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FlaBet Faces Scrutiny for Illegal Betting on Future Pope

The FlaBet betting platform, linked with Flamengo and operated by its main sponsor, Pixbet, has recently offered bets on who will be the next pope chosen by the Catholic Church. However, this type of betting contravenes existing legislation in Brazil. Article 3 of Law 14,790, enacted in December 2023, limits betting activities to sports competitions and online games, explicitly prohibiting bets related to political or other non-sporting issues.

The Ministry of Treasury has noted this irregularity and announced the initiation of an inspection process. In response, Pixbet claimed there was an “operational error at the international market provider” and that they took the Pope betting market offline promptly after being notified by the Estadão news website. Flamengo, however, has opted not to comment on the matter.

FlaBet’s platform had opened bets on the successor to Pope Francis, Jorge Mario Bergoglio. Bets were available in a section titled “political contests,” which also included options concerning Canadian elections, both of which are prohibited under the law. Within FlaBet’s system, Italian cardinal Pietro Parolin was designated as the favorite to assume the papacy, with the house promising to pay triple the amount wagered for those betting on Parolin correctly. If bettors selected the Hungarian cardinal Péter Erdő, they would receive nine times their wager. For names deemed less likely, returns could reach as much as 35 times the amount bet.

The Treasury Ministry’s Prize and Betting Secretariat (SPA-MF) reaffirmed its commitment to upholding the law, stating that “the company will be notified to remove from its website all bets that are not authorized by law, since only bets on sporting events and online games are authorized within the scope of fixed-odds bets.”

Possible penalties stated in article 41 could include a warning, a fine of up to R$2 billion, or even the revocation of the betting license. Pixbet clarified that the initial offering was due to an operational error by the international market provider, which, while certified and authorized for Brazilian sports events and online games, mistakenly exposed these special markets that are restricted by national legislation. Following awareness of the improper exposure regarding the non-sporting event (specifically bets on the next pope), Pixbet quickly implemented necessary steps to eliminate the market from their platform.

Read also: Rising Concerns Over Brazilian social welfare Recipients’ Online Betting Habits

Pixbet concluded its statement by emphasizing that the irregular exposure of the aforementioned markets was undue and unintentional, stating that it does not reflect the company’s compliance policy, which actively seeks to adhere to all current regulatory frameworks.

Pixbet Soluções Tecnológicas, based in Paraíba, operates FlaBet and serves as Flamengo’s primary sponsor. The company has a contract worth R$470 million, effective until 2027, which includes having its name featured on the club’s jersey. Notably, Pixbet is owned by Paraíba businessman Ernildo Junior de Farias Santos. Flabet Pope

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