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The present Parliamentary Commission of Inquiry (CPI) on “Bets” in the Brazilian Senate has revealed severe problems with unauthorized betting operators, as described in the testimony of Sergio Pompilio, president of the National Council for Advertising Self-Regulation (Conar). On May 8th, Pompilio addressed the commission, emphasizing that a staggering 80% of complaints to the regulatory authority involve unauthorized betting operations.
Unregulated Bets Dominate Complaints
Pompilio adds that most advertising content concerning bets that Conar has notified pertains to unauthorized operators. “Much of the advertising content regarding bets has indeed been notified, modified, and suspended. What is the main problem? Nowadays, 80% of the complaints we receive, either from consumers or from other betting operators, concern unauthorized bets,” he explained. Pompilio highlighted the difficulty in regulating these illegal operators because their enforcement is typically left to law enforcement and not regulatory authorities.
Foreign Operations Make Supervision More Complicated
Pompilio also cited the challenge of overseeing betting operators in foreign territories, but accessing Brazilian players through social media. “It is almost impossible to regulate a betting company set up in Asia that uses Portuguese language advertising and reaches Brazilian kids and adolescents on social media,” he said. Pompilio highlighted the responsibility of social media platforms to remove illegal betting content, as such platforms are primary distribution channels for unauthorized operators.
Controversy over the Prohibition of Betting Adverts
During his testimony, Pompilio was interrogated by CPI rapporteur Senator Soraya Thronicke (Podemos–MS) regarding the potential consequences of a ban on advertising by regulated betting operators. Pompilio warned against a blanket ban on the basis that this could inadvertently create a gap for illegal operators to fill. “A blanket prohibition could bring more confusion and losses than a regulated, self-sustaining situation where public and private authorities act,” he maintained.
Pompilio also acknowledged that the ubiquitous “Play Responsibly” warning imposed on gambling advertisements loses effectiveness in conveying the risks of gambling. He suggested that it would be preferable if the warnings were more explicit and as provided on Conar’s Annex X, which are specially crafted to effectively convey the risks of gambling.
Influencer Fails to Show Up at CPI
The hearing on May 8th was also supposed to listen to testimony from social media influencer Rico Melquiades, who was summoned to testify on his alleged role in the Game Over Operation coordinated by the Alagoas Civil Police. The investigation centered on how Melquiades promoted illegal gambling platforms. Even after signing a non-prosecution agreement with a fine of R$ 1 million, Melquiades did not appear for the session, his attorneys claiming that they were not able to inform him in time. The CPI is waiting for Melquiades to appear in the subsequent session on May 15th.
Implications for Brazil’s Betting Industry
Pompilio’s evidence identifies a growing issue for policing Brazil’s expanding betting industry. With illegal operators continuing to dominate consumer complaints, regulatory bodies like Conar are coming under greater pressure to police advert content successfully. Furthermore, with the CPI continuing investigation into gambling operations, greater scrutiny is to be expected on licensed and unlicensed operators alike, along with their marketing campaigns targeting vulnerable segments.
Source: YogoNet
