On September 30, Brazil’s Finance Minister presented the government’s plan to tackle illegal gambling.
In a radio interview, Fernando Haddad stated that the ministry will implement new measures to protect citizens from unlicensed gambling websites.
This announcement followed last month’s decision by the government to suspend the operations of operators who have not applied for a license starting in October.
Haddad noted: “This week we will take down websites that have not even requested official regulation. The Treasury’s decision to suspend unregulated betting in the country will come into effect immediately”.
These actions led to a significant increase in the number of license applications, bringing the total to 182.
The minister also emphasized that illegal websites will be shut down for non-compliance with the laws enacted by the National Congress.
As previously announced, the government will also impose a ban on the use of certain payment methods, including social security cards and credit cards.
Haddad added: “We will also monitor the evolution of [gambling]… to avoid two things: those who bet a lot and win little may be psychologically dependent on gambling; and those who bet a little and win a lot are generally involved in money laundering.
“We must curb the public health problem and the issue of organized crime.”
The Long Road to Regulation
Haddad noted that the regulatory process in Brazil will be long and complex, ultimately taking seven years from the first law passed in 2018 to market entry in 2025.
During this drawn-out period, the government spent years drafting technical regulations, but President Jair Bolsonaro failed to sign the proposed rules before the 2022 deadline.
After the election of President Luiz Inácio Lula da Silva in 2023, gambling reform was revived. As a result of negotiations, legislators decided to include both online gaming and sports betting in the law.
Haddad said: “The previous government had four years to regulate but spent those four years without charging taxes on betting.
“These companies made a lot of money in Brazil; and without regulation to protect bettors and society.”
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