VIE 27 DE DICIEMBRE DE 2024 - 00:53hs.
Regulation

New bills in Minas Gerais seek to limit advertising of ‘Bets’ and create educational campaigns

Already targeted for regulation at the federal level, the so-called ‘Bets’ are also the subject of proposals at the state level in Minas Gerais. Two bills filed with the Legislative Assembly establish rules to limit advertising of the operators and create educational campaigns for children and adolescents about the risks associated with the practice, which is currently experiencing its peak in financial activity in Brazil.

Both bills were filed in the Minas Gerais Legislature by State Representative Beatriz Cerqueira (PT). The first, PL 3,017/2024, proposes the creation of a state campaign to raise awareness about the harms and risks of gambling and online betting in public and private schools across the state.

The project calls for the development of educational materials and the organization of lectures, debates, and workshops to educate about the dangers of online gambling. It also requires that education professionals receive training to recognize signs of problematic use and risky behavior among students concerning betting.

The rationale presented by the parliamentarian specifically mentions a type of service known as “jogo do tigrinho” (Fortune Tiger). According to Cerqueira, this form of online betting has a particular appeal to young people.

“The ‘jogo do tigrinho’ or slot game is an example of this type of game, appealing to the curiosity and impulsiveness of children and teenagers, and widely promoted on social media. Exposure to gambling environments can be considered a violation of the fundamental rights of children and adolescents, leading to administrative and criminal sanctions, as outlined in Article 243 of the ECA (Child and Adolescent Statute),” a section of the text reads.

Meanwhile, Bill 3,033/2024 prohibits the advertising and promotion of online betting and gambling in Minas Gerais. The ban applies not only to advertisements in media outlets and public spaces, like billboards, but also to sponsorships at sporting, civic, cultural events of any kind, as well as sponsorships to clubs, entities, companies, or any institutions, whether public or private.

Penalties for violating the law, if the text is approved, include warnings, temporary suspension of advertising activities in the state, and fines of 3,000 Fiscal Units of the State of Minas Gerais (UFEMG), currently valued at around R$ 5.28 each. The sanctions also extend to technology companies and internet operators that facilitate the dissemination of betting advertisements on digital platforms.

Bolder in scope, Bill 3,033/2024 will face resistance from a flood of betting ads in media vehicles and institutions with strong popular appeal. Among the men’s football clubs in Series A, B, and C of the Brazilian Championship, for example, 52 of the 60 members have some online betting company as a sponsor, according to an October publication by Banco do Brasil.

Even traditional city landmarks, such as the nearly century-old Mercado Central in Belo Horizonte, have received sponsorships from sports betting companies. Recently, the capital’s tourist attraction changed its naming rights to include the KTO brand in its designation.

Both projects presented by Beatriz Cerqueira were filed in the Assembly in the first half of November and have not yet reached the initial stages of review by the deputies. The texts still need to go through the thematic committees before being voted on in two rounds in the House Plenary.

The expansion of the so-called ‘Bets’

The debate over the regulation of betting in Brazil has stirred public discourse in recent months. The issue is analyzed from two main perspectives: economic and social.

The economic aspect relates to the potential revenue tied to a market that already moves billions of reais in the country. The social aspect addresses the compulsive behavior of some bettors, which leads to family debt and even affects mental health.

While the federal government and National Congress discuss the matter, the DataSenado Institute released data in October about the profile of bettors and the impact of betting on family budgets across the country.

The survey showed that 13% of Brazilians aged 16 or older, approximately 22 million people, reported participating in this market in the last 30 days.

It also revealed that more than half (52%) of bettors earn up to two minimum wages per month. Most also stated that they spent up to R$ 500 on betting apps or websites. The survey further indicated that 58% of bettors had debts overdue for more than 90 days.

Online betting in Brazil was legalized through a provisional measure (MP) signed by then-President Michel Temer (MDB) in 2018. The first regulation of the market only came last year with Law 14,790, approved in December 2023.

However, the law only addresses the establishment of fixed-odds betting, where the customer knows the return rate before placing a bet.

Source: Estado de Minas