Gelfi explained to UOL what else can be done to minimize the negative effects of these services.
Rules in advertising, yes, but no prohibition
Andre Gelfi does not give up on advertising for betting companies, but he believes that, like in any other economic sector, it must follow rules to avoid manipulation and consumer abuse. He also criticizes influencer advertising.
"We definitely support the idea that advertising limitations are necessary, and for that, everyone needs to understand what’s happening in the betting market to make adjustments. We want to enable these new rules through dialogue. Today, we have a very immature market, and the challenge is to bring it into formalization. That’s why regulation is so important."
"Limiting advertising is valid. It's necessary to follow the rules of the National Council for Self-Regulation in Advertising (Conar). However, if the government decides to ban commercials, there are some risks. To bring customers from informal betting platforms, which do not follow any rules, into the formal sector, you need advertising," Gelfi analyzes.
"From an economic perspective, we need to consider that football today relies on betting sponsorships as its main source of funding. Media groups also sell their packages to betting companies. In other words, there is an entire economic movement driven by this market. So, in my mind, a direct ban in a country where the industry is still new, and where there is still a lack of knowledge to distinguish between right and wrong, seems like a premature solution."
"It's essential to have rules to prevent abuses. We must also curb influencers who use their platforms to advertise betting companies without following any rules, misleading the public with fake winners and promising big profits from betting. I think platform engagement is crucial to monitor this content and take down those accounts if necessary."
Bonuses should exist, but must be used responsibly
Bonuses, advertisements with promotions, and suggestions of high-earning bets are often blamed for excesses and addiction. The president of IBJR is against banning such practices but says companies must use them cautiously.
"Indeed, poorly implemented bonuses can lead to undesirable consequences in the relationship between the bettor and the betting house. But we understand that loyalty and recurring customer relationship measures should be placed within a broader framework. After all, anything you prohibit in the formal betting market will help strengthen informal websites and apps, which will continue to exist," Gelfi asserts.
"Regulation makes it clear that bonuses that encourage you to open an account are not allowed. A bonus for the first deposit, as we call it in the industry. But banning commercial promotions that you offer to your customers would be an excessive control measure within the activity because there are other ways to avoid excesses, such as monitoring time spent on the platform, excessive spending, and other measures."
Minors cannot bet under any circumstances
Gelfi states that the government’s ordinance, which will be implemented in 2025, completely prohibits any chance of a minor placing a bet. "Children and teenagers cannot bet, of course. And this already doesn't happen in our betting apps, in the more serious platforms," he clarifies.
"This will be completely banned under the new regulation starting January 1st, which will require facial recognition from users. A person logs in, and when placing a bet, they will be asked for facial recognition, just like banks do here in Brazil. The system will cross-check the user’s profile with their facial data. Then you'll know that the CPF (taxpayer ID) belongs to someone over 18, and that the person logging in is indeed the one who opened the account and provided the documentation."
"It will be nearly impossible for a minor to place a bet or transact on the site unless they have parental permission."
Betting companies already monitor excessive gambling
According to Andre Gelfi, more serious companies already control user actions and have procedures in place to prevent people from betting beyond their means, which could turn betting into a severe financial issue.
"Today, it’s already possible to detect when someone is betting beyond their capacity by observing user behavior. If they are depositing an amount that doesn’t match their income, we have a policy to request income verification, especially to check if there might be money laundering involved when the amount exceeds R$10,000."
"At the moment, when you register, I don't know what your income is. I’ll only find out when you provide your documentation. Then, if you exceed a certain limit—each company has its own limit, you will be contacted to submit that documentation, and your account will be temporarily blocked," he explains.
"If we identify that a customer has exceeded their limit, we have various ways to inform them that they can no longer bet. Through a phone call, an SMS, or a WhatsApp message, they will be notified that a temporary block will be imposed until they get in touch with us."
"Today, there are many credit bureaus [a credit bureau is a legal company that collects and provides information on the financial history of individuals and businesses] that provide the profile of that CPF. They give you a credit score, movement habits, and things that help you identify abnormal behavior that is no longer healthy. Initially, we won’t have all the user data, but we will certainly have a lot of information," Gelfi concludes.
Source: UOL
