The Ministry of Finance decided to adopt a much stricter stance in relation to the online gaming market, seeking to curb the expansion of betting in Brazil.
During a recent interview, minister Dario Durigan declared that the uncontrolled advancement of this sector creates a great inconvenience for the current management.
To deal with this complex scenario, the economic team plans to increase the tax burden and impose strict limits on advertising campaigns.
The government sees an urgent need to tighten administrative regulations rather than simply banning the activity.
“I fear that a blanket ban will leave us with an illicit market,” said Durigan.
Why the government compares the expansion of betting in Brazil to the cigarette industry
Although President Luiz Inácio Lula da Silva had already wanted to ban the platforms, the Treasury understands that previous administrations created a strong economic dependence on these companies.
The current strategy consists of applying guidelines similar to strict tobacco control, prioritizing the safety and financial health of the population.
“We need to treat bets the same way we treat cigarettes. As it is bad for health, as it is bad for Brazilians’ pockets, we have to tighten regulations”, stated Durigan.
The minister also highlighted that tax collection does not have the primary objective of filling public coffers.
This taxation serves to demand social responsibility from foreign platforms, ensuring that they respect national laws.
“It’s not enough for these companies to enter the country and not obey Brazilian rules”
“Bets pay taxes not because the government wants to collect taxes, but because we recognized that they had a presence in the Brazilian economy and had to start collaborating with the country”, he explained.
New task force promises to free up access to archived processes
The minister also rebutted criticism about the supposed lack of transparency in operators’ licensing documents.
He denied any attempt to hide information, justifying that previous refusals happened only to protect the businessmen’s private banking details.
To resolve the impasse quickly, the ministry organized a major interministerial action.
“What I asked is that, instead of receiving individual requests, take all the processes that have already passed through the secretariat, do a task, we ask the CGU to support us, we will proactively disseminate the data”.
