Today, December 9th, the Brazilian government revealed the formation of a new interministerial working group focused on mental health, aimed at preventing and reducing the harm associated with problem gambling. Read more here.
This group includes representatives from the ministries responsible for sports, finance, health, along with the social communication secretariat. Their mission is to develop strategies for prevention, assistance, and raising awareness regarding gambling challenges in Brazil.
Members of the group have a 60-day window to propose their strategies, which will be developed in collaboration with the various ministries. These meetings, occurring bi-weekly, will evaluate current policies and could recommend new regulatory measures for the Secretariat of Prizes and Bets (SPA).
“Our primary focus is to create strategies that prevent gambling addictions, reduce harm, and provide necessary support for those impacted, particularly given the rise of fixed-odds betting,” stated the group’s official press release.
This initiative comes as the legally sanctioned gambling market, set to launch on January 1, 2025, spurs growing concerns about the broader societal impacts of gambling in Brazil.
Immediate steps are being enacted, such as imposing advertising restrictions and banning the use of social welfare funds for gambling. Betting law constitutionality was even under scrutiny during a two-day Federal Supreme Court (STF) hearing in November. More details here.
Working Group Responds to Wider Gambling Issues
In addition to measures like restricting advertising and prohibiting gambling with social welfare funds, the Ministry of Finance has cracked down on using credit cards for gambling. Additionally, facial recognition is now required for identity verification.
Despite these actions, Brazil’s gambling industry continues to face backlash, with accusations of negatively impacting social and financial health. The illegal gambling market remains a persistent problem.
In November, the National Association of Games and Lotteries reported the presence of over 2,000 illegal betting sites active in Brazil. This is despite the government issuing a list of more than 5,200 domains to be blocked by the National Telecommunications Agency (Anatel). Learn more here.
Anatel President Carlos Baigorri likened their efforts to curtail illegal sites as trying to mop ice, highlighting the need for more authority to effectively address the issue. Further reading here.
Did Delays in Legal Market Launch Contribute to Challenges?
Many industry insiders believe that the prolonged delays—from the National Congress’ initial 2018 legislation approval for online betting to the chamber of deputies’ final decision in December 2023—have exacerbated current gambling issues and illegal operations.
The federal government’s announcement acknowledges that this delay, compounded by the unregulated growth of the gambling industry in Brazil, has led to problems.
“Since 2018’s legalization of fixed-odds betting, the absence of strict regulations allowed the market to expand unchecked, exposing players to abusive practices and heightening addiction risks,” the announcement said. “Recognizing the severity, the government is prioritizing the mental well-being of gamblers by enforcing stricter operational regulations.”