Brazil President Lula da Silva is expected to announce this week a package of measures focusing on bettors’ mental health and restricting online bookmakers’ advertising. Lula is stepping in at a time of ongoing controversy regarding perceived uncontrolled betting in the country.
The government’s unease with the issue has led him to intervene directly in the matter, according to Globo.com. The Ministry of Finance is currently working on finalizing what will be announced, with the help of the Ministries of Health and Social Development on some topics.
There are plans to veto the use of credit cards and Bolsa Família cards to pay for gambling, as well as the obligation to display ‘responsible advertising’ in betting commercials. This includes not allowing, for example, advertising campaigns suggesting that the punter can become a millionaire by betting.
As of Tuesday, October 1, only the 113 betting companies that have applied for authorization to operate in Brazil and that were already active will be able to continue operating by the end of the year. In around 30 days, the government will analyze the applications. Those that pass the sieve will have to pay Brazilian Reals R$30 million ($5.5 M) to continue on the market.
The other 500 or so betting companies that the government estimates exist will have to cease their activities as of October 8th. The sites of the companies that have not applied for a license by the deadline will be blocked from October 10th. Between now and then, they are required to give bettors the chance to withdraw funds ahead of the shutdown.
Brazilians spend USD 3.700 billion monthly on platforms
The report cited a survey by the Central Bank (BC) which showed that, via Pix alone, Brazilians have transferred around R$20 billion ($3.700 B) a month to online betting and casino platforms this year, the first official figure to measure the growth of this market in the country. Lula says online gambling will need regulation: “If not, we’ll have casinos in our kitchens”
Brazilians’ spending on online betting and gambling is a cause of concern for the government, business, and financial sectors. However, the introduction of new rules to regulate the activity is expected to help sanitize and control this market, according to experts and representatives of the sector.
Online gambling has grown unchecked in the country since it was legalized in 2018, but only now has it been regulated. The entry into force of the rules will allow the government to control licensed sites and take down irregular ones, according to industry professionals.
Plínio Lemos
The President of the National Association of Games and Lotteries (ANJL), Plínio Lemos, estimates that there are currently more than a thousand illegal betting sites operating in Brazil.
In the face of growing concern about the risk of addiction and indebtedness among families, the government decided to bring forward, from January 2025 to 11th October, the blocking of sites that have not applied for the licenses required by the regulation upon payment of fees.
According to the Ministry of Finance, 113 companies had applied by August.
“When we say illegal site, we’re talking about a site with no responsibility. It opens today, starts taking deposits, people start betting and, when there’s too much money in the site’s till, it simply closes down the operation,” said Lemos.
Original article: https://www.yogonet.com/international/noticias/2024/10/01/80487-brazilian-president-lula-da-silva-to-announce-restrictions-on-betting-payments-and-advertising
