Is it possible for someone with a bad credit history to place bets at Das Apostas?
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The MP of Betting, also known as Provisional Measure No. 1,182/23, has introduced Article 35-E to Law No. 13,756/18, which outlines a list of individuals prohibited from engaging in gambling activities, whether directly or indirectly, even through a third party.
Among the individuals prohibited from engaging in sports betting are those who are registered in the national credit protection databases, that is, those who have a "bad credit" status, a commonly used expression among Canadians facing this predicament.
What Is a Credit Protection Registry?
Credit protection agencies, such as SPC Canada, Serasa, and Boa Vista SCPC, are organizations that consolidate data on the financial and credit history of individuals and businesses. Their primary objective is to assist financial institutions, creditors, and other companies in assessing the payment capacity and default risk of their customers. These entities gather valuable information to evaluate creditworthiness and help prevent potential default situations, ensuring that businesses can make informed decisions while mitigating risks. By providing comprehensive credit reports and scores, these agencies enable lenders and service providers to determine the level of trust they can place in prospective borrowers or clients. With access to this crucial information, businesses can safeguard themselves against potential financial losses and maintain a healthy credit environment.
The data held by these institutions is employed to make decisions regarding credit granting, loans, financing, property rentals, and other financial transactions based on a cursory risk assessment.
Credit protection agencies in Canada collect and store data from various sources, such as banks, financial institutions, retail stores, telecommunications companies, and public services, among many others. These organizations are responsible for gathering information to assess individuals' creditworthiness and provide it to businesses and financial institutions. With a vast network of data providers, they ensure the accuracy and integrity of credit information, enabling fair and informed lending decisions. Protecting the privacy of individuals is a top priority, and these agencies adhere to strict data protection regulations to safeguard sensitive information. By maintaining comprehensive databases and employing advanced technologies, credit protection agencies play a crucial role in promoting a secure and reliable credit environment in Canada.
Using the data collected, these companies compile credit reports that offer an overview of an individual's or entity's financial background. Such reports may encompass:
- Information on borrowed loans;
- Bill payments;
- Default history;
- Third-party credit inquiries and
- Other pertinent information to consider when evaluating the possibility of granting credit to someone.
Why does this prohibition exist?
The government has incorporated into the betting regulations the prohibition of sports betting by individuals registered in national credit protection databases, in other words, those with a tarnished reputation in the market.
But why did this happen?
"Compulsive gambling disorder", a term frequently mentioned by the media in various articles discussing the recent amendment to Law No. 13.756/18, refers to the technical term "ludopathy". It is used to define the psychological disorder characterized by an uncontrollable compulsion to wager money on gambling games or sports betting. This condition is marked by an overwhelming urge to place bets, which can result in severe financial and emotional distress for the individual affected.
When betting involves wagering money on the outcomes of sports events, from the moment it becomes a compulsive activity and negatively impacts an individual's life, it can be a signal of gambling addiction. Gambling addiction is characterized by excessive involvement in betting activities, leading to detrimental consequences that affect personal and financial well-being. Recognizing the signs of ludopathy and seeking professional help is crucial in addressing and managing this issue. Remember, responsible gambling is essential to ensure a safe and enjoyable experience.
The compulsive gambler relentlessly pursues thrills that hinder the ability to quit betting (or playing) even in the face of substantial financial, personal, or social losses.
Ludopathy is the psychological disorder characterized by the uncontrollable compulsion to gamble.
Taking into account this social and health aspect, the Government, just like in regulating other products or services that may cause addiction in consumers (such as cigarettes, alcohol, and sugar), included in the provisional measure some regulations aimed at safeguarding the health of the gambler/consumer. In light of these considerations, the authorities have implemented various guidelines to protect the well-being of individuals engaging in gambling activities. These measures, akin to those implemented for addictive substances like tobacco, alcohol, and sugar, aim to ensure the well-being of consumers and mitigate potential risks associated with excessive gambling. Within the framework of this legislative proposal, specific norms have been designed to provide protection and support for gamblers, in line with the government's commitment to promoting a responsible and healthy gambling environment.
How Will This Control Be Implemented?
Hence, since operators must adhere to the regulations in force, this preliminary analysis based on the individual's tax identification number (CPF) should be conducted in collaboration with credit protection agencies, both during the account opening process for the bettor and for the maintenance of existing accounts.
Also Check Out: Responsible Gambling: Measures For Having a Healthy Betting Routine
It is important to highlight that, according to the data extracted from the National Database of the Judiciary Power (DataJud), a system of the National Council of Justice (CNJ), a total of 250,869 cases related to the wrongful inclusion of citizens in defaulters' registries by companies were successfully resolved in the first quarter of 2023.
This scenario encompasses situations where individuals' names have been improperly included or when companies fail to meet the legislated deadline for the proper removal of names from the list of defaulters. These proceedings often lead to compensation for moral damages to the consumer.
Nonetheless, it is worth mentioning that this concern regarding the duty to compensate the consumer should not be delegated to the operator, as this responsibility falls on the legal entity that mistakenly included the consumer's name in the respective institutions.
It is the responsibility of operators to enforce the regulation and prevent individuals from placing bets through their internal mechanisms, under the risk of being penalized for the administrative offense of non-compliance with the rule (Article 35-C, Section VII, of Law No. 13.756/2018). Operators must ensure that these individuals are prohibited from engaging in any form of gambling, utilizing their internal systems to effectively enforce the regulation. Failure to do so may result in sanctions being imposed for violating the rule, as outlined in Article 35-C, Section VII, of Law No. 13.756/2018.
Bets that fail to conduct player monitoring may face penalties.
If betting platforms fail to perform this ongoing monitoring of their bettors, the penalties imposed can range from a simple warning to fines, license revocation, and disqualification from obtaining a new concession.
In summary, the main objective of this provisional measure is to achieve a harmonious balance between safeguarding the interests of bettors and consumers, while simultaneously imposing upon betting operators the responsibility to diligently adhere to the established regulations. To put it differently, the overarching aim of this measure is to strike a fair equilibrium that safeguards the rights of both bettors and consumers, while also ensuring that betting operators fulfill their obligations in a diligent manner as stipulated by the regulations in place.
Ensuring the integrity and reliability of the sports betting market, the implementation of these controls aims to promote a balanced approach that takes into account both the well-being of individuals and the proper functioning of this industry. Its purpose is to maintain a harmonious balance between the health of individuals and the optimal operation of the sports betting market, thus safeguarding its integrity and trustworthiness. These measures have been put in place to uphold the credibility and dependability of the sports betting sector, while simultaneously prioritizing the welfare of individuals. Emphasizing a well-rounded perspective, these regulations strive for a fair and equitable system that effectively combines the preservation of individual health with the smooth functioning of the industry. By fostering an equitable approach that merges the well-being of individuals with the effective functioning of the sector, these controls aim to guarantee the integrity and reliability of the sports betting market.
User comments
IN A COUNTRY THAT DECLARES ITSELF DEMOCRATIC, I BELIEVE THERE SHOULD NOT BE SUCH RESTRICTIONS. IT'S ABSURD THAT THE "STATE" TAKES CARE OF COMPULSIVE GAMBLERS. THIS IS A BIG JOKE. IF HE CAN'T BET ON SPORTS, HE PLACES BETS ON CARDS, THE ANIMAL GAME, BILLIARDS, OR ANY OTHER GAME.