Brazilian Senate Launches CPI to Evaluate the Influence of Online Betting

The Brazilian Senate has formally initiated its Parliamentary Commission of Inquiry (CPI) of Bets, which will follow up on the rapid growth and alleged irregularities of online betting businesses that operate in Brazil. The new commission will investigate the financial consequences of online betting on family budgets, possible links to organized crime in the betting business, and influencers promoting gambling platforms.

The Commission Will Look into Several Contentious Issues

The CPI will be led by Senator Soraya Thronicke, who initially called for the commission’s formation. Senator Dr. Hiran will serve as committee chair, supported by Senator Alessandro Vieira as vice-chairman. The CPI will have 130 days to complete its inquiries. Thronicke noted that the commission would also look into suspicions of money laundering and other potential misconduct.

The matter is extremely serious, involves organized crime, and involves people of great national and international prominence.

Senator Soraya Thronicke

Thronicke noted she had secured the cooperation of the Federal Police, who would assist with the investigations. The Senator stated that the “exorbitant amounts” from the betting platforms were a cause for concern as the platforms are considered vulnerable to criminal influence. She added the commission would focus on identifying gaps in the current regulation and enforcement mechanisms.

According to Thronicke, the CPI harbored suspicions that the software used by some gambling operators did not match regulations and was rigged to guarantee exorbitant profit margins for the companies. The commission will also look into safe gambling practices, as gambling addiction can often be challenging to detect before it spirals out of control.

Brazil Escalates Its Regulatory Efforts

A second ongoing CPI focuses on potential game manipulation within sports, primarily soccer, following instances where players allegedly received money to skew match results. This commission seeks to investigate players, directors, and betting companies, thus ensuring soccer’s integrity. The Senate initially launched the game manipulation CPI in April but extended its term until February 2025.

These efforts align with Brazil’s goal to ensure the smooth launch of its regulated betting sector. On 11 October, the nation’s Supreme Federal Court launched a public hearing on the consequences of online betting. During that session, more than 30 experts, including representatives from public bodies and organizations, testified about the potential risks and benefits of the betting industry.

As the new Bets CPI launches its investigations, legislators aim to clarify the industry’s role in Brazil’s economy, identify potential risks to public welfare, and determine necessary regulatory steps. The commission’s findings could shift how Brazil approaches online betting, helping balance economic benefits and consumer protection.