FROM REGULATION TO PROTECTION: ENHANCING PLAYER SAFETY IN BRAZIL’S BETTING LANDSCAPE

The regulation of fixed-odds bets in Brazil marks a pivotal shift in the country’s legal approach to the gaming industry. Federal Law No. 13,756/2018, Federal Law 14,790/2023 and the regulatory framework has framed gaming not merely as a private activity, but as a regulated service with implications of public interest.

As of now, the Secretariat for Prizes and Betting (Secretaria de Prêmios e Apostas – SPA) has issued a comprehensive set of ordinances to regulate the market. This framework encompasses includes authorisation procedures, operational rules, AML measures, certifications, and responsible gambling policies. Notably, Ordinance SPA/MF No. 1,231/2024,¹Available here: https://www.in.gov.br/en/web/dou/-/portaria-spa/mf-n-1.231-de-31-de-julho-de-2024-575670297 establishes guidelines for responsible gambling practices and outlines the rights and duties of bettors and operators in the commercial operation of fixed-odds lottery betting. Additionally, Ordinance SPA/MF No. 1,225/2024,²Available here: https://www.in.gov.br/en/web/dou/-/portaria-spa/mf-n-1.225-de-31-de-julho-de-2024-575691787 regulates the monitoring and supervision of betting activities and operators, further reinforcing player protection measures. These ordinances demonstrate Brazil’s commitment to creating a robust regulatory environment for the betting industry, aligning with international best practices to ensure market integrity and consumer safety.

Central to this framework is the principle of responsible gambling, aimed at minimising harm, especially among vulnerable individuals.

It is essential that not only regulatory entities, but also administrative and judicial courts thoroughly assimilate responsible gaming rules and player protection. They will play a crucial role in resolving disputes involving player losses, operator conduct, and compliance with consumer protection mandates. However, courts may face challenges when interpreting these norms due to the technical and behavioural complexities involved.

In UK, for instance, the legal framework governing gambling activities has evolved to prioritise consumer protection, particularly concerning responsible gambling practices. The Gambling Act 2005³See: Gambling Act 2005, c. 19 serves as the cornerstone of this framework, establishing the Gambling Commission as the primary regulatory authority. The Commission’s Licence Conditions and Codes of Practice (LCCP)⁴See: UK Gambling Commission, Licence Conditions and Codes of Practice (LCCP). Available at: https://www.gamblingcommission.gov.uk/licensees-and-businesses/lccp impose obligations on operators to implement measures that promote responsible gambling and protect vulnerable individuals.

A fundamental aspect of this framework is the duty imposed on operators to identify and interact with customers, exhibiting signs of problematic gambling behaviour.

This includes the implementation of self-exclusion programs, affordability checks, and the provision of tools that allow customers to set limits on their gambling activities. The Commission’s guidance emphasises that operators must act in a socially responsible manner, ensuring that marketing practices do not exploit vulnerable individuals.

In Brazil, SPA issued Ordinance No 1,231/2024, which outlines guidelines for operators regarding responsible gaming and player protection. These guidelines emphasise the importance of implementing tools to identify at-risk players, as well as establishing protocols for self-exclusion and affordability assessments. Another piece of evidence that Brazil has drawn lessons from mature markets in the law-forming process is using their regulatory framework as a model to shape its own standards.

Concerning self-exclusion rules, Ordinance No. 1,231/2024 establishes directives for the implementation of self-exclusion programs by operators. Notably, they are required to provide mechanisms that allow players to self-exclude for predetermined periods or indefinitely. These tools must be easily accessible and prominently displayed on the platform. Additionally, operators must inform players about the availability of self-exclusion and to provide clear instructions on how to utilise it.

As Brazil’s legal framework is still in its early stages, it currently lacks robust judicial precedents regarding responsible gambling or player protection mechanisms in practice. However, the potential for future case law will be vital in shaping how these regulations are interpreted. The adoption of clear regulatory obligations, as outlined by the SPA, will help balance consumer autonomy with the necessary protection for vulnerable individuals, aiming to prevent gambling-related harm.

Operators in Brazil bear significant responsibility in the self-exclusion process. They must implement systems to identify players who may need to self-exclude, particularly those exhibiting signs of problematic gambling behaviour. Furthermore, staff members of the operators and AI tools should be well-trained to recognise risky behaviours and to assist players who wish to self-exclude. This proactive approach aims to foster a safer gaming environment and to support players in making informed decisions about their gambling activities.

Self-exclusion is a critical component of player protection, helping to prevent gambling addiction and associated harms. Operators are also expected to provide access to additional resources, such as support services and counselling for players struggling with gambling problems. Continuous monitoring and evaluation of the effectiveness of self-exclusion policies are essential to ensure that these measures meet the needs of vulnerable players.

Comparatively, examining how Brazil’s self-exclusion rules align with international standards, particularly in countries like the United Kingdom, provides valuable context for the evolution of Brazilian regulations. In the UK, the Gambling Commission mandates clear requirements for self-exclusion, including the obligation for operators to offer robust player protection programs. By learning from international best practices, Brazil can enhance its regulatory framework to better protect players and promote responsible gambling.

Specifically analysing the movements of the courts in the UK, judicial interpretations have further clarified the extent of operators’ responsibilities. For example, in Calvert v William Hill Credit Ltd [2008],⁵See: Calvert v William Hill Credit Ltd [2008] EWHC 454 (Ch). Available at: http://www.bailii.org/ew/cases/EWHC/Ch/2008/454.html the High Court examined whether a bookmaker owed a duty of care to a customer who had requested self-exclusion but was still allowed to place bets. The court concluded that while there was no general duty to prevent gambling-related harm, a limited duty arose once the operator voluntarily accepted the self-exclusion request. However, the claim failed due to issues of causation, as the claimant continued to gamble with other operators.

More recently, in Gibson v TSE Malta LP (t/a Betfair) [2024],⁶See: Gibson v TSE Malta LP (t/a Betfair) [2024] EWHC 2900 (Comm). Summary available at: https://www.woodswhur.co.uk/landmark-high-court-case-rules-against-gambler-seeking-repayment- of-losses/ the High Court reaffirmed that operators do not owe a general duty of care to customers under common law. The court held that unless an operator assumes responsibility, such as through a self-exclusion agreement, there is no obligation to prevent a customer from gambling. This decision underscores the importance of operators adhering to regulatory requirements and the limitations of legal recourse for consumers absent a breach of specific duties.

These cases illustrate the balance the UK legal system seeks to maintain between consumer autonomy and the protection of vulnerable individuals. While operators are expected to implement robust responsible gambling measures, the courts have been cautious in imposing broad duties of care, emphasising the need for clear regulatory obligations and the assumption of responsibility by operators.

Judicial Challenges, Interpretive Gaps, and Mechanisms of Legal Relevance

As the gambling landscape in Brazil continues to evolve, administrative and judicial courts have been increasingly confronted with diverse types of cases, many of them involving players seeking restitution after engaging in excessive or compulsive gambling. These cases revolve around core legal questions that probe the intersection between individual autonomy and operator responsibility. Based on this, key issues that emerge include:

1. Was the operator negligent in preventing foreseeable harm? This question addresses whether the gambling operator took adequate measures to protect players from potential harm resulting from excessive gambling behaviour. According to SPA guidelines, operators are required to implement effective responsible gambling tools, such as self-exclusion mechanisms, affordability checks, and player monitoring systems.
2. Did the player voluntarily override protective tools? In many instances, players may have had access to self-exclusion or limit-setting features but chose not to utilise them. Courts must assess whether the players’ decisions to engage in gambling activities, despite available protections, imply a waiver of their right to claim restitution.

iii. Are self-imposed limits legally binding? This question raises whether limits set by players on their gambling activities should be recognised and enforced by operators. If a player sets a limit and then surpasses it, should they still hold the operator accountable for their losses? These questions necessitate a nuanced analysis of the contractual obligations between players and operators.

These legal challenges require courts to carefully weigh individual autonomy against the responsibilities of operators, often in the absence of clear precedents on the matter. As the regulatory framework for gambling continues to develop, judges are navigating uncharted territory, and many may be unfamiliar with the operational and psychological dimensions of gambling systems. This knowledge gap complicates the assessment of whether operators have complied with regulatory requirements and whether they have fulfilled their duty of care to players.

In this context, responsible gambling tools, such as self-exclusion and limit-setting mechanisms, are not merely ethical features; they are legally mandated controls designed to protect players from the risks associated with gambling. The proper implementation and enforcement of these mechanisms are critical to ensuring player safety and well-being.

When making judicial or administrative decisions, it is crucial that courts consider the full range of obligations imposed on operators, as well as the various mechanisms available for player protection. Judges and regulators must be well-informed about these tools to ensure that their decisions are fair and proportionate. If courts do not consider the comprehensive framework of responsible gambling measures, their rulings may be unreasonable and disproportionate, failing to reflect the intent of the regulatory body overseeing the sector.

Moreover, courts must be vigilant in assessing whether operators acted on risk signals detected by automated systems. If an operator fails to intervene when a player exhibits signs of problematic behaviours – such as repeated high stakes or extended periods of play – the operator may be viewed as breaching their duty to protect the player.

Failing to consider the full spectrum of regulatory requirements and responsible gambling tools available can lead to judicial outcomes that do not align with regulatory intent. It is imperative that decisions reflect a comprehensive understanding of these mechanisms to avoid unjust outcomes that could undermine the protections intended by the regulator.

In summary, the legal landscape surrounding gambling is laden with challenges that require careful navigation. As players seek justice for the harm caused by excessive gambling, courts must grapple with complex questions of duty, responsibility, and the effectiveness of protective measures. The outcomes of these cases will likely shape not only the legal framework for gambling in Brazil but also the broader understanding of responsible gambling practices in an increasingly digital world.

To ensure a coherent application of responsible gambling norms in Brazil, it is essential to invest in the education of the courts. The complex and novel nature of gambling regulation, combined with the psychological dimensions of gambling behaviour, necessitates a well-informed judiciary capable of making decisions that uphold both legal mandates and public health goals. Several strategic initiatives can be implemented to enhance the understanding of judges and court officials regarding gambling regulation and its implications.

One of the most effective ways to improve judicial understanding of gambling issues is through specialised training programs focused on gambling regulation and behavioural risk. These programs should be designed to equip judges with knowledge about the various aspects of gambling, including the legal framework, the risks associated with gambling behaviour, and the responsibilities of operators to protect players. By fostering a deeper understanding of these issues, courts can make more informed decisions that balance individual autonomy with operator accountability.

As an example, many countries have successfully implemented similar judicial training programs:

• United Kingdom: The Judicial College offers continuous training for judges, including courses on gambling regulation and consumer protection. This helps judges understand the implications of gambling laws and manage related cases effectively. ⁷See: Judicial College. (n.d.). Training and Development.
• Australia: Various jurisdictions in Australia have initiated training programs focusing on gambling issues, including the impact of problem gambling on society. These workshops, developed in collaboration with governmental and academic institutions, aim to enhance judges’ understanding of gambling dynamics.⁸See: Australian Institute of Judicial Administration. (n.d.). Resources and Publications
• Canada: The National Judicial Institute in Canada provides training on a range of topics, including gambling and legal implications. Judges can participate in seminars and workshops addressing gambling regulation and consumer protection.⁹See: National Judicial Institute. (n.d.). Educational Programming.
• United States: In several states, judicial training programs address gambling law, particularly in states where gambling plays a significant economic role. These programs deliver insights into state gambling laws and the importance of consumer protection.¹⁰See: National Center for State Courts. (n.d.). Judicial Education
• New Zealand: New Zealand has implemented training programs for judges that include modules on gambling regulation and consumer protection, ensuring that judges are well-informed about legal and social issues related to gambling.¹¹See: New Zealand Law Society. (n.d.). Continuing Legal Education.

The development of technical guidelines or manuals by SPA could serve as valuable resources for the courts and other controlling entities involved in the decision-making process. These guidelines should outline the legal obligations of gambling operators, the available responsible gambling mechanisms, and best practices for assessing compliance. By providing courts with clear and accessible information, these guides will enhance the consistency and coherence of judicial decisions concerning gambling cases.

Another effective approach would be to incorporate expert testimony from psychologists and compliance specialists into court proceedings to enrich the judicial process. This is something that other jurisdictions have already implemented since experts can offer insights into the psychological aspects of gambling behaviour, including factors that contribute to compulsive gambling and the effectiveness of various responsible gambling measures. Their input can help judges understand the nuances of gambling-related cases, leading to more equitable and informed rulings.

Encouraging participation of all those involved in the decision-making process (such as judges, administrative courts staff and regulatory agencies) in regulatory dialogues alongside industry stakeholders and academic experts is another vital step toward enhancing judicial education. These dialogues can facilitate knowledge exchange, allowing judges to engage with the latest research, trends, and challenges in the gambling sector. By fostering collaboration between the judiciary, regulatory bodies, and industry representatives, Brazil can promote a more comprehensive understanding of gambling regulation and its impact on public health.

In line with enhancing judicial education, SPA has recently unveiled its regulatory agenda for the biennium 2025-2026.¹²Available at: https://www.gov.br/fazenda/pt-br/assuntos/noticias/2025/abril/spa-lanca-agenda-regulatoria-para-o-bienio-2025-2026 This agenda aims to develop and refine regulations that govern various aspects of gambling, aligning them with responsible gambling practices and public health objectives. As part of this public hearing process¹³More information at: https://www.gov.br/fazenda/pt-br/assuntos/noticias/2025/fevereiro/secretaria-de-premios-e-apostas-ouve-sugestoes-sobre-agenda-regulatoria-2025-2026, the SPA has actively sought suggestions from stakeholders to ensure that the regulatory framework is comprehensive and effective.

Furthermore, the SPA launched a public consultation regarding the second phase of its regulatory agenda, which is set to include measures that will directly impact how gambling is regulated in Brazil. This initiative underscores the importance of a collaborative approach that incorporates diverse perspectives from industry, academia, and the public. By engaging in these dialogues, the judiciary can better understand the regulatory landscape and the evolving standards that govern responsible gambling.

As Brazil moves forward in regulating betting, it is imperative that the education of the courts becomes a strategic priority to ensure player protection. Integrating responsible gambling norms is not merely about establishing regulations; it is a continuous commitment to promoting player safety and maintaining the integrity of the betting market. Through judicial training programs, the development of technical guidelines, and the inclusion of expert testimony, the judiciary can become better equipped to effectively interpret and apply player protection norms.

For the transition from a purely regulatory approach to one focused on player protection to be successful, it is essential for all parties involved in the decision-making process to collaborate. This collaboration will facilitate knowledge exchange and enable the judiciary to better understand the dynamics of gambling, fostering a culture of responsibility within the sector.

Thus, by aligning their decisions with public health objectives and consumer protection, the Brazilian judiciary can play a crucial role in the evolution of the betting landscape in the country. Establishing a regulatory framework that prioritises player safety will not only strengthen trust in the sector but also ensure that the well-being of bettors remains a top priority.