earnings call following the announcement of Codere Online’s Q1 results, CEO Aviv Sher said the company has had to stop its efforts in the country.

“We started to see good results in Colombia,” Sher explained. “But I think everybody knows what happened in Colombia in the past few months with the VAT regime that they introduced.”

 

Brazil Senator Calls for Betting Ban to Protect Country’s Football Sector

Senator Eduardo Girão of Brazil has strongly criticized the damaging impact of betting on the nation’s football scene and is urging for the repeal of existing betting laws.

During a Senate Plenary session last week, Girão reiterated his desire for a ban on betting to be introduced, claiming the football industry’s dependence on gambling sponsorships was harming the sport.

“We need to stop this humanitarian tragedy that is betting,” Girão explained. “Only a few win: tycoons. And those who lose are millions. For me, it has to end. I have a bill to end it, to ban sports betting again.

“The damage has already been done, the signs are there. And there are still people with zero responsibility towards the Brazilian population, with zero social commitment, who are thinking of putting casinos and bingo halls to a vote in this House in the coming weeks.”

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