Brazil’s Central Bank powerless to regulate online gambling firms
The President of Brazil’s Central Bank, Gabriel Galipolo, has said that the bank does not have the legal power to regulate sports betting companies.
President Galipolo testified before the Brazilian Senate’s Investigative Parliamentary Committee on betting, raising his concerns over gamblers’ credit risk profiles and the bank’s lack of power to monitor gambling transactions.
The Central Bank’s role in overseeing Brazil’s financial system is a key part of its operation, but speaking to senators, President Galipolo said it was impossible to regulate or sanction betting operators.
“Our scope of action does not include monitoring or regulating specific operations related to fixed-odds betting, as outlined in the law and its subsequent regulations,” Galipolo said.
Despite the lack of legal powers to oversee the betting sector, the Central Bank has been providing data on its operations.
The Executive Secretary of the Central Bank, Rogerio Lucca, who was also present to testify, said that the monthly volume of betting platform deposits amounted between R$20 and R$30 billion.
“As of this year, from January to March, we’re seeing monthly transaction volumes in the range of R$20 billion to R$30 billion – confirming what we had estimated at the end of last year,” Lucca said.
The Central Bank has also been working with the Secretariat of Prizes and Betting, which is part of the Ministry of Finance, to gather more information on the betting sector. Its investigations have included analyzing the return-to-player rate and the credit rating profile of betting customers.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
