Are betting companies to blame or is it Brazil’s economic framework of the last 35 years?

This is the central question raised by Carlos Akira Sato in his analysis of Brazil’s rising household debt.

Rather than attributing over-indebtedness to sports betting platforms, he argues that the issue is rooted in decades of economic transformation shaped by credit expansion, financialization, and increasingly sophisticated systems of consumer stimulation across multiple sectors.

The debate surrounding Brazilian household debt has gained a new preferred target: sports betting platforms.

The so-called “bets” have taken center stage in the news, political discourse, and regulatory discussions, often associated with rising default rates and financial compulsiveness.

But perhaps the correct question is another one: did the over-indebtedness of Brazilian families really begin with bets?

The answer, under a serious historical analysis, is no.

The phenomenon predates the regulation of sports betting by decades and is linked to a profound economic, cultural, and technological transformation that began in the 1990s, when Brazil gradually abandoned a closed and inflationary economy to enter a modern logic of consumption, credit, and the financialization of everyday life.

The economic opening promoted during the Collor administration changed the country’s consumption patterns.

A few years later, the Real Plan brought monetary stability and transformed the population’s economic psychology itself.

For the first time, millions of Brazilians began financing goods, using credit cards, paying in installments, and incorporating debt as a normal part of economic life.

This process represented progress and financial inclusion.

But it also consolidated a new economic model based on the anticipation of families’ future income. Credit ceased to be an exception and became permanent infrastructure supporting national consumption.

Banks, retailers, and financial institutions quickly understood this change. Large retail chains stopped acting solely as product distributors and became financial platforms.

Private-label cards, sophisticated installment plans, and permanent financing mechanisms became part of consumers’ daily lives. In many cases, financial margins became just as relevant as the sale of the products themselves.

Throughout the 2000s, the model deepened.

The expansion of banking access, electronic payment methods, and fintechs accelerated the financialization of everyday life.

From 2013 onward, with the regulatory opening promoted by Law No. 12,865, mobile phones simultaneously became banks, digital wallets, credit platforms, marketplaces, and permanent environments for behavioral monetization.

Credit became instant, invisible, and integrated into the digital experience. Consumers started obtaining financing in just a few clicks, often within the purchasing flow itself. Brazil definitively entered the era of behavioral hyperstimulation of consumption.

And this is where the contemporary debate begins to reveal an important contradiction.

While the country spent decades building a sophisticated economic architecture based on credit expansion, emotional advertising, gamification, attention capture, and monetization of future income, structural investment in financial education remained insufficient.

Brazil taught its population how to consume before teaching them how to build wealth.

Today, virtually every relevant sector of the economy operates advanced behavioral stimulation mechanisms: digital retail, apps, streaming platforms, delivery services, marketplaces, banks, fintechs, and social networks.

Advertising is no longer merely informative; it has become algorithmic, personalized, and emotional. The modern consumer competes for attention and self-control against systems designed to maximize engagement and continuous consumption.

This phenomenon appears even in sectors rarely associated with regulatory debates.

The food retail industry, for example, uses sophisticated neuromarketing techniques to boost the consumption of ultra-processed foods, alcoholic beverages, and impulse-buy products. Yet few segments have faced a level of monitoring similar to that imposed on sports betting.

Brazil’s regulated betting sector emerged under one of the strictest frameworks in the digital economy.

Platforms are required to biometrically identify users, monitor behavior, track transactions, report suspicious activity to COAF, implement responsible gaming policies, and prevent bets financed through credit.

The Brazilian model requires prior deposits and prohibits “uncovered” betting.

In other words, regulators correctly understood that the combination of compulsiveness and credit could become socially explosive.

But here an inevitable question arises: why have sectors historically associated with the over-indebtedness of Brazilian families operated for decades under significantly lower levels of behavioral monitoring?

Data from CNC show that the percentage of indebted families reached 80.2% in February 2026 — the highest level in the historical series.

This scenario did not begin with bets. It is the result of decades of aggressive credit expansion, financialization of daily life, hyperstimulation of consumption, and the structural absence of economic education for the population.

Comparative framework: regulatory and behavioral obligations

Perhaps the most provocative point is precisely the regulatory asymmetry revealed by this debate.

Several sectors historically associated with compulsiveness, hyperconsumption, and dependency have operated for decades under a less interventionist regulatory logic than the one currently applied to sports betting.

In the end, the real debate may not simply be “how should betting be regulated?”, but rather how to prepare society to live in a digital, hyper-financialized economy permanently driven by attention capture, consumption, and behavioral monetization.

Carlos Akira Sato
Co-Founder of Fenynx Digital Assets and specialist in Regulated Markets, Financial Infrastructure, Governance, and Innovation. Vice President of Institutional Relations at PAGOS (Association for Electronic Payment Management).

The Federal Government officially launched this week (May 12) the Investigation Group for the Repression of Sports Results Manipulation, Betting Fraud, and Related Crimes, named “Base Apostas.”

The new Federal Police structure was created with the mission of protecting the integrity of Brazilian sports and dismantling criminal networks operating within the illegal betting market, a move that immediately received support from the Brazilian Institute of Responsible Gaming (IBJR).

Intelligence and disruption of criminal finances

Base Apostas will not only operate on the front line of criminal investigations but will also focus heavily on financial intelligence and asset recovery.

Its central objective is to financially dismantle transnational organizations that use match-fixing schemes for money laundering and illegal capital transfers.

The structure will use advanced digital platform monitoring techniques and data analysis, relying on professionals specialized in financial crimes and the complex fixed-odds betting ecosystem.

According to Giovanni Rocco, National Secretary for Sports Betting, the initiative is vital for public trust:

“Protecting sports results means protecting athletes, fans, and the sustainable development of sports.”

IBJR: the regulated market as an ally

IBJR’s support for the initiative reinforces a clear narrative: the regulated market is the main ally in the fight against crime.

Licensed operators already invest in international monitoring systems and advanced technologies, such as facial recognition, to ensure compliance and report suspicious patterns to organizations like the International Betting Integrity Association (IBIA).

The biggest challenge, however, remains the illegal market. According to data highlighted by IBJR:

– Market volume: The illegal sector moves approximately R$40 billion annually.

-Public losses: Brazil is estimated to lose R$10.8 billion per year in unpaid taxes.

-Consumer risks: Unauthorized platforms do not offer payment guarantees or data protection and are often used as fronts for criminal organizations.

International cooperation and national policy

The creation of Base Apostas is a direct result of the National Policy for the Prevention and Combat of Sports Results Manipulation (PNPEMR), established in April.

The initiative involves unprecedented coordination between the Ministries of Sports, Justice, and Finance, alongside the Federal Police.

Given the transnational nature of match-fixing operations, the new Federal Police unit will prioritize international law enforcement cooperation.

The strategy is clear: to create an environment where technical compliance is the only path to operating in the country, isolating illegal networks and strengthening legal certainty for operators that chose regulation.

Owner of the Betnacional and Betfair Brazil brands, the company celebrates its anniversary prioritizing consumer safety and the sustainability of Brazil’s regulated market.

Flutter Brazil celebrates its first year of operations in the country this Thursday, May 14.

During this period, the company has not only entered the Brazilian market but has also established itself as one of the leading references in the country’s newly regulated betting landscape.

The company doubled its workforce across Brazil, with operational bases in Recife (PE), São Paulo (SP), and Marechal Rondon (PR).

The company combines Flutter Entertainment’s global technological expertise with the strong local identity of its brands.

Betnacional has strengthened its position as a brand that understands the passion of Brazilian football fans, while Betfair Brazil continues to deliver advanced pricing and security technology for sports betting enthusiasts.

“As we complete our first year in Brazil, we reaffirm our long-term commitment to the country.

We have invested in building a solid and responsible operation aligned with global best practices at a key moment for the consolidation of the regulated market.

We believe in Brazil’s potential and in the role we can play in the sustainable development of the sector,” said Flutter Brazil CEO Eduardo Monte.

In addition to operational expansion, the company strengthened its brand presence throughout the past year through advertising campaigns, sports sponsorships, and strategic partnerships.

Betnacional maintains sponsorship agreements with Brazilian football clubs such as Athletic, Cruzeiro, and Sport — with the latter two also including support for women’s teams.

The brand also relies on ambassadors such as Vini Jr. and Galvão Bueno to amplify its key messages and connect directly with Brazilian audiences.

Creators such as Bárbara Coelho, André Balada, and Igor Rodrigues complement the strategy, reflecting the way Brazilians consume football, entertainment, and sports discussions while representing cultural diversity and regional identities.

Betnacional’s activities also include presence in sports broadcasts through partnerships with Globo and CazéTV, as well as sponsorship of sporting events such as the Rio Open and Copa Maria Bonita, in addition to entertainment events like Lollapalooza and Carnival celebrations.

Regarding Betfair Brazil, the brand’s positioning is reinforced by a team of specialists including Mauro Beting, Rômulo Mendonça, and Cacá Bueno, strengthening connections with a more analytical sports betting audience.

Responsible Gaming at the core of the strategy

Alongside commercial growth, Flutter Brazil has consolidated Responsible Gaming as one of the central pillars of its operation.

Since last month, the company has been running a campaign featuring Vini Jr. as “Vini Senior,” addressing the topic in a more accessible and relatable way through humor while maintaining the seriousness of the subject.

Through Betnacional and Betfair, the company offers user protection tools required under Brazil’s regulated framework, including deposit limits, usage time controls, temporary breaks, and self-exclusion mechanisms.

The operation also adopts strict identity verification processes to prevent underage access and enhance protection for vulnerable audiences.

“We see regulation as an important step toward the maturity of the sector in Brazil. Compliance with tax and regulatory requirements is part of our long-term vision and our commitment to transparency, governance, and consumer protection.

We have the structure, technology, and scale to continue growing sustainably, strengthening our brands, and contributing to the responsible development of the industry,” Eduardo Monte added.

Heading into its second year of operations in the country, Flutter Brazil will continue investing in innovation and partnerships that strengthen Brazilian sports, always under strict Responsible Gaming standards.

The company remains committed to investing in talent and technology, consolidating its operation as a hub of excellence and compliance in Brazil.