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Brazil National Congress to analyse 95 amendments to measure that banned betting

| By Gildo Mazza
Among the proposed amendments to Lula's provisional measure that prohibited betting in Brazil were advertising restrictions and a ban of online casino games.
Brazil betting ban

The deadline for submitting amendments to Provisional Measure 1,394 ended on Tuesday.

A total of 99 proposals to change the provisional measure that banned betting in Brazil were filed.

Five of them were withdrawn by the authors, leaving the number of proposals to be analysed in the National Congress at 95. Several of them maintained sports betting, prohibiting only online casino games. Others propose restrictions on advertising and a ban on the purchase of naming rights for stadiums, competitions, gyms and training centres of clubs.

On 25 September, President Lula issued Provisional Measure 1,394, prohibiting sports betting and online gambling in Brazil. His justification was the high level of household debt and the risks of gambling addiction.

The provisional measure mandated the termination of existing authorisations within 30 days, without any reimbursement to the companies that paid BRL30 million ($6 million) in licence fees. It has 60 days to be discussed and voted on, and from the 45th day onwards, it enters an urgent procedure. The deadline can be extended for another 60 days and blocks the entire congressional agenda until its final vote.

Convergence: the end of online gaming

The ban on online casino games was the major point of convergence among the amendments presented by various parliamentarians. While slightly different in wording, they all follow the same reasoning: to completely prohibit the operation, offering, intermediation and advertising of online casino.

Despite the coincidence of several amendments in this regard, suggestions were also presented to the government’s text proposing the maintenance of the vertical structure, but requiring that casino games and game aggregators be certified.

Another point of agreement is the strengthening of the fight against illegal betting advertising, with measures to expand the blocking of clandestine websites. There is consensus on prohibiting advertising for online games and allowing advertising only for sports betting.

Some proposals suggest allocating more funds to the National Health Fund (FNS) and providing resources to finance gambling addiction treatment programmes within the SUS (Brazilian Public Health System).

Changes to the format of sports betting have also been suggested, including the elimination of bets on isolated events such as cards, corner kicks, and penalties.

The amendments reinforce concerns about oversight and control of the sector, including blocking illegal operators and creating an inter-institutional committee to combat clandestine websites.

Maintaining the current betting format

One of the amendments (64) completely reforms MP 1.394, regulating advertising, sponsorships, measures to prevent illegal betting, design, protection for bettors and obligations for technology providers for operators.

In it, the author, Congressman Maurício Neves, proposes maintaining the current model until the provisional measure is issued. He proposes that initial licences will be valid until the expiration of the authorisations, plus the period during which the activity was suspended. According to the congressman, betting will not disappear with the prohibition, but rather migrate to illegal operators.

Other deputies and senators presented amendments in the same vein, limiting the prohibitions of the provisional measure to illegal operators. In some of their justifications, parliamentarians pointed out that the end of betting by provisional measure violates the acquired right of those who paid for the licences and the principle of legal certainty.

Consumer protection

Concern for gamblers is also addressed in some amendments. In addition to reinforcing the maintenance of unified self-exclusion, proposals suggest creating more warnings about the risks of addiction. Another proposed measure, already implemented in the regulations, is the prohibition of gambling by beneficiaries of social programmes.

Another measure would be to stipulate restricted hours for betting advertising, so that it does not reach children and adolescents, as well as session limits, verification of the bettor’s financial capacity and other actions to protect the consumer.

Empty amendments

Amendments were also presented that are already part of the regulations or that have been implemented throughout this year. Among them is the prohibition of betting by beneficiaries of social programmes, already determined by the Secretariat of Prizes and Bets. There are also amendments that prohibit the use of credit cards for deposits in betting sites, something already implemented.

Some of the amendments are not even part of the scope of the provisional measure and the regulations implemented in Brazil. They deal, for example, with topics such as the free distribution of prizes through raffles.

Conclusion: More convergent proposals

The proposals that appear in multiple amendments, with strong alignment among different authors, are:

1. Total ban on slot games and unauthorised online games

2. Strengthening oversight, with an inter-institutional committee and blocking of websites

3. Prohibition of advertising for banned games

5. Allocation of resources for the treatment of gambling addiction

6. Mechanisms to protect bettors (self-exclusion, alerts)

In general, the suggestions make the provisional measure more flexible. It remains to be seen whether the president and rapporteur will be appointed to the Joint Committee on Provisional Measure 1,394. Twelve senators and thirteen representatives have already been nominated as full members. Among the alternates, six senators and seven representatives have been appointed. The complete committee has 26 senators and 26 representatives.

The list of proposed amendments can be viewed here.

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