In light of the expected increase in litigation involving the gaming and betting sector, a consequence of market expansion, regulation, and the establishment of operators in Brazil, Mattos Filho will discuss the outlook for 2025 with Francisco Carvalheira Neto, General Coordinator of Regulation of the Secretariat of Prizes and Bets (SPA), and Juliana Nakata Albuquerque, Executive Vice President of Conar, at a live event in São Paulo, on the 21st at 9 AM.
The gaming and betting sector has experienced rapid growth in Brazil since 2018, when Law 13.756 legalized fixed-odds sports betting, creating a regulatory vacuum that lasted until recently.
At the end of 2023, the regulatory shift began: Law 14.790/2023 was enacted, which included online games among the legalized fixed-odds bets and gave the Ministry of Finance the authority to regulate the sector.
At the beginning of 2024, the Secretariat of Prizes and Bets was established, which conducted a thorough regulation throughout this year, drawing on lessons from international experience, yet innovating and making necessary adjustments to the Brazilian context.
The popularization of this type of entertainment, driven by advertising, was staggering.
According to the Central Bank, it is estimated that Brazilians spent more than R$ 20 billion on online games and bets just in August 2024. It is estimated that there are currently more than four thousand active betting sites.
From January 1, 2025, only authorized companies will be able to operate in the Brazilian market, enabling control and oversight of activities. The companies that have submitted authorization requests to the Secretariat of Prizes and Bets to operate in this market total more than 250 and represent more than 750 brands.
The regulations require that operating agents implement security and governance policies, in order to prevent illicit practices such as money laundering and fraud. It also requires that operating agents pay special attention to consumers and issues such as responsible gaming, advertising, and customer service.
Much has been discussed about this regulation, including how to interpret and apply it, especially from the perspective of consumer relations.
The expansion of the sector, coupled with regulation and the installation of operators in Brazil, promises a boom in litigation involving this theme. Lawsuits are already multiplying and give indications of the issues that will dominate the agenda of these companies' litigation.
This sector can expect everything from public civil actions and investigations by authorities on advertising and other structural business issues, to actions by players on various topics, such as technical failures on the site, account closures, and liability for pathological gambling.
Brazilian courts can be a challenging terrain for companies that provide regulated and consumer services.
Mattos Filho will discuss these expectations, on the next 21st of November, at 9 AM, in São Paulo, with Francisco Carvalheira Neto, General Coordinator of Regulation of the Secretariat of Prizes and Bets of the Ministry of Finance, and with Juliana Nakata Albuquerque, Executive Vice President of Conar.
Register for the event organized by Mattos Filho here.
Source: Mattos Filho
