The Minister of Finance, Fernando Haddad, announced that the order to ban the operation of unauthorized online gambling platforms in Brazil, effective October, is just the first step in a comprehensive process of gambling regulation.
Haddad stated that the Federal Government will work to fight “dependence.” Responding to questions put forward by journalists concerning the regulation of online gambling, Haddad stated that one of the objectives of the Federal Government is to develop ways to discourage addiction. According to Haddad, there is “a pandemic that is established in the country.” He also criticized the lack of initiative from the previous government to regulate online gambling, which was legalized in Brazil in 2018.
“We need to start addressing the issue of psychological dependence on gambling. As we begin the regulation, we will initiate this after four years of inaction, since 2018, when online gambling was legalized in Brazil, because we see the urgent need to put order to this and to team up with the Ministry of Health—there are many reports of health problems and dependencies that have come to us—to create conditions that allow us to support families,” said the minister.
Last week, the Ministry of Finance published a decree that will exclude, starting in October, platforms that do not formally request authorization from the government to operate in Brazil. According to Haddad, this decree is one of the steps in the regulation of the industry. The ministry created the Secretariat for Prizes and Betting (SPA) according to Haddad in order to prepare complementary rules for other issues, such as banning the use of credit cards for making bets and specifying limits on the advertising of bets. “We will safeguard families. We will seek support from civil society as well,” he said.
Starting in October, companies that have not requested authorization will be considered illegal until they obtain permission to operate. Those that have requested authorization but are not yet operating will have to wait until January to begin, provided they meet all the requirements set out by the Ministry of Finance. Meanwhile operators that have already sought authorization will enter a transition period. They will need to specify their active brands and the internet domains they plan to use for services by September 30, 2024. This transition period will last from October 1, 2024, to December 31, 2024, leading up to the launch of the regulated market in Brazil on January 1, 2025.