The CPI on Financial Pyramids suggested measures to hold internet personalities accountable; gambling is banned in Brazil
The advertising of games of chance and bookmakers is in the sights of the National Congress, and the case raises discussions about the participation and responsibility of digital influencers in advertising online casinos. Last week, the Parliamentary Commission of Inquiry (CPI) into Financial Pyramids concluded with the suggestion of four bills to regulate the sector. Among them is a proposal that would punish internet personalities who advertise online casinos.
Land-based casinos are banned in Brazil, but as the companies' headquarters are in other countries, this makes it possible for these sites to operate in the country. Players just need to create an account on one of these sites and declare themselves to be of legal age to have access to games such as slots, roulette, blackjack and poker.
To start betting, apps generally require players to deposit a sum of money. Users then start to win in the first few rounds, but then it becomes more difficult to keep up the winning streak.
"A friend showed me a link, I joined, put in R$30 and won R$150. Then I started playing and losing, and as you lose you become desperate, because you want to recover what you've lost. It became a snowball. One day I lost R$600," says graphic designer Josevan Barbosa de Souza. "It's a game that works a lot with the psyche. It gives you a momentary gain, but when you put more money in, it starts to take away what you have," he adds.
Marcelo Mattoso Ferreira, a lawyer specializing in games and eSports, says that online casinos are prohibited by law, as they constitute a criminal offense (art. 50 of Decree-Law 3/10/41). In addition, influencers can be held responsible for promoting illegal games.
He also reiterates that casino games are different from sports betting, called fixed odds. These are already regulated by law 13.756/18, which was recently amended by a provisional measure from the federal government, imposing tax on company profits.
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"Each country has its own understanding, whether it's about the games themselves or the form of advertising done by influencers. In Brazil, advertising and publicity about online casinos of any kind (conventional channels or influencers) is not allowed, since it is an illegal activity," says Ferreira.
"Sports betting, on the other hand, is authorized by Brazilian law, but we still need regulations from the Ministry of Finance. Currently, the betting sites operating in the Brazilian market are based abroad, due to the lack of regulation, but the idea is that the scenario will change in the coming months," he says.
This means that the context of sports betting advertising is also hazy. "As a result, there are those who say that advertising and publicity for this type of activity is lawful, if done within the legal limits and in accordance with the guidelines of Conar [the National Advertising Self-Regulation Council]," he emphasizes.
Conar is currently discussing the issue through a working group that is drawing up self-regulation rules for sports betting advertising. The expectation is that the regulation will guarantee that sports betting marketing and advertising actions are responsible and ethical, based on the sector's self-regulation measures used in other countries. The group was set up in June this year, and there is no forecast of when the proposal will be presented to the Ministry of Finance.
Stricter rules for influencers
As well as cracking down on games of chance, one of the four bills proposed by the Cryptocurrency CPI suggests tougher rules on online gambling advertising by digital influencers. In this case, personalities with more than 20,000 followers on social networks will have to establish contracts that make the relationship between the contracted party and the contractor more transparent.
According to the committee's rapporteur, Congressman Ricardo Silva (PSD-SP), during the course of the committee's work it was found that many criminals who organized financial pyramids made use of hiring digital influencers to attract victims.
"As we move forward with investigations into the type of relationship maintained between influencers and their contractors, we see that it is often marked by opacity. This makes it difficult to ascertain the possible responsibility of celebrities who convince their followers to enter into a financial scam," he said.
The issue is also being discussed in the Senate, in the Sports Committee. Among the bills ready to be voted on in the committee is a suggestion, authored by Senator Eduardo Girão (Novo-CE), which provides for a ban on the participation of people considered celebrities or with power of influence in betting advertising. The proposal's rapporteur, Senator Sérgio Petecão (PSD-AC), recommends its approval.
For Girão, "the virtual environment has ironically become a kind of lawless land, where not only harmful sports betting but also a series of illegal games and other fraudulent activities thrive".
According to the parliamentarian, the expansion of gambling addiction, boosted by internet betting, is associated with the practice of crimes such as money laundering, tax evasion and revenue avoidance.
Mental damage
It is possible for a gambler to gamble recreationally; however, the internet has facilitated addiction by making gambling more accessible. This is what neuropsychologist Juliana Gebrim explains. "The internet offers a wide variety of online games, increasing the appeal and temptation for players. Social networks and digital influencers also play an important role in promoting online gambling, which can negatively influence followers, especially younger and more vulnerable ones," she says.
She also explains that the principle of addiction is the same for all classifications of addiction: people can start gambling for fun, out of curiosity or even with the intention of making money. Once addiction has set in, the gambling brain undergoes neurochemical and structural changes that can have significant consequences for the individual's mental health and cognitive functioning.
"Excessive activation of the brain's reward system leads to an incessant search for pleasure and reward, leading to changes in brain structure and function. This can result in difficulty controlling impulses, making rational decisions and dealing with negative emotions. In addition, gambling addiction can lead to financial problems, damaged relationships, social isolation, anxiety, depression and suicidal ideation," says Gebrim.
In the same vein, psychologist Paulo Gomes says that there is a strong link between drug addiction and gambling addiction. "The individual becomes addicted because gambling activates the reward sectors, such as the limbic system, whose neurons have numerous receptors for the neurotransmitter dopamine, which is a molecule responsible for pleasure," he explains.
For neuropsychologist Roselene Espírito Santo Wagner, the legislative suggestions under discussion touch on complex problems that need to be widely debated.
"Every attempt to tackle what causes addiction I see as implementing 'harm reduction'. I note that prevention has always been more effective than correcting a problem that is already in place. Through grassroots education, especially financial education and the development of an emotional intelligence curriculum, it would be more effective in the long term to educate children to become emotionally and psychologically healthier young people and adults. This would have a direct impact on building a more balanced culture. With more physical and mental health," he says.
Source: R7