The Central Bank (BC) is working with the government to crack down on fintechs operating illegal betting platforms, Finance Minister Fernando Haddad said in an interview Monday (21) in Brasília.
According to Haddad, after the initial period of regulation and data collection, an economic team from the ministry will present to President Lula a report with measures to curb the illegal practice of betting websites and platforms.
The measures, however, according to the minister, are not limited to fintechs and the illegal market, but also to the regulated market. Tougher rules regarding advertising are also expected to come into effect.
In this case, the rules would be similar to the existing restrictions on cigarettes and alcoholic beverages. These rules are being drafted by this team. Furthermore, the government promises to tighten the net on fintechs that are allegedly being used as illegal gambling vehicles.
Information on fintechs and illegal gambling will be presented to the president
“After the six months since the State seized this information, we’ll bring the data to the president’s desk and treat this as a serious public health issue. We’ll have to look at the advertising for this; you know that alcohol and cigarettes have extremely restrictive advertising. This thing about gambling, sports betting, we’ll differentiate, we won’t differentiate. Another thing: fintech that is serving as a vehicle for illegal betting,” said Haddad.
The Treasury Minister also stated that the Central Bank is receiving information about fintechs associated with illegal sportsbooks. He also stated that the Federal Police (PF) will be involved in this process.
“We’re already informing the Central Bank of fintechs that are potentially serving as vehicles for organized crime, money laundering, or worse. So there’s a lot to be considered. We’ll involve the Federal Police in this debate,” he concluded.
