Brazilians spend up to BRL 30 billion a month on online gambling
The regulation of online gambling in Brazil has not inhibited Brazilians’ interest in it. From January to March, gamblers spent up to BRL 30 billion a month, the executive secretary of the country’s Central Bank, Rogério Lucca, said Tuesday (Apr. 8).
He and the financial institution’s president, Gabriel Galípolo, spoke to a Senate investigative committee on the topic, which seeks to gauge the impact of online gambling on the budget of Brazilian families and on the financial system, as well as its possible association with criminal organizations.
Last year, Lucca noted, when this market was not yet regulated, the Central Bank had estimated that some BRL 20 billion a month was spent on online gambling. When the data were updated after the regulation, which came into force on January 1, the figure was slightly higher—BRL 20 billion to 30 billion.
Almost the entire amount spent is distributed to the winners, but figures differ. According to the National Treasury, a 93 to 94 percent payout ratio goes to gamblers as prize. In a preliminary report from last year, the Central Bank had calculated 85 percent.
Limited inspection authority
The Central Bank president said that the institution can only compile statistics and does not have the authority to inspect, supervise, or apply sanctions—like blocking transactions from betting services not licensed to operate in Brazil.
“Once notified, the Central Bank, replies to the [Treasury], ‘These are the companies with procedures you should monitor and suspend from now on.’ It’s not the Central Bank’s job to block a transaction,” he affirmed.
The Central Bank’s work regarding online gambling, Galípolo added, is limited to preventing money laundering and combating terrorism. In these cases, financial institutions must notify the Central Bank, which then reports the suspicious operations to further law enforcement agencies.
