Betting Investigation in Brazil Fails to Pass Report

The parliamentary inquiry commission (CPI) on betting in Brazil has abruptly ended, marking the first time in a decade that a CPI’s final report has been rejected by the Senate. Established in November last year to investigate the growing impact of online gambling on Brazilian families’ finances, the commission faced persistent criticism and controversy throughout its brief existence.

Senate President Davi Alcolumbre, who once labeled the betting CPI a “circus,” refused to extend its deadline in December amid allegations of extortion following a high-profile Veja magazine investigation. On Thursday, the CPI’s rapporteur, Senator Soraya Thronicke, saw her final report rejected by a narrow 4-3 Senate vote. This outcome means none of the proposed legislative measures will move forward, deepening uncertainty for the betting industry already under pressure from recent tax increases and advertising restrictions.

 

Key Proposals and Accusations in the CPI Report

Thronicke’s report, presented just days before the vote, recommended indictments for 16 individuals, including well-known digital influencers Virgínia Fonseca and Deolane Bezerra, accusing them of involvement in fraud and illegal gambling activities. The report also proposed 20 bills aimed at curbing gambling-related harms.

Among the key proposals were a ban on the controversial Fortune Tiger game, restrictions on betting by recipients of the social welfare programme CadÚnico, and new criminal penalties for violations of gambling advertising rules and unlicensed online operators. Other suggested measures included limiting daily betting time to three hours and introducing a national self-exclusion scheme for gamblers.

However, some senators, such as Angelo Coronel, voted against the report citing insufficient time to review its contents thoroughly. Coronel stated, “I don’t feel comfortable voting on something I haven’t read.”

 

What is CPI

A CPI (Comissão Parlamentar de Inquérito) is a parliamentary inquiry commission used in Brazil to investigate specific issues or allegations.

It has the power to summon witnesses, request documents, and gather evidence to understand and address public concerns.

CPIs are temporary bodies, set up for a limited time to produce a report with findings and possible recommendations.

 

 

Why the Betting CPI Failed

Criticism of the betting CPI extended beyond its report. Senator Eduardo Gomes expressed broader skepticism about the CPI mechanism itself, calling for reform: “I don’t like CPIs. I think they work incorrectly. An effective change in how they work is needed.”

Over its 21 meetings, the CPI summoned 192 testimonies but heard from only 19 individuals, with six failing to appear. Moreover, only half of the requests for confidential financial data were granted, limiting the commission’s investigative reach.

Senator Eduardo Girão initially opposed the report over the CPI’s conduct but later supported it for its gambling restrictions. He highlighted that none of his eight data requests were approved and referenced earlier extortion allegations. CPI President Dr. Hiran Gonçalves rejected these accusations as “bravado,” demanding specific names be cited if claims were to be made.

In the final stages, Senator Izalci Lucas introduced an alternative report with measures such as a ban on betting advertisements on radio and TV during daytime hours and shared liability between betting companies and digital influencers for abusive advertising damages. Thronicke incorporated parts of Izalci’s proposals into her own report.

Despite this, the Senate chose to vote only on Thronicke’s report, deeming Izalci’s compromised. Senator Gomes criticized the alternative report for potentially exposing confidential financial information.

 

I don’t feel comfortable voting on something I haven’t read.

 

Conclusion

The rejection of the betting CPI report marks a rare and striking setback for parliamentary oversight on gambling in Brazil. The failure to adopt any legislative changes leaves a fragmented regulatory landscape amid increasing government pressure on the betting sector through tax hikes and advertising controls. While Senator Thronicke plans to forward the CPI findings to authorities like the Ministry of Finance and Federal Police, the industry—and Brazilian lawmakers—face ongoing uncertainty over how best to address the growing influence and risks of online gambling.