As sports betting addiction takes hold in Brazil, the government moves to crack down

SAO PAULO -- SAO PAULO (AP) — “King” doesn’t disclose his existent name. Even clients of his Sao Paulo newsstand person to telephone him by his moniker. The Brazilian online sports gambling addict lowered his floor plan aft a indebtedness shark threatened to put bullets successful his caput if he didn’t salary up.

Broke and embarrassed, King sought curen and support earlier this year.

“I was erstwhile addicted to slot machines, but past sports betting was truthful easy that I changed. I sewage carried distant each nan time," he told The Associated Press.

King’s communicative is that of galore susceptible Brazilians successful caller years. The state has go nan third-biggest marketplace successful nan world for sports betting, pursuing nan U.S. and nan U.K., a study by information study institution Comscore said past year. But dissimilar those countries, rampant advertizing and sponsorship person been coupled pinch an unregulated market. The authorities is now — belatedly, immoderate opportunity — striving to get a grip connected nan epidemic.

On a caller evening, King's Gamblers Anonymous gathering took spot successful an improvised schoolroom wrong a church, pinch java and cookies to support everyone awake, and supportive messages scrawled onto nan blackboard. One that's go ubiquitous successful Brazil and beyond: “Only for coming I will debar nan first bet.”

King and different attendees, each Christian, started a dream and nan gathering began.

King said his financial problems arose from his addiction to online sports betting, chiefly connected soccer.

“I miss nan adrenaline unreserved erstwhile I don’t bet," he said earlier nan gathering. "I person managed to extremity for a mates of months, but I cognize that if I do it erstwhile again, moreover a mini bet, it will each travel back.”

The COVID-19 pandemic was a cardinal driver for Brazilians embracing sports betting. King said he transformed almost each waste during that clip into a bet. His hook was nan non-stop advertizing connected TV, radio, societal media arsenic good arsenic sponsorship of section shot teams' jerseys. He asked for slope loans to salary his gambling debts and then, to screen those, went to nan moneylender. His full indebtedness now amounts to 85,000 reais ($15,000) — intolerable to salary disconnected pinch his monthly income of 8,000 reais.

Digging oneself retired of indebtedness successful Brazil is particularly daunting pinch its sky-high liking rates. Loans from Brazilian banks could adhd liking of almost 8% per period to nan borrowed sum, and from indebtedness sharks could beryllium moreover more.

Four Gamblers Anonymous meetings attended by nan AP successful October featured discussions astir difficulties paying down debts, forcing working-class members to postpone lodging payments and cancel family vacations.

Some members of impoverished Brazilian families person utilized use money for betting alternatively of paying for groceries and housing, charismatic information suggests. In August, beneficiaries of Brazil’s flagship programme Bolsa Familia spent 3 cardinal reais ($530 million) connected sports betting, according to a study from nan cardinal bank. That was much than 20% of nan program’s full outlay successful nan month.

Sports betting was made ineligible successful 2018 successful a measure signed by erstwhile President Michel Temer. The consequent turmoil has precocious been mounting disconnected siren bells, pinch addicts venting connected societal media and media reports of group losing immense sums.

On Oct. 1, nan system ministry prevented much than 2,000 betting companies from operating successful Brazil for having grounded to supply each nan required documents. Soccer-loving President Luiz Inácio Lula da Silva said successful an question and reply connected Oct. 17 that he will unopen down nan full marketplace successful Brazil if his administration’s caller regulations — presented astatine nan extremity of July— neglect to work. And Brazil’s Senate connected Oct. 25 opened an investigation into betting companies, focusing connected crime and addiction.

“There’s taxation evasion, money laundering of organized crime, nan usage of influencers to instrumentality group into betting. These companies request to beryllium audited,” Sen. Soraya Thronicke, who projected nan inquiry, told journalists successful Brasilia.

Sérgio Peixoto, a ride-sharing app driver successful Rio, is 1 of galore lower-middle-income Brazilians who person reduced their spending owed to sports betting debt. Peixoto’s indebtedness presently amounts to 25,000 reais ($4,400). His monthly income is 4 times little than that.

“It stopped being a game, it wasn’t fun. I conscionable wanted to get nan money back, truthful I mislaid moreover more,” said Peixoto, 26. “I could person invested that money. It would surely person fixed maine much benefits.

Pressure connected group to bet is everywhere. Current and erstwhile shot players, including Vinicius Júnior, Ronaldo Nazário and Roberto Rivellino, are among nan poster boys for section and overseas brands. All but 1 of nan top-tier shot clubs person betting companies among their main sponsors, pinch their sanction and logo emblazoned connected their kits. There person been cases of kids and teenagers mounting up accounts utilizing their parents' individual accusation and money, aggregate section media outlets person reported.

Brazil's system ministry estimates that Brazil's sports betting marketplace had $21 cardinal successful transactions past year, a 71% summation compared pinch nan first twelvemonth of nan pandemic, 2020.

The ministry's recently presented regulations see facial nickname systems for gamblers to bet, nan recognition of a azygous slope relationship for transactions involving sports betting, caller protections against hackers and nan government-authorized domain, bet.br, which will big each betting sites that are ineligible successful Brazil. Once they are successful place, travel January, betwixt 100 and 150 betting companies will proceed to run successful nan South American nation.

The changes successful Brazil person prompted immoderate companies to return preemptive action. A study by Yield Sec, a method intelligence level for online marketplaces, said respective betting companies voluntarily restricted their operations successful different places aft nan latest editions of nan European Championships and Copa America successful nan hopes of presenting “the champion imaginable licence exertion look to nan Brazilian authorities.”

Magnho José Santos de Sousa, nan president of nan Legal Gambling Institute, a betting deliberation tank, said Brazil is presently “invaded by forbidden websites that person licenses successful Malta, Curação, Gibraltar and nan United Kingdom."

De Sousa expressed dream that nan caller regulations for advertising, responsible gambling and qualification of sports betting companies will toggle shape nan country's deregulated arena into a much superior 1 that doesn't utilization nan vulnerable.

"The full cognition could move from h2o into wine,” he said.

Meantime, nan request for Gamblers Anonymous meetings successful Sao Paulo has grown truthful overmuch successful caller years that nan play gathering, successful spot since nan 1990s, was nary longer enough. Many groups person added a 2nd time successful nan week to thief caller group recover, mostly sports bettors.

Earlier successful October, a group connected Sao Paulo's bluish separator admitted a man who was struggling pinch sports betting and paper games. The 13 different group successful nan room stressed that he wasn't alone.

“Welcome,” 1 long-time attendee said, successful a greeting that has go a regular for nan group. “Today, you are nan astir important personification here.”

___

Dumphreys reported from Rio de Janeiro.