Online gambling companies, known in Brazil as bets, are preparing to expand into physical betting outlets in states such as Rio de Janeiro and Paraná. The finding comes from a report by the Secretariat of Prizes and Bets (SPA), the Finance Ministry office that supervises and regulates the market. The g1 news portal reported the document on Friday (Sept. 25), the same day President Luiz Inácio Lula da Silva announced in São Paulo a provisional measure banning online bets.
The SPA had scheduled the discussion of fixed-odds betting through physical digital terminals for the second quarter of this year in its regulatory agenda. The topic went through a public consultation, and the contributions were published on the agency's website. g1 said it asked the SPA whether anything had been decided and is still awaiting an answer.
Lula renewed his pledge to shut down the market this week, in remarks reported by g1.
"My concern is that part of our youth today is tied to algorithms. If we do not fight this fight, the algorithms will win. I have no problem saying it. I will have the immense pleasure of ending the bets," the president said.
Physical terminals and the consumer agency's warning
One contribution to the public consultation argues that sports betting operates in physical and online formats in several countries and that Brazilian states can also run it in that format. The document says that while federal authorization covers only fixed-odds sports betting, "several states, in the exercise of their power to run lottery services, have been building their own models for physical terminals, including for other modalities, such as digital instant lotteries, with different levels of technical and operational requirements."
The consumer protection foundation Procon-SP warned about terminals installed at open events and at freely accessible businesses, such as supermarkets, gas stations, pharmacies, bars and snack shops. In the agency's assessment, this could "allow and facilitate improper access by minors, and undermine the effectiveness of identity checks on users." Procon-SP recommended that the operation be restricted to "closed or controlled environments," with physical barriers, entry controls and an express ban on access by minors.
Broadcasters fear layoffs in sports
Television broadcasters that carry sports coverage are also worried. According to the Outro Canal column of Folha's F5 website, the networks fear a considerable drop in advertising revenue if Lula tightens the rules or bans the betting companies, as he has announced, and they fear layoffs in sports. This week the companies told clubs in the Brasileirão, Brazil's top football league, that sponsorship deals would end immediately.
A provisional measure, Brazil's emergency presidential decree, takes effect on publication but must be approved by Congress within 120 days or it lapses. The announcement came nine days before the first round of the national elections, according to the newspaper O Globo. The SPA has yet to answer whether rules for the physical terminals will be issued.