Gambling is a controversial topic for many. On the one hand, they are a good source of income for the state, providing much-needed employment opportunities, and can be an enjoyable pastime for anyone who chooses to have fun with them. But, on the other hand, a portion of the population suffers a lot because of compulsive gambling tendencies. Gambling addiction can cost people their savings, jobs, and families and, in extreme circumstances, even their lives. Although preventive measures are available, there is no global solution to the problem.
Pathological Gambling: A Beginner's Guide
Like the devil, gambling problems are also known in a variety of ways – gambling addiction, pathological gambling, compulsive gambling, ludopathy, etc. The American Psychiatric Association defines pathological gambling as the persistence and recurrence of gambling behavior that leads to losses in various areas of life. In practice, this means that we consider gambling to be pathological when a player develops an insatiable desire to keep playing despite the harmful effects or his own desire to stop.
As in alcoholism, pathological gambling acts in the brain of addicts, causing the release of neurotransmitters that give a sensation of pleasure, such as dopamine, serotonin and norepinephrine, which encourage repetitive behaviors. Thus, despite not consuming physical substances such as alcohol or nicotine, pathological gamblers also suffer from withdrawal symptoms when they try to stop gambling. However, it is worth mentioning that substance abuse – whether alcohol, tobacco or illicit drugs – and pathological gambling often occur simultaneously.
Pathological gambling in less developed markets
According to Matej Novota, while some communities are more prone to gambling problems due to their socioeconomic context, addiction affects all regulated markets in a similar way. As we mentioned earlier, even developed markets suffer from these effects, as evidenced by Australia, which has the largest compulsive gambling community in the world.
However, younger markets with less mature legislation typically have less means to combat the negative impacts of addiction. Novota introduces the issue in more detail: “Mature gambling markets have a wide variety of regulations and tools to help prevent compulsive gambling or treat those who have already been affected. Unfortunately, for countries entering the universe of betting, these responsible and sustainable measures require time and money to be put into practice, which these countries do not always have.”
But as Novota is keen to emphasize, the fact that offering protection to his players is difficult doesn't mean it's impossible: “Careful preparation is essential. Any regulator looking to kick-start their betting market should rather study how other countries have tackled the task and adopt what best suits their communities and circumstances. While no first attempt is perfect, regulators should seek to have a solid foundation to be able to propose their legislation in the future.”
Prevention of pathological gambling in Brazil
According to Neil Montgomery, who is Brazilian, pathological gambling has been a well-known problem in Brazil for a long time. When President Dutra decreed a ban on gambling and gambling in 1946, this was apparently largely due to the influence of his ardent Catholic wife and the fear of addiction he shared with her.
Because of this, as we know, Brazil is still awaiting regulation, at the federal level, of the lottery modality of fixed-quote sports betting. SECAP (Secretariat for Evaluation, Planning, Energy and Lottery), a division of the Ministry of Economy, announced its plans for a legal initiative late last year, in December. Since then, the last draft presidential decree circulated by SECAP provided for a concession model for licensing. There are rumors that there will be permission for up to 100 operators to operate within the national territory.
Montgomery adds that the regulation of Federal Law No. 13,756/2018 will contain provisions relating to responsible gaming. However, beyond these facts we know very little about the future regulation and the measures to promote safe play that will be included in it.
According to Matej Novota, Brazil has advertising policies for operators that are exceptionally well regulated, compared to countries like the United Kingdom, Sweden and others that set the trends. Brazilian law establishes that no marketing activity may contain misleading or abusive content. Furthermore, they cannot contain minors or target vulnerable groups.
Neil Montgomery also recognizes the contributions of CONAR (National Advertising Self-Regulation Council) in this regard. If an advertisement violates current legislation, the self-regulatory board investigates the case and decides what action to take. CONAR may file the complaint, leave the advertisement unchanged, request changes or remove it completely from the air. He also makes a point of mentioning that local and foreign companies (or operators in this case) with access to the Brazilian market must comply with the provisions contained in the Consumer Protection Code, in force since 1991.
Montgomery provides a strict legal framework that gives consumers and associations the right to take legal action against suppliers who offer defective services or products. In this context, suppliers must ensure that these products do not have negative impacts on the health or safety of their users and must provide clear, complete and correct information for those who use them, and on any type of damage they may cause.
The lawyer goes further in the discussion: "All of this is inherently linked to responsible gaming. It is also important to mention that the courts have begun to recognize that violations of the Consumer Protection Code committed by suppliers located abroad can be tried in Brazil. Extraterritorial application of Brazilian laws may also be valid for data protection cases, especially after the General Law for the Protection of Personal Data (also known as the LGPD) came into force in 2020 and the end of the grace period, which occurred recently on August 1, 2021”.
Despite all that has been said, both experts agree that Brazil is not yet well equipped to deal with pathological gambling. There are no limit betting requirements or opt-out mechanisms imposed on operators. Furthermore, online sports betting, although the law has not yet been regulated, is a legal activity.
How to stay safe when playing in Brazil
So, in the absence of other safety nets and measures to prevent pathological gambling, Brazil's current gambling community has to protect itself. Luckily, everyone can take steps to protect themselves from gambling addiction, whether playing abroad or planning their games with upcoming providers. Here is a short list of Matej Novota's tips for playing safely:
In addition to the list, Novota offers a warning and advice: “Some people may feel that these measures are not necessary, but I recommend that even people who don't see any problem with their habits follow these tips. Gambling addiction destroys lives and can even be deadly. So, with finances, family and career at stake, I don't think any care is excessive.”
Matej Novota
Professional with extensive experience in the betting industry. He has a comprehensive knowledge of the business and its human aspects, thanks to her experience evaluating online casinos and handling customer complaints from all over the world. Currently, he leads Casino Guru's casino assessment and complaint handling teams.
Neil Montgomery
Founding partner of the Brazilian law firm Montgomery & Associados, where he heads the Department of Sports of the Mind, Games of Fortune, Sports Betting, Lotteries and Raffles.
