Brazil to Enforce Crackdown Plan Aimed at Illegal Gambling

At the start of September, Brazil announced it was ready to block several websites offering risky products leading to excessive gambling. 

The decision was aligned with the country’s ongoing efforts to enhance player protection, especially in the context of the upcoming opening of the regulated betting market scheduled for January 1, 2025.

At the start of the week, minister of finance Fernando Haddad went further and showcased the government’s take regarding illegal gambling enforcement.

During a radio interview, Haddad explained the ministry was determined to implement new measures to keep citizens protected from unlicensed gambling sites.

The announcement comes on top of the recent ordinance by the same Ministry meant to restrict access to games deemed predatory, which will come into force in January, and the government’s decision to suspend operators who have not applied for a license from the beginning of October.

182 Pending License Applications

The minister commented they will proceed to “take down websites that have not even requested official regulation” in the course of the current week, further adding that the “Treasury’s decision to suspend unregulated betting in the country will come into effect immediately.”

As expected, the decision triggered a barrage of new licence applications with the total number reaching 182, from 117 recorded two weeks ago. 

However, betting platforms that do not comply with the National Congress’ legislation will be shut down in the shortest time possible. 

As part of the government’s broader crackdown, certain payment methods, including welfare cards and credit cards, will also be banned.

Addressing Public Health Concerns and Organized Crime

“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,” added Haddad.

The minister further emphasized the need to “curb the public health problem and the issue of organized crime” while acknowledging the seven long years it took the authorities to regulate the gambling industry in Brazil from the passage of the initial law in 2018.

The delay stemmed from years spent drafting technical regulations, followed by former president Jair Bolsonaro’s failure to approve the proposed rules before a deadline set for 2022. 

It wasn’t until the election of President Luiz Inácio Lula da Silva in 2023 that gambling reform regained momentum, with legislators ultimately including iGaming alongside sports betting in the new law.

The minister also commented that “the previous government had four years to regulate” but spent the time without charging any taxes on betting. This allowed betting companies to profit and “made a lot of money in Brazil” with zero regulations to protect bettors and society.