The iGaming CPI in Brazil: What’s at Stake

By Marcelo Fadul – SCCG Brazil

Legalization of Betting in Brazil

Since 2018, fixed-odds betting (such as sports betting) has been legalized in Brazil under Law 13.756. However, it was only in December 2023, with the enactment of Law 14.790, that the sector became effectively regulated. The new legislation outlines rules for operation, payment methods, marketing, anti-money laundering procedures, and consumer service, and expands coverage to include online games of chance such as roulette and slots.

Why iGaming Matters

The regulation of the sector brought significant benefits to the country:
– Tax revenue
– Job creation
– Consumer protection
– Combating illegality

The Controversy Around Influencers

Despite legalization, the CPI’s main focus is on digital influencers. The main concern is that many of them promote betting platforms to a young audience without clearly indicating it is paid advertising. There are also suspicions that some contracts include commission based on user losses — raising ethical and legal concerns.

One of the most notable cases was that of influencer Virgínia Fonseca, who testified to the CPI stating her contracts do not include profit from user losses and that she complies with CONAR guidelines. Other names like Rico Melquiades and various streamers were also summoned.

In a moment that caught media attention, the influencer known as Tigrinho refused to play live during a CPI hearing, claiming he did not want to encourage gambling addiction. The moment went viral when the prosecutor insisted he play anyway.

What Now?

The CPI’s work is expected to result in stricter legislative proposals regarding the advertising and promotion of online betting, particularly on social media. The goal is not to criminalize the industry but to set ethical and legal boundaries that protect consumers — especially younger ones — from manipulative practices.