Responsible gambling: challenges for bookmakers in Brazil and lessons from international experience
Over the last few years, one of the major concerns raised in debates about the opening of the gaming and betting market in Brazil has revolved around the negative effects that this activity could have on people and families. Much has been said, for example, about the risk of excessive engagement or involvement of potentially vulnerable groups, such as minors, the elderly and people with behavioral disorders associated with gambling.
On October 27, the Ministry of Finance took an important step in tackling this problem: in the long-awaited Normative Ordinance No. 1,330, of 2023, which establishes the general conditions for commercial exploitation of the lottery modality of fixed-odd betting in Brazil, the requirement that bookmakers create a “responsible gaming” policy.
For those who work in this industry, this requirement sounds natural and even basic, especially because it is present in several countries around the world. But, for the vast majority of people, some doubts still persist: after all, what is “responsible gambling”? How does it manifest itself in practice? What can be demanded from bookmakers that intend to operate in Brazil?
A good starting point for understanding the subject is the concept itself proposed by Ordinance MF No. 1,330, of 2023: according to art. 14, responsible gambling consists of the set of “measures, guidelines and practices to be adopted to prevent compulsive or pathological gambling disorder, to prevent and not induce debt and to protect vulnerable people, especially minors and the elderly.”
Although the concept brought by the ordinance does not differ from what is seen in other countries, it is necessary to highlight that Brazil’s culture and legal system have their own peculiarities – starting with the protection system established by the Consumer Protection Code.
In practice, this allows us to foresee the need for much greater care on the part of bookmakers in formatting and detailing their responsible gaming policies and procedures in Brazil than is seen in other countries. Therefore, it is necessary to go beyond the normative concept: we must seek the essence and logic that guides this institute, identify international standards of responsible gambling and adapt them to the Brazilian reality.
The international experience of this industry shows us that, conceptually, “responsible gaming” is something much bigger than just “non-problematic gaming”. The logic that guides legislators, and even self-regulatory entities in major world centers, is that gaming and betting must be practiced for fun and entertainment, consciously, and not out of necessity.
From this perspective, any factor that leads a person to play or bet out of ignorance (e.g. without knowledge of the risk of loss or because they think it is a source of income), out of real need (e.g. financial problem) or psychic need (e.g. addiction or search for status) needs to be the object of attention and effective measures. The essential core of any responsible gambling program, therefore, is prevention.
Given this, the gaming and betting industry has gradually consolidated some responsible gaming standards, including with the collaboration of private entities. Among others, see, for example, the “Safer Gambling” program, developed by the Gambling Commission, in the United Kingdom, and the “Responsible Internet Gambling Standards”, proposed by the National Council on Problem Gambling, an entity established in the United States.
Although the presentation system and nomenclature vary according to the legal reality of each country and the criteria adopted by each body or entity, it is possible to group these standards into five pillars: (i) corporate policy; (ii) advertising and publicity; (iii) awareness and clarification of bettors; (iv) bettor protection mechanisms; and (v) assistance and referral of bettors.
The “corporate policy” pillar concerns the requirement for a declaration of purposes and the bookmaker’s commitment to responsible gambling itself. Naturally, speech is not enough: there must be a detailed description of guidelines, principles, rules, procedures and, also, a minimally precise indication of the internal structure, resources and training that will be implemented by the bookmaker.
The “advertising” pillar concerns all the precautions that must be observed when promoting betting services. This involves defining rules and conditions relating not only to locations, channels and times of broadcasting of communication pieces, but also to the language to be used and the alerts that must accompany this dissemination action.
In turn, the “awareness and clarification” pillar comprises measures aimed at ensuring that bettors are aware of the dynamics of the game or bet and its risks. This involves, among other measures, the production of documents and the creation of a customer service that is capable of adequately informing about the rules for using the platform or application used, the risks of financial loss from this activity.
Interesting alternatives are the creation of knowledge tests about the rules and risks of the game and the bet, as well as the creation of a kind of score or “thermometer” through which the player himself can assess how much his habits may indicate a possible gambling addiction.
No less important, the pillar “protection mechanisms for bettors” involves the requirement to design a series of features designed to prevent the practice of betting by those legally prevented (e.g.: minors) and vulnerable people (e.g.: gambling addicts, the over-indebted and, eventually, the elderly), as well as the abuses and excesses of betting.
The features that can be configured by bettors themselves are known worldwide, such as pause and self-exclusion mechanisms, as well as limiting losses, the number of bets or even the time spent using the electronic platform. But, increasingly, compliance with this pillar is also demanding a more active stance from the bookmaker. Not only because some gamblers may declare a false identity, but also because experience shows us that many of them do not see themselves as addicts or, through unconscious mechanisms, have the false feeling that they always have total control over their actions – and that is why they believe that they don’t need to limit themselves.
Still in this pillar, it is highly recommended to implement ex ante features, such as the prior qualification of the bettor through “know your customer” procedures – which necessarily involves checking the legitimacy of the information. In the case of Brazil, where the betting culture is relatively recent, it may be especially recommended to apply suitability questionnaires (to collect more objective parameters about the person’s profile and income range, for example) and the creation of betting routines. artificial intelligence that, based on this information, triggers automatic preventive locks, in order to increase the level of protection for bettors.
Finally, the “assistance and referral for bettors” pillar comprises the mechanisms through which the bettor can request and receive qualified professional help. Some classic tools are full-time telephone assistance services and also the indication of names and contact details of specialized centers for research and treatment of gambling disorders.
These, of course, are some initial reflections that require attention from bookmakers. There is much more to be explored and sought after. In any case, one thing is certain: “responsible gambling” cannot and should not be seen by betting houses that intend to operate in Brazil as an expression of a “politically correct” stance. A minimum of familiarity with judicial practice shows us that, given the admittedly paternalistic jurisprudence of our Courts, the conception of a responsible gaming policy is, above all, a powerful risk prevention instrument.
Fabiano Jantalia
Founding partner of Jantalia Advogados. Doctor and master in Law (UnB). MBA in Finance (FGV). Lawyer specializing in Economic Law and Gaming Law.
Source: GMB Exclusive