Online sports betting gained popularity in Brazil due to the nation's passion for football, widespread advertising, and the ease of access through mobile apps. Betting sites capitalize on fans' expertise and excitement, offering a wide range of betting options beyond just predicting winners.
The negative impacts include rising debt, gambling addiction, family breakdowns, and financial strain on individuals and the broader economy. People are cutting back on essential expenses like health and education to fund their betting habits.
Online betting was legalized in Brazil in 2018 under President Jair Bolsonaro. Initially, it was allowed to operate without regulation or taxation, leading to a boom in the industry but also a rise in gambling-related problems.
The lack of regulation created a 'wild west' situation where betting sites operated freely without taxes or rules, making it easy for anyone to access them. This led to a massive boom in betting but also increased gambling-related issues like addiction and debt.
The government has started imposing taxes on betting sites, leading to some closures or bans. However, the taxes are not as high as some experts recommend, and the industry still has a strong lobby in Congress, making further regulation challenging.
Gambling is addictive because it activates powerful psychological, neurological, and behavioral mechanisms that reinforce the behavior. The rise of mobile and online gambling has made it more accessible, convenient, and widespread, contributing to a rise in addiction.
Signs of harmful gambling include spending a lot of time thinking about it, skipping social or work commitments, using gambling to cope with stress, and trying to win back lost money. Hiding gambling habits or borrowing money to cover gambling expenses are also warning signs.
Gambling has shifted the focus of watching football from just enjoying the game to worrying about potential winnings or losses. This adds an anxiety factor, making the experience more intense and less about the sport itself.
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Brazil is known for its world-class football, but increasingly another kind of game is gripping the nation: sports betting. The two go hand in hand and some of the country's football royalty like Vinicius Junior and Neymar have also been ambassadors for betting companies that have more than 52 million users in Brazil. Now it's become the third biggest market globally for sports betting and that means that many young Brazilians are struggling with debt and gambling addictions.
So today, you're going to hear how Brazil's passion for football is linked to this nationwide gambling problem and what authorities are trying to do about it. I'm Hannah Gelbart, and you're listening to What in the World from the BBC World Service. Online betting took off in Brazil in 2018 when it was legalised by the president at the time, Jair Bolsonaro. Other types of gambling, like casinos and slot machines, were and still are illegal.
At first, online betting was allowed to go unregulated and untaxed, and it boomed. So here to tell us more about it is Ian Alves, a BBC journalist in Sao Paulo. Hi, Ian. Hello, nice to be here, Hannah. Thank you for having me. It's great to have you on the podcast. Now, for people who don't know, who aren't that familiar with Brazilian culture, what is the relationship like between Brazil and the game? Oh, it's a national passion. Everybody watches football, at least in the World Cup, but
I mean, it's the biggest sport. Every family has a soccer team who they play for. And as well as obviously how popular football is, sports betting is now gaining popularity in Brazil. Why is it getting so big? Well, first, for being a national passion here in Brazil, I think this is a huge part of why sports betting took off so fast.
These betting sites really tap into that passion. Since people follow their team so closely, there's this sense of expertise that makes them feel confident placing bets. So they think, I know this team, I know what's going to happen, and that adds to the excitement of betting. And it's not just about predicting the winner anymore, because you can place a bet on almost anything, like from how many corners there will be or who scores first.
So, naturally, football dominates. We had massive advertisements in the last years. I mean, you can see it on the internet, on television, on public transportation. And of course, the digital aspect of it is also really a different thing on this gambling scenario. If a friend of mine tells me that he's been going to a casino every day, I'll be really concerned. But I actually have a lot of friends that gamble every day or almost every day on betting sites, on their cell phones, and that's just seen as normal.
So yeah, this G-Store aspect is a huge part of it. And I imagine because these are on
on your phone, in your pocket, advertised everywhere. There's games, there's sites that young people in particular are being drawn into placing bets. Oh, of course. Yeah, this massive, this widespread advertising has a huge impact on young people. I think it normalizes gambling and it makes it seem kind of fun, an easy way to make money, especially when so many, you know, influencers and soccer players, even sports commentators and so many celebrities are promoting it.
And for many young people, I think this is no longer seen as risky, but just part of the culture. So that's concerning. What are some of the other effects, the impact on people who are placing these bets? This has been changing our relationship to football. Ten years ago, when I watched football with my friends or my family, we were only talking about the score, the players and what is going to happen on the match.
But now it's really common that people are not just worried with the final score, but also with how much are they going to win or lose with this match. So I think it has been really shifting our relationship to football. If you place a bet on your team winning, you're going to be even more happy when your team wins.
But if you place a bet on your team winning and it loses, you're going to be even more sad. So yeah, that's an anxiety factor as well. We have been covering this here in BBC Brazil in different aspects of the gambling addiction, the gambling problem. I spoke to a man who told me that his wife has left him due to his gambling addiction. And this is what he told me. And just before you hear that, they have been voiced over by a producer. Football used to be my life. I loved football. But now I've taken a step back.
I just can't watch a match without feeling the urge to place a bet. Watching makes me want to log into a betting site, check the odds, and that's the worst for me.
That's what triggers my relapses. I also spoke to a nurse who's 29. At first, I found it kind of interesting. I thought, wow, an app that gives you easy money. My husband said the betting sites would help with the family budget. And it was a time when I wasn't working and didn't have any income. Only later, I found out he was drowning in debt, a lot of debt. I was devastated. I
I can't blame anyone, man or woman, who decides to end things, who refuses to accept that situation, you know? It's overwhelming.
So online betting on sports only really started in Brazil in 2018, but there hasn't been any regulation or there wasn't any regulation until last year. What effect did this have on the industry? This lack of regulation created a bit of a wild west situation. Betting sites flooded the market. They operated freely without paying taxes or following any rules.
And this made it super easy for anyone to access them. There were no checks or protections to people who were gambling. So as a result, we saw a massive boom in betting, but also rising these gambling related problems, right? People were betting beyond their means and there was no real support system in place.
It's only now we are starting with some regulation and the government is trying to catch up but it's still really incipient. What is the impact of this wild west as you call it? What are the effects of that on society and the economy? Oh, the impact has been huge. On a personal level, gambling addiction can actually tear families apart. I wrote this piece about people getting divorced but also they have been falling into debt or losing their homes and other health issues.
But economically, this is being a double-edged sword because in one hand, the government sees as an opportunity to collect taxes, but all the other people are spending money they don't have, which affects their ability to pay for essentials like health, education, even groceries. So it's a cycle that affects everything.
Not just individuals, but I think the broader economy as well. Research has already showed that people are cutting back on spending in other areas to fund their betting habits. And we're not just talking about skipping on new purchases, but also bigger things like postponing health expenses or education costs.
For younger people especially, I think they are vulnerable because they don't have much financial stability yet. So when they prioritize gambling over things that could actually improve their long-term prospects, that became a huge problem, right? What has the Brazilian government said and what are they trying to do about it? After a few years of letting things run wild, the government finally stepped in this year
We had the first big move that was imposing taxes on betting sites, which had been operating tax-free until now. And that led to a lot of sites shutting down, actually, or just being banned from Brazil. But honestly, this is just the beginning because the taxes aren't as high as some experts that I've talked to think they should be. And the betting industry has a strong lobby in Congress. So, of course, every little thing, it's really hard to pass through the Congress. What have the betting sites themselves had to say about
the impact that they're having on society, on the economy, but also this addiction. Many of them defend a healthy relationship with gambling. Many of them also have institutes for responsible gaming. One is exactly that, Instituto Brasileiro de Jogo Responsável, or in English,
Brazilian Institute of Responsible Gaming. They stated that gaming is and should always be a source of entertainment and should never be used as a way to make quick and easy money and that we are going to an important phase of regulation in Brazil. Ian, thank you so much. Thank you so much for having me. It's been a pleasure talking to you guys.
Ian mentioned how gambling has changed how people in Brazil are engaging with football. And the apps are often designed to really draw you in. So let's hear more about the science behind why gambling can be so addictive. Here is Rhys Bush-Evans, an academic and a member of the gambling research group Agile.
at Bournemouth University in the UK. - Most people can enjoy placing an occasional bet, even if it means they've lost some money. But for some, gambling can become an addiction. And that's because gambling often activates powerful psychological, neurological and behavioural mechanisms that reinforce the behaviour, often making it very difficult to stop. The rise of mobile and online gambling has transformed the gambling industry, making it more accessible, convenient and widespread.
However, research increasingly shows that this accessibility has contributed to a rise in gambling-related harms and addiction. Mobile and online platforms operate 24/7, allowing people to gamble anytime and anywhere. Traditional barriers such as visiting a casino or a bed-in shop are now no longer needed.
Apps and websites make placing bets or participating in games as simple as a few clicks, often reducing opportunities to pause and reconsider. So what are the signs to look out for if you're worried you've got a gambling addiction? Gambling is often called the hidden addiction because it's not always easy to spot. For yourself, it's useful to think about the following. Are you spending a lot of time thinking about gambling? Is it distracting you at work or pulling you away from friends and family?
Often thinking about gambling or planning to gamble can be one of the early warning signs that gambling could be harmful. Are you skipping social or work commitments just to gamble? Are you using gambling to cope or escape from something in your life or to deal with challenges or stress in your life? These are signs of harmful gambling and it can lead to significant losses of money. Finally, do you tend to gamble to win back the money that you've lost?
Do you find yourself hiding how much you gamble or tend to borrow money from others to cover bills that you've already spent on gambling? There are some signs to consider if you're worried about someone else's gambling. Has the person lost interest in activities that they used to enjoy? Do they stay home more frequently or constantly check their phone for gambling updates?
Are they more worried, upset or agitated than usual? And are they staying up late to gamble? If any of these signs resonate with you, it's important to address them with care. Encourage open conversations with those that you care about. Recognising the signs is the first step towards making a positive change. That is all for today's episode of What's in the World from the BBC World Service. I'm Hannah Gelbart. Thank you so much for joining us. Bye.
Yoga is more than just exercise. It's the spiritual practice that millions swear by.
And in 2017, Miranda, a university tutor from London, joins a yoga school that promises profound transformation. It felt a really safe and welcoming space. After the yoga classes, I felt amazing. But soon, that calm, welcoming atmosphere leads to something far darker, a journey that leads to allegations of grooming, trafficking and exploitation across international borders.
I don't have my passport, I don't have my phone, I don't have my bank cards, I have nothing. The passport being taken, the being in a house and not feeling like they can leave.
You just get sucked in so gradually.
And it's done so skillfully that you don't realize. And it's like this, the secret that's there. I wanted to believe that, you know, that whatever they were doing, even if it seemed gross to me,
was for some spiritual reason that I couldn't yet understand. Revealing the hidden secrets of a global yoga network. I feel that I have no other choice. The only thing I can do is to speak about this and to put my reputation and everything else on the line. I want truth and justice.
And for other people to not be hurt, for things to be different in the future. To bring it into the light and almost alchemise some of that evil stuff that went on and take back the power. World of Secrets, Season 6, The Bad Guru. Listen wherever you get your podcasts.