From January 1, 2025, Brazil’s regulated betting market will commence.
President Lula stated this Thursday (17th) that if the regulation proposed by the federal government for virtual betting companies does not work, he will prohibit the sector’s operation.
“If the regulation handles it, the problem is solved. If it doesn’t handle it, I’ll put an end to it, to be very clear,”
he said in an interview with Rádio Metrópole, from Bahia, when asked about the subject.
He recalled having a meeting this month with 14 ministries to address the matter and that “either we definitively end [the sector’s operation] or we regulate it.”
According to President Lula, “you have no control over the more humble people, of children with a cell phone in hand, placing bets.” “We don’t want this [children with a cell phone in hand placing bets],” he stated.
In early October, Brazil published a list of 192 online bookmakers allowed to operate in the country.
According to a study by the Central Bank, Brazilians spend between 18 and 21 billion reais ($3.1-3.7 billion) a month on sports betting. One of the most alarming aspects of the analysis was the discovery that R$3 billion (16% of the monthly total) spent on gaming and betting in August came from Bolsa Família resources. Bolsa Família is a program aimed at providing financial assistance to socially vulnerable families in Brazil.
Retail entities, supported by IDV (Institute for Retail Development), have expressed concerns about the diversion of public resources. Retail companies fear that consumers will divert their disposable income to gambling, directly impacting their operations.
Sources: Valor International, iGaming Brazil