Sports betting PL must pass the Chamber

Scheduled to be voted on this week, the bill that deals with sports betting (PL 3626/2023), the so-called “Bets”, should be approved in the Chamber of Deputies without major difficulties. The expectation is that a text that has already been voted on in the Senate will be maintained, allowing internet betting related to the results of real sporting events, but prohibiting the existence of certain types of online casinos. The proposal had already been approved by the Chamber in September, but, after changes in the Senate, it had to be returned for new evaluation by deputies.

During the vote in the Senate, the opposition defeated the government by removing the section related to casinos. The senators agreed to approve an amendment presented by the leader of the PL in the House, Carlos Portinho (RJ). As a result, online casinos remain a criminal offense.

The proposal is discussed amid the controversy surrounding the Blaze betting site, the target of investigations by the police for not paying bettors the prizes in games such as “Crash”, also known as the “Jogo do Aviãozinho”, and the “Game of Tigrinho”. These games are illegal in Brazil, as are others from Blaze.

According to a report produced by Fantasticfrom the TV Globo, last Sunday (17), the company used several influencers to advertise the platform on their profiles. Names such as Viih Tube, Juju Ferrari, Jon Vlogs and Mel Maia are among the personalities who encourage the use of games. The São Paulo Court blocked approximately R$100 million from the platform and suspected embezzlement.

Still according to the TV Globo, the company does not have headquarters or legal representatives in Brazil. Despite this, documents indicate that part of the money would go to three Brazilians who act as hidden owners of the company.

Defense lawyers for Blaze said that the blocking of the website was judicially revoked as it was considered a disproportionate measure.

Even with the scandal, the expectation is that the case will not interfere with the report presented by deputy Adolfo Viana (PSDB-BA). In the opinion of experts, however, the case involving Blaze is the result of a lack of market regulation.

Bill underwent modifications to ban slot machines

The substitute approved by federal deputies in September modified a previous proposal on the subject and left gaps that would make gambling viable and allow the opening of physical places to place bets. Last Tuesday (12), the senators approved the project with modifications, which is why the text returned to the Chamber. The text approved by the senators was the substitute for the rapporteur, senator Angelo Coronel (PSD-BA), presented at the Economic Affairs Committee (CAE).

In the Senate vote, two highlights of the text were accepted. The first amendment, authored by senator Carlos Portinho, excludes the possibility of betting on virtual online gaming events. And the second amendment, presented by Senator Tereza Cristina (PP-MS), prohibits the installation of equipment or other betting devices in physical commercial establishments – the so-called slot machines, which still operate illegally in many establishments.

The rapporteur estimates that the revenue could reach up to R$10 billion. He established that the exploration of the activity will depend on authorization from the Ministry of Finance, which will specify the rules for modalities (virtual and/or physical) for the operator to operate.

The project is of interest to the government, as the amounts collected will help the government meet the fiscal target of zero deficit scheduled for 2024.

The proposal received criticism from entities, especially the National Conference of Brazilian Bishops (CNBB), for bringing “moral, social and, particularly, family harm” and favoring “money laundering and organized crime”.

Influencers have already been arrested for fraud

Last week, a group of influencers from Paraná were arrested for advertising the “Jogo do Tigrinho”. The misleading disclosure made them liable for gambling exploitation, suspicion of gang formation and money laundering. Previously, in September, there was a similar case in Maranhão.

“I’m telling you this platform is incredible. R$1,500.” This is an example of the advertisements broadcast by these influencers.

According to investigations by the Civil Police of Paraná, the criminals were ordinary people who, in a short time, appeared with several imported cars and were traveling internationally. Investigators also discovered that the group profited from promoting the “Tigrinho Game”.

They earned around 5 thousand and 15 thousand for a seven-day campaign. In short, the influencers were in charge of running promotions, raffles and giving tips about the games, attracting new participants.

Lawyer Victor Jorge, member of the Special Committee on Private Security of the Brazilian Bar Association in São Paulo, assesses that the influence of digital content producers was of great importance for the growth of platforms like Blaze.

“In addition to the illegality of gambling, it was also possible to verify possible misleading advertisements by digital influencers,” he said. According to him, it is very common for these gaming platforms to offer digital influencers a “demo account” where they can play without any gain or loss, just to give credibility to the scam. Some platforms provide “fictitious balances”. All of this with the aim of attracting as many players as possible.

He adds: “The actions of platforms and people who disseminate false advertisements may even be subject to legal action by the player who lost money”, said the lawyer.

Scandal causes friction between influencers

The case involving Blaze also caused discord among the influencers involved and other personalities. On social media, influencer Rodrigo Mussi, who gained fame after participating in the Big Brother Brasil program, from TV Globo, was the protagonist of one of the controversies. He published a sentence that was interpreted as an attack on another former Big Brother Brasil, also the digital influencer Viih Tube, whose name was mentioned in the program’s report Fantastic about Blaze.

“Does it pay back the money it has already earned? Hmm,” wrote Mussi. Upon seeing the publication, former Big Brother Brasil Eliezer do Carmo, husband of Viih Tube, criticized his former colleague for his position. “Rodrigo Mussi wants to know if he returns the money he has already won. But why don’t you talk about yourself, Rodrigo? Why you do not speak? Did you return the money you earned? Because until recently your stories were classified as games, every day, every week there was a different one, it wasn’t just one brand, no, there were several, every day a different one. Whoever paid the most was there in your stories, did you return the money?”, said Eliezer.

Model Juju Ferrari also criticized Viih Tube, claiming that the influencer could have left whenever she wanted. Initially, Viih claimed that he had bureaucratic difficulties in breaking the contract with Blaze.

Difference between casino, betting house and poker

But what is the difference between betting and casino? A casino, whether virtual or physical, is considered an establishment that has slot machines, card games, roulette and other games. In other words, activities that depend exclusively on luck so that a person can win the prize and that have no betting limit. This is the case with the Blazer.

The exception to this modality is the lottery promoted by Caixa Econômica Federal, responsible for Mega Sena, Loteria Federal and other bets.

As for betting houses, or “bets”, the situation is different as there is a fixed quota. In the case of sports betting, the technique of the teams you are betting on is an element that differentiates a bet that depends purely on luck.

The bettor does not bet against the house, but against other bettors, as the market is formed based on the number of people betting on the same sporting event. Furthermore, the bettor can choose a specific event to bet on, using data about that sport to build his strategy. The same definition applies to poker, which also requires technique to be played.

“While Law No. 13,756/2018 began the process of legalizing sports betting, online gambling, such as casinos, continues to be governed by Decree-Law No. 9,215/1946, which prohibits them. This difference lies in the fact that bettors have control over the measurement of the results of their bets, and online casinos do not, as there is no control over the algorithms that decide the results, generating potential fraud”, explains lawyer Matheus Puppe, member of the Group Compliance Working Committee of the National Justice Council.

For the lawyer, the “Bets” regulation process will bring greater clarity to the regulation of the sector.

“The ‘Bets’ law is an essential step towards greater clarity and regulation in the field of online gaming. We live at a pivotal time for players, influencers and policymakers, as we navigate this evolving legal landscape, a field that moves billions of reais and can significantly impact government revenues and stimulate a new economic sector”, said Puppe.

The report sent the Avelar Advogados office, responsible for defending Blaze in criminal proceedings, questions about the accusations against the website and was informed that “the Public Prosecutor’s Office has already requested the shelving of the police investigation in relation to the alleged crimes of embezzlement and crime against the economic order, considering that the crimes are not configured”.

The office also claimed that “the judge revoked the decision to block the website as he considered the measure disproportionate and unreasonable.”

Check the note in full

Blaze is an online betting platform, licensed in Curaçao, where betting is permitted and properly regulated.

The Company has a very high level of professionalism and transparency with its customers, which has made it one of the main companies in the sector.

Regarding the criminal investigation, the Public Prosecutor’s Office has already asked for the police investigation to be closed in relation to the alleged crimes of embezzlement and crimes against the economic order, considering that the crimes are not configured.

Furthermore, the Judge revoked the decision to block the website as he considered the measure disproportionate and unreasonable.

It is important to consider that the Federal Police have a consolidated understanding that: “the practice of betting on the internet, through websites based abroad, does not constitute a criminal offense under the current legislation, even if the bettors are Brazilian, not giving rise to the opening of any investigative procedure within the scope of the Federal Police.”

The creation of multiple police investigations on issues already faced and archived on other occasions is not justified.

The regulation of betting houses has been debated by the Executive Branch and the Legislative Branch, having recently been approved by the Federal Senate.

In this way, the insistence on carrying out criminal investigations without a concrete basis brings unnecessary institutional strain with the other Powers that are regulating the topic.