Brazil Gaming Update: Senator Costa Links Inflation Gains With Risks From Online Gambling

Brazil’s economy is showing some relief from inflation, but Senator Humberto Costa says online gambling remains a growing burden on household budgets. Speaking on the Senate floor, Costa pointed to fresh economic data while warning about the social costs of digital betting.

Good to Know

• Brazil’s IPCA-15 index posted a 0.14% drop in August, the first deflation since 2023.
• Online betting rose 1.09% in the same month, outpacing health and personal care expenses.
• Costa is calling for tighter controls on gambling despite existing regulation.

Costa welcomed the latest report from the IPCA-15, which showed a 0.14% decline in August. The data marked Brazil’s first sign of deflation in nearly two years, offering a positive signal for the economy.

But while most categories softened, he highlighted that “personal expenses” in the index climbed, largely due to online betting activity. According to Costa, this sector has become a key driver of household spending growth, putting pressure on families even as broader costs ease.

Betting as a Growing Concern

Costa said betting rose 1.09% last month, surpassing increases in health and personal care (0.64%). He described this as evidence of the “damage” that unchecked gambling can have on both the economy and public health.

“Regulation is in place, but we need to take further steps to address a growing social challenge,” Costa said.

He added that the impact of online betting was visible in official statistics, underlining the need for a stronger legislative response.

In July, the IBGE had already reported digital betting as an inflationary factor, noting that for the first time, wagers carried more weight than electricity in the national index. Costa says the trend should be taken seriously, warning that gambling can quietly erode family finances if not better controlled.

Costa’s speech fits into broader discussions in Congress over how to strengthen responsible gambling measures. While Brazil has taken major steps by legalizing and regulating the sector, lawmakers are still weighing whether additional safeguards are needed to limit the risks tied to addiction and unlicensed operators. This includes discussions on how to tackle illegal gambling.

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