Government evaluates legality of measures to contain betting – 09/28/2024 – Market

The government of President Luiz Inácio Lula da Silva (PT) evaluates the legality of measures to reverse the explosion of betting in the country. The PT member has been expressing indignation and concern about the indebtedness due to bets of Bolsa Família beneficiaries. Furthermore, members of the government say that care must also be taken not to stigmatize those who receive the monthly aid.

In addition to the Ministries of Finance and Social Development, the AGU (Attorney General of the Union) is also studying the possibilities, analyzing the legal issues on the subject. The topic will be discussed with the president next Wednesday (2), when he returns from Mexico.

Government members say that there is a regulatory vacuum left by Jair Bolsonaro (PL), and are studying the constitutionality of the government determining what citizens could or could not spend their money on.

An alternative on the table would be to carry out control through CadÚnico, a registry of beneficiaries, to which only the government has access. The idea would be to evaluate who is spending on bets, and then suspend the CPF or change the ownership benefit.

This possibility could expose those who receive Bolsa Família less, but it is being studied just like the others.

There is a wing of the government that talks about broader regulation and not just focused on beneficiaries. The idea would be to try to reduce the harmful effects of gambling addiction on everyone, not just the poorest.

As Minister Wellington Dias (Social Development) told Sheetyour proposal for the topic would be to ban the use of the Bolsa Família card in betting.

“The regulation of bets, coordinated by the Ministry of Finance and Civil House, must contain a rule with a zero limit for the social benefits card for games and control based on the CPF of those who play”, said the minister responsible for Bolsa Família.

President Lula (PT) expressed indignation to assistants in New York this week, when faced with the news of the impact of bets on the accounts of the poorest and most indebted population. He has already demanded that his government urgently issue measures to reverse this scenario.

The Chief Executive became aware of the situation through the technical note made by the Central Bank, which indicated expenditure of R$3 billion on bets by Bolsa Família beneficiaries only via Pix and in the month of August.

Lula expressed concern to interlocutors about the impact on people in vulnerable situations, including adolescents and young people.

Almost a third (30%) of Brazilians aged 16 to 24 said they had already bet, according to a Datafolha survey published in January this year. The percentage among young people is double the average of 15% for the entire country.

Bets have been released in the country since 2018, after a law approved by the Michel Temer (MDB) government. Jair Bolsonaro’s (PL) government should have regulated the market, but did not do so during its four years in office — during this period, betting had enormous growth, without rules and supervision.

The minister stated that, in the first half of last year, at the beginning of Luiz Inácio Lula da Silva’s government, the Treasury sent a provisional measure to the National Congress in order to regulate electronic betting. “To bring order to the chaos that has taken place in the country with this true pandemic,” said Haddad.

“Betting was legalized at the end of the government [de Michel] Fear. And the law provided that the Executive would have two years to regulate, extendable for another two years. In other words, the law provided that, during Bolsonaro’s government, the matter would have to be regulated. Bolsonaro didn’t do that. The Bolsonaro government simply sat on top of the problem, as if it didn’t exist,” said Haddad, adding that people need to know “the whole truth about betting.”

The minister stated that, in the first half of last year, at the beginning of Luiz Inácio Lula da Silva’s government, the Treasury sent a provisional measure to the National Congress in order to regulate electronic betting. “To bring order to the chaos that has taken place in the country with this true pandemic,” said Haddad.

Market regulation has been led by the Ministry of Finance, where a secretariat was created to take care of prizes and bets. The full effects of legalization will come into force in January 2025, and the government is counting on large revenues.

But, starting next month, only companies that have registered to be regularized with the Treasury will be considered legal. Other sites will have to be taken down.