In a move to protect vulnerable populations and promote responsible gaming, Brazil’s Supreme Federal Court (STF) has issued a landmark ruling that bans the advertising of online fixed-odds betting games to children and adolescents. The court has also ordered measures to restrict the use of funds from social welfare programmes, such as Bolsa Família, for online betting.
The decision was issued by Minister Luiz Fux, who highlighted the evidence about the negative impact of gambling advertising on the mental health of young people and the potential financial harm to vulnerable families discussed at the public hearing held on November 11th and 12th. For him, the risk of delay in the decision “must be removed immediately, under penalty of the non-application of rules already issued, until January 2025, worsening the already critical current situation.”
The court’s intervention comes as Brazil grapples with a surge in online betting, fueled by aggressive advertising campaigns and easy access to betting platforms.
What the industry thinks
The National Association of Games and Lotteries () has welcomed the court’s decision, stating that it aligns with the responsible gaming principles advocated by the betting industry. The association’s members, who are committed to fair and responsible gaming, have been actively working to address concerns about problem gambling and underage betting.
The court’s ruling is expected to have a substantial impact on the Brazilian betting market. It will force betting operators to re-evaluate their advertising strategies and implement stricter age verification measures. Additionally, the decision could lead to increased scrutiny of the industry’s practices and the development of stronger regulations to protect consumers.
Challenges remain
While the court’s decision is a positive step, challenges remain. The rapid evolution of the online gambling industry and the constant emergence of new platforms pose ongoing challenges to regulatory efforts. Besides, the effectiveness of the measures implemented to restrict the use of welfare funds for betting will depend on robust enforcement mechanisms.
Despite these challenges, the court’s ruling sends a clear message that the protection of vulnerable populations and the promotion of responsible gaming are paramount. By taking decisive action against harmful advertising practices and the misuse of welfare funds, Brazil has demonstrated its commitment to safeguarding the well-being of its citizens.
As the betting industry continues to evolve, regulators, industry stakeholders, and policymakers must work together to develop effective strategies to mitigate the risks associated with gambling. By promoting responsible gaming practices, educating the public, and implementing robust regulations, Brazil can strike a balance between the economic benefits of the betting industry and the protection of its citizens.
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