Brazil’s Senate delays gambling inquiries as concerns mount over economic, social impacts

Brazil’s Senate has announced a delay in the launch of two highly anticipated inquiries, the Commission of Inquiry (CPI) of Bets and the CPI of Integrity, which aim to investigate the nation’s gambling industry and its effects on citizens, family finances, and sports integrity.

Both inquiries are slated to examine the framework governing Brazil’s fixed-odds and online betting markets under the national Bets regime, with plans to launch in 2025.

The CPI of Bets, proposed by Senator Soraya Thronicke, will examine the financial implications of online gambling for Brazilian families and communities.

As rapporteur, Thronicke will oversee an inquiry budget of R$110,000 and a 130-day timeframe to evaluate critical concerns, such as household debt, personal financial risks, crime, and potential money laundering tied to the Bets market. However, finalizing the team involved in the inquiry has postponed the investigation’s official start.

Thronicke’s inquiry takes place amid growing alarm over the industry’s economic influence on Brazil’s low-income population. Data provided by the Central Bank of Brazil revealed that recipients of Bolsa Família, the government’s social assistance program, spent approximately BRL 3 billion ($500 million) on gambling transactions processed through the PIX payment system.

President Inácio Lula da Silva expressed concern over this trend, warning that the Bets market would be suspended if it negatively impacts Bolsa Família and other social welfare programs designed to support Brazil’s most vulnerable citizens.

Meanwhile, the Senate has extended the timeline for the CPI of Integrity, which focuses on the integrity of Brazilian sports amid rising concerns about match-fixing and betting-related fraud. Chaired by Senator Jorge Kajuru with Senator Romário serving as rapporteur, the inquiry has been investigating allegations of betting manipulation involving players, team managers, and betting firms within Brazilian football.

Originally set to conclude this year, the inquiry will now continue until February 2025 to allow a more in-depth investigation.

The extension of the CPI of Integrity follows a series of criminal cases in 2022 and 2023, which revealed widespread betting fraud affecting both professional and amateur sports across Brazil. Kajuru and Romário are leading the Senate’s efforts to uphold transparency and security in sports, focusing specifically on football, which has been particularly vulnerable to fraudulent betting practices.