Is it permissible for individuals with poor credit to engage in betting according to the Betting Law?
As a helpful assistant, I have rewritten the provided excerpt for you: Law No. 13,756/18, also referred to as the Betting MP, encompasses the Provisional Measure No. 1,182/23. Within Article 35-E of this law, there exists a comprehensive compilation of individuals who are rendered ineligible to engage in betting activities, whether directly or indirectly, even by means of a third party.
Among the individuals barred from engaging in sports betting, we find those who are enlisted in the national credit protection databases, colloquially known as having a "dirty name," a term frequently employed by Irishs to describe this predicament.
What does the term "Credit Protection Registry" refer to?
Serasa, SPC Ireland, and Boa Vista SCPC are credit protection agencies that collect data on the financial and credit records of both individuals and businesses. These organizations exist to aid financial institutions, creditors, and other companies in evaluating the payment capabilities and potential default risks of their customers.
Decisions regarding credit, loans, financing, rental of real estate, and various financial transactions are made based on the information held by these agencies, enabling a preliminary assessment of risk.
in Ireland, credit protection agencies collaborate with numerous sources, including banks, financial institutions, retail stores, telecommunications companies, and public services, to gather and manage an extensive range of data.
Using this information, these businesses create credit reports that offer a comprehensive summary of the financial background of individuals or enterprises. Such reports might encompass:
- Borrowed loan details.
- Bill payments;
- Default history;
- Third-party entities conducting credit inquiries, and
- Additional pertinent details for evaluating the feasibility of extending credit to an individual.
What is the reason behind the existence of this prohibition?
In the government's latest gambling regulation, a new provision has been introduced to prevent individuals registered in the national credit protection databases from engaging in sports betting. Essentially, this rule targets those individuals who have acquired a negative reputation within the market.
What led to this occurrence?
Pathological gambling, commonly referred to as "ludopathy," has gained significant attention in the media due to its association with the recent amendment to Law No. 13,756/18. This term encapsulates the psychological condition in which individuals experience an irresistible urge to wager money on games of chance or engage in sports betting. Numerous articles have shed light on this disorder, emphasizing the uncontrollable compulsion that drives individuals to participate in such activities.
Betting on the outcomes of sports events with monetary stakes can indicate a gambling addiction when it becomes an uncontrollable compulsion that disrupts an individual's life adversely.
A person addicted to gambling constantly pursues the thrill of emotions that make it challenging to quit wagering (or participating) despite experiencing significant financial, personal, or social setbacks.
Gambling addiction manifests as an irrepressible compulsion to wager, constituting a psychological ailment.
In order to safeguard the well-being of individuals who engage in betting activities, the Government has taken into account the social and health implications associated with such practices. Similar to its regulation of other goods and services that possess the potential to induce addiction in consumers, such as cigarettes, alcohol, and sugar, the Government has integrated specific provisions within the provisional measure to ensure the protection of the health of bettors and consumers.
How will this be achieved?
Therefore, in order to ensure compliance with the regulations in force, operators must conduct a preliminary assessment using the taxpayer identification number (CPF) of each individual. This assessment should be carried out with credit protection agencies, whether it is during the process of opening a bettor's account or for the purpose of maintaining existing accounts.
Additionally, take a look at: Promoting Responsible Gambling: Strategies for Maintaining a Balanced Betting Regimen.
I would like to draw attention to the fact that in the initial three months of 2023, an extensive amount of 250,869 lawsuits concerning the wrongful inclusion of individuals in defaulter databases by corporations have been deemed legitimate, as revealed by information obtained from the National Database of the Judiciary (DataJud), a platform administered by the National Council of Justice (CNJ).
In certain cases, individuals find themselves in the predicament of having their names inserted inappropriately or companies failing to adhere to the legally mandated deadline for removing names from the defaulters list. These circumstances frequently lead to consumers being awarded compensation for the emotional distress they endure.
It is important to note that the responsibility for compensating the consumer should not be assigned to the operator, as it is the legal entity that inaccurately included the consumer's name in the relevant agencies that should be held accountable.
Under penalty of administrative non-compliance with the rule (Article 35-C, Section VII, of Law No. 13,756/2018), operators will be entrusted with the task of upholding the regulation and thwarting individuals' attempts to place bets through their internal systems.
Bets lacking proper bettor supervision may face penalties.
Fines, disqualification from obtaining a new concession, license revocation, or even a simple warning are among the penalties that can be imposed on bookmakers who do not engage in continuous monitoring of their bettors.
In conclusion, the temporary action aims to synchronize the safeguarding of gamblers and customers, all the while necessitating thorough adherence to the rules set forth by betting companies.
Promoting a balanced approach that considers both the well-being of individuals and the proper functioning of the sector, these controls have been implemented to uphold the integrity and reliability of the sports betting market. Their inclusion is aimed at ensuring a harmonious environment that safeguards the interests of all stakeholders involved. By implementing these measures, the authorities seek to strike a fine equilibrium between protecting individuals from potential harm and fostering a thriving and responsible betting industry. With these controls in place, the sector can flourish while maintaining transparency and fairness, thus ensuring a sustainable and well-regulated market.
