The Chamber of Deputies of Brazil has initiated a ‘general examination’ of the social and economic harms related to online gambling and its growing engagement with the general public.
Hearings are being led by the Economic Development Committee of the Chamber of Deputies, which has been tasked with gathering evidence and the opinions of Brazilian state departments on the development of the Bets regime – the legislative framework that has governed online gambling in Brazil as of 1 January 2025.
The Committee will take in evidence provided by the federal government, consumer protection agencies, representatives of the regulated betting industry, and critics and opponents of the Bets regime.
Chairing hearings is Republicanos Minister Jadyel Alencar, who noted that the committee was deeply aware of the sensitivities related to the governance of online gambling. The topic has drawn mixed opinions across Brazil’s political spectrum.
The latest proceedings underline the increasingly uncertain future of the Bets regime. Just over a year after the market’s launch, Congress and the Senate have received multiple legislative proposals seeking to either repeal the framework entirely or introduce significant restrictions on licensed operators – a doctrine that is pursued by President Luiz Inácio Lula da Silva.
During the first hearing, representatives of the Ministry of Health detailed that demand for public mental health services linked to gambling-related harms had increased by 137% over the past five years.
Marcelo Kimati Dias, Director of the Department of Mental Health, Alcohol and Other Drugs, told lawmakers that the government had responded to this increase in demand for problem gambling services by introducing new support mechanisms through the Meu SUS Digital platform.
It includes self-assessment tools and referral pathways for those showing signs of gambling dependency.
The Ministry of Finance further revealed that 31 million CPF registrations are currently linked to authorised betting platforms, while Brazilian bettors were estimated to have lost approximately R$37bn (€.6.5bn) during 2025.
Treasury stands by Bets
Despite growing political opposition, Treasury officials defended the regulatory framework.
Leandro Lucchesi, General Coordinator of Regulation at the Secretariat of Prizes and Betting (SPA), argued that regulation had provided authorities with greater visibility over betting activity and the tools needed to intervene where necessary.
Lucchesi highlighted the introduction of centralised self-exclusion measures, user-defined spending limits and new player risk assessments, while also confirming that regulators were reviewing potentially manipulative product features such as “near misses” and “losses disguised as wins”.
However, consumer protection representatives maintained that stronger safeguards remain necessary.
Johnatan Faraj, Director General of Procon-DF, described bettors as “hyper-vulnerable consumers” and criticised marketing campaigns that promote unrealistic expectations of easy profits.
Faraj argued that operators should be required to disclose player loss rates more transparently and questioned business practices that restrict customers who consistently generate winnings.
Industry representatives rejected suggestions that the regulated sector was the principal source of consumer harms.
As pointed out by Ana Bárbara Costa Teixeira, Director of Government Relations at ABRAJOGO, “most betting activity remains recreational and that enforcement efforts should remain focused on unlicensed operators”.
Teixeira has advised authorities not to return to years of an online gambling “shadow economy”.
She also pointed to the removal of more than 48,000 illegal websites and the blocking of 600 accounts linked to money laundering investigations, arguing that the regulated market was providing authorities with the oversight tools necessary to combat criminal activity.
At the conclusion of the hearing, lawmakers signalled that further scrutiny of the market was inevitable. The Committee announced that it would seek additional information from the Ministry of Finance (MEF), SPA and the Central Bank relating to tax revenues, consumer expenditure and the pending protections of the Bets regime.
Federal deputy Vander Loubet struck a more measured tone on the future of betting in Brazil.
“In reality, it is difficult to end gambling,” he told the committee. “But we must create mechanisms to protect a portion of the population that is vulnerable and provide guidance. That is one of the responsibilities of this Chamber and this Committee, and it reflects the spirit of this public hearing.”
Time to bargain
While calls to ban online gambling altogether continue to gain support among some political blocs in Brazil, policymakers increasingly appear focused on determining whether the Bets regime can be strengthened sufficiently to address concerns over addiction, consumer protection and financial harms.
As reported recently by SBC Noticias Brasil, the governance of the Bets Law has become a bargaining chip as political blocs look to attract public support ahead of the country’s general election on 2 October.
As it stands, the future of one of the world’s newest regulated betting markets remains increasingly contested as industry observers await to see who will stand up as a friend to a much-maligned Bets Law.