The FlaBet betting platform, associated with Flamengo and operated by main sponsor Pixbet, has released bets on who will be the future pope chosen by the Catholic Church.
However, this type of betting violates current legislation in Brazil. Article 3 of Law 14,790, enacted in December 2023, restricts betting to sports competitions and online games. The legislation prohibits betting related to political or other issues.
Position of the Ministry of Treasury and response from Pixbet
The Ministry of Treasury reported that it had identified the irregularity and announced the opening of an inspection process. Pixbet stated that there was an “operational error at the international market provider” and took the Pope’s betting market offline as soon as the Estadão news website notified the company. Flamengo chose not to comment.
FlaBet’s platform had opened bets on Jorge Mario Bergoglio’s successor, Pope Francis. The company made bets available in a section called “political contests,” which also included options on the Canadian elections. However, the law prohibits both types of betting.
In the FlaBet system, Pietro Parolin, an Italian cardinal, was considered the favorite to assume the papacy. For those who bet on Parolin and were correct, the house promised to pay triple the amount invested.
If the chosen one was the Hungarian cardinal Péter Erdő, the bettor would receive nine times the amount. For names considered less likely, the return reached 35 times the amount bet.
The Treasury Ministry’s Prize and Betting Secretariat (SPA-MF) reinforced its commitment to the law. It said 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 for FlaBet
The penalties provided for in article 41 include a warning, a fine of up to R$2 billion or even the revocation of the betting license.
Pixbet explained that “the initial availability was due to an operational error by the international market provider, which, although certified and authorized to provide sporting events and online games in Brazil, mistakenly exposed these special markets, the broadcasting of which is restricted by national legislation.”
The company added: “upon becoming aware of the undue exposure of the market related to the non-sporting event (specifically betting on the next pope), it immediately took all necessary steps to remove such market from the platform.”
The note concluded: “The irregular exposure of the aforementioned markets was undue and involuntary, and does not reflect the company’s compliance policy, which acts diligently to respect all current regulatory frameworks.”
About the betting company that sponsors Flamengo
Pixbet Soluções Tecnológicas, based in Paraíba, manages FlaBet and acts as Flamengo‘s main sponsor. The company signed a R$470 million contract, valid until 2027, to have its name printed on the club’s shirt. Finally, Pixbet belongs to Paraíba businessman Ernildo Junior de Farias Santos.
