President Luiz Inácio Lula da Silva will be involved in the process of regulating sports betting and online gaming. The government has already expressed concern about the issue and must intervene.
Next week, Lula will announce measures to promote the mental health of bettors and restrict advertising by online bookmakers.
Planned measures that should be announced by Lula
The Ministry of Treasury, in collaboration with the Ministry of Health and Social Development, is finalizing the details of the announcement. Among the basic guidelines are some restrictions that can have a significant impact on the area.
The measures proposed by the government include:
- Prohibition of the Use of Cards. Prohibition on the use of credit cards and the Bolsa Família card to pay for bets. It is worth noting that companies in the sector anticipated and voluntarily announced the ban on this form of payment.
- Responsible Advertising. Obligation to display responsibility advertisements in bookmaker commercials. Then, the government will ban campaigns that suggest that gamblers can get rich quickly.
- Restriction of Bolsa Família beneficiaries. The government created the Bolsa Família benefit to help with food and basic needs for the poorest families. Therefore, some restriction must be created on who uses the benefit to place sports bets.
The government’s intention is to protect consumers and ensure a healthier environment for betting.
Around 500 betting companies may cease to operate
The timing of the announcement is not mere chance. From next Tuesday (October 1st), only the 113 authorized betting houses will be able to operate in Brazil. The government will analyze requests for regularization in around 30 days. Approved companies will need to pay a fee of R$30 million to remain on the market.
On the other hand, around 500 companies operating in the market will have to close their activities with the new regulations. Thus, the government seeks to provide greater consumer protection and a safer and more transparent environment for bettors.
Thus, at the request of the CNC (National Confederation of Commerce in Goods, Services and Tourism), minister Luiz Fux, of the STF (Supreme Federal Court), called a public hearing to discuss issues related to sports betting and online games. The event will take place on November 11th and will bring together important government and community representatives.
Furthermore, the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Legal Gaming (IJL) proposed an intersectoral meeting in response to the manifesto of retail and services entities. The aim is to discuss concerns about betting, and propose concrete measures for successful regulation.
“Brazil is about to have robust and responsible regulation, which will be among the best in the world,” said ANJL and IJL in a statement. The Brazilian Institute of Responsible Gaming (IBJR), which represents 70% of operators operating in the country, also spoke out and reaffirmed its commitment to the best market practices.
