Messiah compares bets to a “dragon” that needs to be tamed

In a hearing at the Supreme Court, AGU argues that the current model is not aligned with the Constitution and that legislation needs to evolve

The Union’s attorney general, Jorge Messias, said this Monday (11.Nov.2024) that online betting – known as bets – is a “dragon” and that the challenge of the federal government is “tame it”.

Messias stated that, although the current law can still be considered constitutional, it is heading towards a “progressive unconstitutionality”due to its impacts on the mental health and family budget of bettors. He argued that “the powers of the Republic act to immediately correct the problems they cause”.

The minister participated in a meeting at the (Supreme Federal Court) to discuss the impacts of betting in Brazil. The meeting was called by minister Luiz Fux, rapporteur for the CNC (National Confederation of Commerce in Goods, Services and Tourism), who calls for the unconstitutionality of the She das Bets ().

“The Lula government will not tolerate practices that are harmful to the people, as the current business model of bets is definitely not aligned with the principles of the Constitution. This market must undergo adaptations in form and content or must be extinguished in the near future due to incompatibility with the Magna Carta”declared Messiah.

The Advocate General defended a “strict monitoring” that prevents the betting industry from “continue to drain resources and cause addictions, especially in the most vulnerable”.

BETS AUDIENCE

In addition to Messias, the following participated in the 1st part of the hearing on bets in the Supreme Court:

  • the Minister of Human Rights, Macaé Evaristo;
  • the CNC’s chief economist, Felipe de Sá Tavares;
  • the president of Solidariedade, Paulo Pereira da Silva;
  • PGR representatives;
  • the Secretary of Prizes and Bets at the Ministry of Finance, Regis Dudena;
  • the director of the Department of Management of the Unified Social Assistance System, of the Ministry of Social Development and Combating Hunger, Clara de Sá;
  • the representatives of the Ministry of Health, Luiz Henrique dos Anjos and Sonia Barros; and
  • the representative of Abert (Brazilian Association of Radio and Television Broadcasters), Gustavo Binenbojm.

The Minister of Human Rights gave the opening speech to the audience and spoke about the social impacts of online betting on the Brazilian population. He highlighted the negative consequences for the most vulnerable socioeconomic group.

He discussed the psychological mechanisms of attention capture in games that favor addiction and that betting is a “casino in the pocket of every Brazilian”due to the ease of access.

He stated that if legal requirements prove to be insufficient to prevent damage, the country will be faced with something unconstitutional “for the violation of human dignity”. He therefore requested that the Supreme Court “consider the need to preserve the needs and human rights of the Brazilian population and affected families”.

The CNC’s chief economist presented a study carried out by the institution that showed that debt resulting from betting could have affected consumption and, therefore, the economy. Along these lines, he estimated that retail will no longer earn R$90 million in 2024.

PGR representatives, Luiz Augusto Santos Lima and Cecília Leitão, reinforced the body’s concern with the issue and said that they have been following the Treasury’s regulatory process. Lima also said that he sees no problem in using immediate precautionary resources, aimed at suspending advertisements and preventing beneficiaries of social programs such as Bolsa Família and BPC from gambling.

Dudena spoke about the work of the Secretariat of Prizes and Bets and stated that regulation is the best way for the State to maintain its presence in the sector, since making the Bets Law unconstitutional could encourage the illegal market and worsen the problems, without externalize the possible benefits.

Finally, the Abert representative defended that the STF adopt initial containment measures regarding the publication of advertisements by bookmakers and reiterated his commitment to the Constitution and ethical and socially responsible advertising.

BC STUDY

A survey by the (Central Bank) showed that bookmakers received R$10.5 billion from Bolsa Família beneficiaries from January to August this year. The study was carried out at the request of Senator Omar Aziz (PSD-AM). Here is the document (PDF – 312 kB).

On Tuesday (September 24), Campos Neto said, during an event in São Paulo, that the data is “quite worrying” and has had an effect on family defaults.

According to the survey, more than 8.9 million people belonging to the program sent resources to betting houses. The average value was R$1,179 per person from January to August.

The data shows that the average expenditure by Bolsa Família beneficiaries was R$1.31 billion per month, or R$147 per person. Of these betting people, 5.4 million (60.5%) are heads of families – who, in fact, receive the benefit – and sent R$6.23 billion (59.3%) via Pix to bets.