Gambling concerns in Brazil

In response to concerns over gambling addiction, Brazil has begun blocking over 2,000 gambling websites “designated as irregular.”

Most types of gambling are illegal in Brazil—think of casinos and slot machines—but with online gambling being legalized in 2018, “more than 52 million people started betting online in the last five years.”

firms must demonstrate a willingness to comply with new legislation

Almost 100 companies run 210 gambling websites. To remain active, the firms must demonstrate a willingness to comply with new legislation and have until the end of the year to renew their license applications. Other companies that are not authorized to operate in Brazil have decided to take their cases to court, while others hope to remain in operation if they are given until the end of the year to gain approval from the federal government.

Thanks to legislation that goes into effect January 1, 2025, companies that wish to remain in business must comply with two stiff statutes. First, they must pay 30 million reais (US$5.3m). Second, they must “permanently comply with federal rules to curb fraud, money laundering, and abusive advertisements in order to remain in business.”

Concerns over gambling

Finance and health authorities point to the increase in gambling addiction and related expenses as reasons why more regulation would benefit Brazil. Other concerns include welfare benefits being used for gambling. As reported by VegasSlotsOnline News on October 7, Brazil’s president Lula said he will “ban online betting if regulation does not cure addiction.”

Lula added: “Everyone knows that the person going to buy bread in the morning will make a small bet using the bread money. But what I cannot allow is betting to turn into a disease, an addiction, and for people to become dependent on it.”

On the other hand, media companies and soccer clubs have seen a dramatic rise in sponsorship from betting companies. ABC News reports that “[a]lmost all the clubs in Brazil’s top soccer division are sponsored by betting companies.”

Sports executives have sent appeals to the federal government to allow sponsoring companies to remain functioning, saying they worry about losing valuable revenue “if those companies are permanently blocked.”