Brazil: Finance Minister Speaks Out Against Online Gambling

In a recent interview, Brazil’s Finance Minister Fernando Haddad issued one of his strongest public critiques of the nation’s nascent online betting industry, stating that if it were up to him, he would ban it.

Finance Minister Criticizes Online Betting

Haddad highlighted what he described as a public health problem, citing the high prevalence of gambling among young people and the lack of regulatory oversight for offshore gaming platforms. He also condemned previous administrations for failing to regulate advertising or tax betting companies, which, he argued, led to approximately BRL 40 billion (USD 7.2 million) being transferred overseas without proper oversight.

Now that the federal government has begun accessing and analyzing data related to betting, Haddad stated that a coordinated strategy is being developed. According to the minister, federal police should be involved, as crimes are being committed.

The minister also issued a specific warning about the role of fintech companies in facilitating illegal gambling and potential money laundering. He confirmed that the Central Bank is already receiving information about financial institutions that may be linked to criminal activities.

What’s the State of Gambling in Brazil?

On January 1, 2025, Brazil officially launched its regulated market for betting and online gambling. The practice is immensely popular in the country, with 86.43% of sports fans reporting they use online betting platforms. However, prior to the official launch, the absence of proper legislation and licensing allowed foreign operators to benefit from Brazil’s strong interest in the iGaming sector.

In an effort to recover what is considered lost revenue, which is estimated at $1.5 billion in 2023, Brazilian authorities have introduced new regulations aimed at redirecting billions back into the national economy. Last month, Brazil raised its gambling tax for this very reason, though major industry players pushed back.

Despite that resistance, the country has moved swiftly to enhance its gambling framework, particularly in relation to physical casinos. While online betting is regulated separately, the Senate recently voted on a bill aimed at controlling brick-and-mortar gambling establishments.

Perhaps the most significant recent development in Brazil’s push for a unified and regulated national framework for fixed-odds betting and lottery operations occurred just last week. The government created a specialized working group tasked with overseeing the authorization of operators, ensuring regulatory compliance, and enforcing penalties for violations.

Brazil’s gambling sector is still in its early stages. While many hurdles remain, the country appears to be steadily progressing toward a more unified and well-regulated gaming landscape.