Brazilian Lawmakers Prepare an Inquiry into Links Between iGaming and Crime

The Brazilian Senate announced its plans to launch an inquiry into online gambling in order to address crime-related concerns. The inquiry will be led by a parliamentary commission of 18 members who will have 130 days to complete it.

Senator Thronicke Asked Lawmakers to Not Turn a Blind Eye to the Problem

The inquiry comes ahead of the launch of Brazil’s regulated sports betting and online gaming market. Set to launch on January 1, the regulated market will mark a new chapter for gambling in the LATAM country.

However, certain lawmakers have been concerned by potential instances of fraud and gambling harm that the proliferation of gaming could cause. A recent money laundering scandal, for example, prompted the Senate to initiate a probe into the matter and examine possible connections between iGaming and organized crime.

 Senator Soraya Thronicke, a representative of Podemos Party, urged lawmakers to not turn a blind eye to the fact that gambling tends to have ties to crime.

Thornicke added that she suspects that certain iGaming operators have rigged their software for profitability.

Lawmakers Supported the Inquiry

The inquiry will be led by 11 full and 7 rotating members and will have a budget of approximately $20,000. In addition to seeking potential links between online gambling, money laundering and organized crime, the inquiry will also take a look at the role of online influencers who are complicit in such schemes.

For reference, Deolane Bezerra, a prominent online influencer, was arrested last month on suspicions of involvement in money laundering.

Senator Dr Hiran Gonçalves emphasized that many online operators operated beyond the scope of Brazil’s Central Bank. Since some companies are based in tax havens and do business with crypto, identifying fraud has become increasingly hard. Because of that, Gonçalves backed the inquiry, saying that it would be the key to protecting Brazilians from harm and fraud.

Another major backer of the inquiry was the government’s leader in the chamber, Senator Randolfe Rodrigues. The latter praised the initiative and described iGaming as a major social and public health problem, and economic issue.

Rodrigues added that lawmakers should also consider measures that restrict gambling ads.