Senate Inquiry urges vote to impose radical penalties on Brazil Bets regime

Ricardo Assis – SBC Noticias Brazil
The CPI’s rapporteurs are demanding a shock to the system and reset of the governance, regulation, and enforcement of Brazil’s online gambling sector. Ricardo Assis, Editor of SBC Noticias Brazil declares that all regulatory conditions the Bets regime face scrutiny.

A series of radical reforms, penalties and criminal enforcements have been proposed by the Senate’s Commission Inquiry (CPI) evaluating the economic and social impacts of the Bets Regime.

Just 19 weeks since the CPI commenced its evaluation, led by Senator Soraya Thronicke (Podemos–MS) and Dr Hiran Gonçalves (PP–RR), the rapporteurs have submitted their recommendations to the Senate.

The CPI was established to evaluate the economic liabilities and social threats of Brazil legalising online gambling since 1 January 2025.

The inquiry heard testimonies from operators, stakeholders and whistleblowers on wide ranging topics from fraud and match-fixing to money laundering, advertising malpractice and the absence of consumer safeguards.

Of significance, the inquiry hit national headlines after testimony concerning Virginia Fonseca, a social media influencer with over 50 million followers, who is accused of misleading advertising and acting as a financial beneficiary of unlicensed operators.

As reported by SBC Notícias, the CPI’s final report calls for 16 indictments, targeting both individuals and entities. Fonseca, alongside influencer Deolane Bezerra, is named in connection with promoting illegal betting operators, with the report stating it was “unlikely” that Bezerra “ceased to be an effective partner and simply became a spokesperson.”

The report proposes the criminalisation of match manipulation in sports be signed into federal law. An action to be governed by the creation of a ‘National Sports Integrity Authority’, that will oversee the regulation of automated systems used by betting platforms.

Algorithms, the report noted, often operate without independent certification, making it “difficult for the bettor to assess the real risk involved.” A technical audit protocol is proposed, under regulatory supervision, to ensure transparency in how odds and promotions are determined.

The commission warns that betting platforms have become conduits for illicit financial activities. Evidence presented to the CPI outlined the use of fragmented transactions, third-party CPFs, untraceable crypto operations, and withdrawals routed through accounts tied to Brazil’s social welfare schemes. To counteract these abuses, the CPI has recommended data-sharing protocols between the Federal Tax Authority, COAF, and licensed operators, as well as regular financial audits.

Brazilian football, a key beneficiary of betting sponsorship, came under heavy criticism. Club executives admitted they lacked integrity departments and were often unaware of commercial terms involving gambling partners, with many deals brokered through intermediaries. The commission labelled this state of affairs “institutional omission” and “structural unpreparedness.”

Digital influencers, a core channel for consumer engagement, were described in the report as central players in normalising irresponsible betting behaviours. As such, affiliate contracts linking influencer revenue to user losses were described by the commission as “anti-educational and perverse.” The CPI has formally requested investigations into these arrangements by COAF and Receita Federal.

The report further urges an outright ban on online casino-style games, denouncing them as “online slot machines with exclusively deleterious characteristics,” while calling for extensive reform of betting advertising, including:

Prohibition of gambling ads during prime-time TV
Bans on welcome bonuses and misleading promotions
Mandatory age and financial suitability checks for bettors

Additional proposals include embedding gambling addiction awareness and financial literacy into school curricula, alongside national prevention campaigns supported by the SUS, NGOs and “conscientious influencers.”

Despite being tabled, the report will not be voted on immediately. As SBC Notícias reports, several senators have called for more time to review its recommendations. CPI President Dr Hiran has since indicated that he will move to postpone the vote until the following week.

Political consequences now loom for Brazil’s fledgling Bets Regime. Last week, Finance Minister Fernando Haddad has backed a provisional measure to raise the GGR tax on licensed operators from 12% to 18%, as a measure to fill budgetary gaps of the PT government.

A pending tax hike underscores the government’s push for tighter fiscal and regulatory oversight, prompting a coalition of trade bodies to challenge a tax framework they argue imposes an effective burden exceeding 50%.

The publication of the CPI’s report and its pending vote bring a turbulent close to the first six months of the Bets Regime existence. With mounting headwinds of tax hikes, compliance demands and the threat of criminal sanctions, the competitive landscape of Brazil’s online gambling market is poised for reshaping in the second half of the year. The only certainty, it seems, is continued volatility of a fragile Bets market that has been radically transformed since its launch on 1 January.

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Gordon Moody makes crisis call at House of Commons

The UK’s leading residential treatment charity Gordon Moody co-hosted a reception with Labour Party MP Chris Bloore at the House of Commons yesterday to raise awareness of the growing crisis surrounding the implementation of the research, education and treatment levy. A room full of dignitaries, industry representatives and other charities heard about the life-changing services…

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ASA raps Ladbrokes for ‘Ladbucks’ social currency ad with under-18s appeal

The Advertising Standards Agency (ASA) has upheld two complaints against Ladbrokes for an advertisement that was deemed to be of strong appeal to those under the age of 18 and in breach of the BCAP and CAP Code.

The advert in question from the Entain brand featured ‘Ladbucks’, the operator’s free-to-play games currency, and was aired on TV and video-on-demand on 17 December 2024 and 23 December 2024, respectively.

Imagery of coins with the initials ‘Lb’ was shown in the advert, alongside text that said “100m LADBUCKS”, FREE BETS” and “FREE SPINS”.

A voiceover in the advert stated: “This is a Ladbuck, the new way to get rewarded at Ladbrokes, and these are some of the 100 million Ladbucks that will be dropping weekly. Collect them on our free-to-play games and choose rewards like free spins, free bets and more.

“Over 100 million Ladbucks dropping every single week. Plus, you can even use them to play your favourite games for free in our Ladbucks arcade. Like Fishin Frenzy and Goldstrike. Start collecting at Ladbrokes.com.”

Ladbrokes contests Ladbucks’ appeal to minors

The reason why it is believed the term ‘Ladbucks’ could be of strong appeal to minors is because of its similarities to the in-game currencies of ‘V-bucks’ from Fortnite and ‘Robux’ from Roblox, two games popular with under-18s.

Ladbrokes argued that Ladbucks could only be used by logged-in, verified users over 18, couldn’t be purchased, had no monetary value, expired if not used, lacked a general market value with an exchange rate, and couldn’t be universally used across all products on its website.

Additionally, the Entain brand said each eligible product or offer had a set value, which was in contrast to in-game currency products, and that the term ‘Ladbucks’ was a play on the word Ladbrokes.

The operator argued that the term ‘bucks’ is “known as a colloquialism for dollars and was widely used to refer to money or a unit of currency in many contexts, which included video games”, had no origins in youth culture, and they believed it wasn’t of inherent strong appeal to under-18s.

Ladbrokes noted that both ads “had targeting restrictions to reduce the likelihood of children viewing them” and believed the term “was not associated with any coins from videogames which were popular with under-18s”.

It was highlighted by the operator that ‘V-bucks’ from Fortnite and ‘Robux’ from Roblox were in-game currencies that had to be purchased before being used to buy in-game items, certain elements of Robux required parental consent, and the purchaser of subscription services must be over 18.

As a result, Ladbrokes said the term bucks was the only similarity between those coins and Ladbucks, adding that the rewards programme was reviewed in its entirety with a conclusion that there was no risk of the term being associated with Fortnite or Roblox.

The operator also argued that other industries use reward schemes and that using poker chip imagery was suitable for a licensed gambling operator, and so argued that there was nothing in the advert’s imagery and content that shared similarities with either of the games.

The Entain brand also mentioned that they didn’t believe the term ‘lad’ “referred to a boy or young man”, and said their brand had never been used in that context, that Clearcast didn’t believe the term ‘Ladbucks’ appealed strongly to children or that the tokens were similar to in-game currencies.

Meanwhile, the broadcaster that showed the advert on its streaming service, Channel 4, believed the advert was compliant with the code.

ASA upholds complaints

In response, the ASA believed the Ladbucks name and appearance could be of appeal to minors due to their similarities to the in-game currencies of ‘V-bucks’ from Fortnite and ‘Robux’ from Roblox and how many under 18s play video games.

The agency also stated that Ladbucks, through the suffix ‘bucks’, had strong similarities with in-game currencies Robux and V-bucks because the latter Fortnite currency is a shortened version of ‘Vindertech’ bucks, which was a fictional company in the video game, and so similarly constructed.

Regarding the term ‘lad’, the ASA disagreed with Ladbrokes and said the term ‘lad’ was a colloquial term for a boy or young man, and so in the ad’s context alongside the word buck, it would have been recognised and of appeal to some minors.

In addition, the ASA noted that the Ladbuck poker chip design has the same characteristics as the V-buck, while the Robux’s previous iteration was also of a similar appearance.

Although Ladbrokes’ position as a gambling operator was acknowledged as a reason behind the design, the ASA stated that it was not poker chip imagery in isolation, but the token’s imagery alongside the term Ladbucks that was likely to have been perceived by many under-18s as similar to video game in-game currencies that are of strong appeal to minors.

It was also noted that the use of Ladbucks in an online store and arcade was “likely to be reminiscent of the way in-game currencies Robux and V-bucks were used” and therefore increase its appeal to minors.

The ASA stated: “For those reasons, we concluded the name Ladbucks, when considered alongside the imagery and the application of the coin in the ads, was depicted in a manner which was similar to features in video games popular with children. We therefore considered the term in the ads was likely to be of strong appeal to under-18s and breached the Code.”

The agency added that the adverts must not appear again in their current form, and Ladbrokes has been told not to feature content in their adverts that has a strong appeal to under-18s or is reflective of youth culture.

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BGC: Increased gambling tax would bolster the dangerous black market

Fears of a tax increase on online gambling in the UK loom while a new YouGov survey suggests that 65% of bettors agree that such change “would make customers turn to unregulated betting sites”.

The research was commissioned by the Betting and Gaming Council (BGC), the trade and standards body for UK betting, which warns that this shift could not only fail to generate more tax revenue but also jeopardise player safety.

Furthermore, the BGC is also concerned that increased taxation would severely impact the financial health of sports, particularly horseracing, which currently receives significant funding from its members.

Undermining the regulated gambling market

UK gambling is a highly regulated sector, servicing 14 million adults (excluding the National Lottery) who gamble per month and generating £10.9bn in annual gross gambling yield (GGY).

Licensing duties see consumers protected by safer gambling rules, compliance monitoring, customer care interventions, responsible gambling tools, controls, and financial probity – UKGC.

With the government now consulting on a major change to the way betting and gaming is taxed online, fears of a price increase for betting on sports like racing and football are only on the rise.

Sporting betting and online gaming is currently taxed at different rates, but last month HM Treasury launched a new consultation which proposed a single new tax.

Describing the stats as “shocking”, BGC CEO Grainne Hurst said that these figures prove what’s at stake if the government forces through a self-defeating tax hike on ordinary punters.

“It’s clear it will not raise more tax, it simply risks forcing huge numbers of customers out of the regulated market, with its world leading standards on player safety, into the arms of the growing, illegal, unregulated and unsafe gambling black market online,” she said.

“Any tax rises would make a mockery of the Government’s growth strategy and be catastrophic for horseracing, which is already facing a bleak financial outlook.”

A wake up call
The study revealed that only 23% of punters believe a tax hike is unlikely to have an impact on customers moving towards the black market.

It is also worth noting that the argument around the potential impact of the black market is a long-running one – and one which politicians have not always been very receptive to.

Hurst continued: “This is a wake up call for the government, punters have been loud and clear, hit them with further taxes and they will walk away from sports like racing, straight to the black market, triggering a spiral of decline.”

The survey posed a scenario to customers: “Imagine that betting on sports events like horseracing became more expensive because the government increased the amount of tax that betting companies have to pay. How likely or unlikely do you think it is, if at all, that this would make customers turn to unregulated betting sites that don’t have to pay any tax at all?”

As stated above, the BGC’s main concerns are about the black market. It was only at the end of last year that the Council warned the government that unregulated black market gambling poses greater risks than perceived by British consumers.

This followed a study published by microeconomics consultancy Frontier Economics and was described as “the first major study on the black market since the publication of the previous Government’s White Paper on gambling reforms”.

The coverage and ease of promotion of illegal websites were detailed as an area of concern, as 15% (2.8 million people) of gamblers who responded to the survey said they had heard of at least one of the black market sites listed.

The BGC also revealed that 1.5 million Brits stake up to £4.3bn on the growing gambling black market annually.

The organisation concluded: “This growing, unsafe, illegal gambling black market does not contribute to sport, does not pay tax and targets customers who are vulnerable to harm, including the self-excluded.”

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Kenya influencer ban “hypocrisy rather than regulation”

Content creators in Kenya have hit back at a ban on the use of influencers in gambling advertising, citing the economic consequences of the new regulation.

Following a 30-day ad blackout implemented on 29 April, Kenya’s Betting Control and Licensing Board (BCLB) published an extensive list of rules that operators must follow, including refraining from using celebrities, influencers and content creators to endorse or promote gambling.

In response to the ban, a group of content creators issued an ultimatum to the BCLB, demanding a rethink of the regulation.

Advocate Hansen Omido told reporters that given social media’s prominence in modern-day advertising, marketing by influencers “needs to be responsibly managed and not completely abolished”.

“A blanket ban cannot be the solution. It is a blow to the creative economy and to the thousands of young people whose livelihoods depend on producing digital content,” Omido added.

Alongside a ban on the use of influencers and celebrities, all proposed adverts must be approved by the BCLB before publication and also classified by the Kenya Film Classification Board (KFCB).

The advertising practices of operators will also be subjected to regular audits by the BCLB and the KFCB, as well as by Kenya’s Media Council, Communications Authority and the Directorate of Criminal Investigations.

Social media influencer ‘YY Comedian’ described the decision as hypocritical and unfair, noting that influencers have been targeted while the mainstream media is still allowed to promote betting.

“If the goal is to regulate and help the youth, why target one segment only?” he questioned. “This looks more like hypocrisy than regulation, and we are ready to engage in conversatout responsible oversight, but not at the expense of fairness.”

Sports journalist Erick Njiru also noted that many of Kenya’s sports teams are sponsored by betting firms, meaning that the players are associated with gambling operators.

He said: “The players themselves are celebrities and their association with betting is a significant part of the sports ecosystem. Let us sit down and discuss how we can regulate this industry responsibly, just like alcohol and cigarette advertising, which is done within safe hours and with proper restrictions.”

Despite issuing a 48-hour ultimatum on 4 June, the Kenyan government or BCLB has yet to respond to the content creators’ concerns.

The clampdown on advertising, particularly focused on protecting youth from exposure to gambling, comes into place as Kenya continues to stand out as a market with large betting engagement.

Last week, a GeoPoll study revealed that the country had the largest betting engagement among markets in Africa, with 82.81% of respondents from Kenya having engaged with gambling products previously.

The figure underpins both the potential of the market and the tricky regulatory questions that the BCLB are being forced to contend with as the sector continues to grow.

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Belgian regulator finds 30% of young people using illegal sportsbooks

A recent report commissioned by the Belgian Gambling Commission (Kansspelcommissie) has revealed alarming gambling habits of young people in the country.

Looking specifically at those aged 18 to 30, the report, conducted by DataSynergy, suggests that over 25% of this group use illegal gambling websites.

Meanwhile, when considering both sports betting and games of chance, 28% of participants used illegal websites, with 8% exclusively using illegal websites and 19% using a combination of both legal and illegal platforms.

Illegal becoming ordinary
For sports betting, 30% of users played via illegal websites, whilst for games of chance, 22% of users played via illegal websites.

Meanwhile, three illegal websites are amongst the top 1011 most-used gambling sites in the country, and despite the increased minimum age for gambling to 21, one in five 18 to 20-year-olds use such platforms.

The study also confirmed that around a quarter 18- to 30-year-olds can spontaneously name at least one illegal gambling website, whilst 9% spontaneously name only illegal websites, and 16% name both legal and illegal ones.

Legislation changes
The study was conducted after a new ruling came into effect in July 2023, which imposed strict restrictions on gambling advertising in Belgium, as well as a change in September 2024, which increased the minimum age for gambling from 18 to 21 years.

Although the participation rate is lower than in 2023 (39% compared to 51%), gambling among 18 to 20-year-olds still occurs. The restrictions seem to have had a mixed effect on brand awareness, whilst illegal gambling remains a pervasive issue in the country.

Regulatory bodies in charge of market surveillance are now however maintaining increased scrutiny over new forms of betting and gambling.

Similar to England’s upcoming Premier League sponsorship ban, it is important to note that the Kansspelcommissie also announced this year that sports clubs must only accept deals with companies that do not operate gambling.

They can however still use the logo or brand name of gaming operators in some form or another, therefore the relationship between legal betting brands and sports remains close in the country.

Black market betting on the rise
Stake has been cited as one of the most widely used offshore websites in the country, being in the top 10 list without holding an active licence.

The regulator is particularly concerned about the rate of consumer awareness with Stake having doubled from 2% in 2023 to 4% in 2025. Sitting alongside these brands are 1Xbet and 22bet, Parions Sport, Winamax and Pinnacle, to name a few.

It was just last week that Belgium’s Association of Gaming Operators (BAGO) revealed that 25% of customers are on the offshore gaming market. The organisation also highlighted that 47% of all players that have self-excluded have started gambling again, this time through unlicensed channels.

Tom De Clercq, Chairman of BAGO, said at the time: “We are on a sloping plane. While licensed gambling sites are subject to strict rules, investing in responsible gaming and actively protecting players, illegal operators are given free rein.

“And that has consequences: more and more people, especially young people and vulnerable target groups, end up in an illegal circuit without rules, without control and without protection. If we do nothing, Belgium is in danger of losing control of its gambling market.”

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Estonia sets path to lower remote gambling taxes by 2028 

Estonia is set to review its gambling tax framework by 2028, as part of reforms outlined in the newly signed coalition pact between the ruling Reform Party and its majority partner Eesti 200.

The coalition, which has governed since 2023 under Prime Minister Kaja Kallas, will push forward changes from 2025 onwards, aimed at strengthening national security, reforming social protections, and accelerating the transition to climate neutrality.

Gambling reforms are firmly on the fiscal agenda, as the coalition will review its tax agreement of 2024, which reclassified remote gambling levies under the Excise Duty Act and aligned the country’s framework with broader EU compliance standards.

Estonia’s 2024 tax reform saw the Remote Gambling Tax on games of chance increased from 5% to 6% of net bets, alongside similar hikes to the Game of Chance Tournament Tax, Toto Tax, and Lottery Tax — with the latter rising sharply from 18% to 22% on ticket sales.

According to published articles, the government will “initiate the amendment of the Remote Gambling Tax Act in parliament to find additional funding for sports and culture. We will reduce the annual tax rate by 0.5% and reach 4% by the year 2028.”

As such, a ‘dedicated national fund’ will be created to finance major sports infrastructure, using proceeds from online gambling. Projects will be selected in line with priorities set by the Estonian Olympic Committee, ensuring funds are channelled into nationally significant venues.

“Amendments to the Remote Gambling Tax Act will be initiated in parliament to find additional funding for sport and culture,” the agreement states.

A second fund is to be launched to incentivise private-sector co-financing of culture and sport. Here, 20% of new gambling tax revenues will be earmarked for matched donations, following a model where the state covers one-third and corporate sponsors the remaining two-thirds. Only non-profits listed as tax-exempt will qualify.

“To attract private funding for the cultural and sports sectors, we will create a private fundraising fund by amending the Gambling Tax Act and directing 20% of the additional revenue into this new fund.

“We will use a principle where one-third of financial contributions come from the state and two-thirds from companies, in the case of donations. Support will be based on organisations listed as tax-exempt non-profits and foundations.”

This renewed policy push builds on Prime Minister Kallas’s 2024 intervention, in which her government enacted strict advertising laws to curb the visibility of gambling.

Measures included broad bans on celebrity endorsements, inducements such as “risk-free” bets, and marketing targeted at underage audiences. Enforcement was handed to Estonia’s Consumer Protection and Technical Regulatory Authority (TTJA).

At the start of the year, the Ministry of Finance detailed that it would hear feedback on applying a new tax framework for Estonian gambling. However the Reform Party maintains that it will grant no audience on advertising restrictions.

Estonia’s liberal coalition is betting that the industry can remain commercially viable while being repositioned as a contributor to public welfare — not just government coffers.

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NCAA and Signify release gambling abuse data for March Madness

The NCAA teamed up with Signify to study online abuse sparked by sports betting.

Signify and the NCAA used the 2025 men’s and women’s basketball tournaments to identify and study targeted online abuse directed at student-athletes, coaches, officials and committee members. Signify leveraged its Threat Matrix artificial intelligence service to monitor public comments directed at the social media accounts of 2,032 players and 346 coaches. Signify also monitored 136 teams and 269 officials and committee members.

“One of the first things student-athletes told me when I became NCAA president was that they were being harassed online by people who are following or betting on their games,” said NCAA President Charlie Baker. “From day one, it’s been a priority to study this issue, monitor the public interactions, protect student-athletes and allow them to focus on being students and competing at the highest level on the court with their teammates.”

Signify and the NCAA analyzed more than 1 mi..

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For fans and for athletes, we need to talk more about bettors harrassing players

Matthew Wein is a former government security official who worked at DHS and the U.S. Committee on Homeland Security. He now writes the Secure Stakes Substack Newsletter and owns Wein Security Lab consulting.

At the end of May Olympic Gold Medal sprinter Gabby Thomas was heckled and harassed at a track meet by a man who had bet against her. Following her exit at the French Open, Jessica Pegula detailed the threats she receives via social media from gamblers. Earlier this spring, Houston Astros pitcher Lance McCullers and his family were on the receiving end of death threats from what turned out to be a drunken gambler who lost his wager. Liam Hendrinks also received death threats via social media connected to his play this season.

More and more athletes are starting to go on the record saying that there is a correlation between sports gambling and the threats they receive. To borrow a phrase from the national security world—it seems the lights on the alarm are all blinking red right ..

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