The federal government will intensify control over betting companies to better regulate the sector. From October 1st, companies without authorization will have their activities suspended. This measure is based on Law No. 14,790, sanctioned in 2023, which establishes conditions for the legality of operations.
This action is considered crucial to combat irregularities in the sports betting market. According to experts, they contribute to financial and psychological problems among bettors.
Thus, in an interview with Agência Brasil, Regis Anderson Dudena, Secretary of Prizes and Bets at the Ministry of Treasury, explained that the lack of regulation has been mainly responsible for these problems.
Dudena highlighted that regulation is essential to protect bettors and prevent criminal practices. He stated that, without proper regulation, the electronic betting market has become fertile ground for fraud and consumer exploitation. “The main problems the sector has are due to the lack of regulation,” he stated.
The secretary explained that the regulatory process will act on two fronts. Initially, removing agents who do not wish to follow established rules, which will help mitigate illicit practices.
Subsequently, closely monitoring the companies that requested authorization, ensuring that they comply with all legal requirements. “The regulation-authorization binomial attacks the problem in two ways: removing these most harmful groups and taking a closer look at these groups that will remain.” – he highlighted.
Immediate hardening and anticipation of deadlines
The decision to suspend the operations of companies that did not request authorization was brought forward due to the aggressive actions of some organizations that exploit bettors in an opportunistic way.
“At the request of Minister Fernando Haddad, we started a fine-tooth comb considering that, if the company even came to ask for authorization, we cannot recognize that it wants to adapt”, commented Dudena.
Therefore, this anticipation seeks to protect consumers from possible abuse. The ordinance that will come into force in October provides that unauthorized companies will stop operating immediately.
According to the secretary, the initial deadline was until the end of the year, but the need to act quickly made the federal government opt for a firmer stance.
The use of Pix as the main means of payment for betting was another topic covered in the interview. Dudena mentioned that, to pay for sports bets:
- Around 95% of transactions are via PIX
- Only 5% of transactions use credit cards
This raised discussions about the economic profile of bettors. However, the secretary considered that the volume of bets via Pix reflects the country’s social pyramid and does not necessarily indicate that only the lower classes are involved.
“I don’t know if it is possible to infer that the bettor’s profile is more popular. What we can say is that the payment method reflects the economic reality of Brazil”, commented Dudena.
But with data from authorized companies coming into force from January 2025, the government hopes to better understand the profile of bettors and the economic impact of the sector.
Sports betting industry advertising and responsible gambling
One of the regulatory challenges mentioned by Dudena is related to betting advertising. Law 14,790 gave the government the power to notify and take down illegal websites, in addition to controlling advertising by unauthorized companies.
The secretary highlighted that the focus is to prevent advertising campaigns from misleading the public, especially in the case of digital influencers and affiliates who promote online betting.
“Advertising cannot mislead, cannot lead to problems”, warned Dudena. The secretary also highlighted that the government is in dialogue with digital platforms and social networks to ensure compliance with the rules.
From January 1, 2025, the new advertising and responsible gaming standards will come into force. They will impose strict limits on betting promotion, especially to protect the most vulnerable public.
Another sensitive point addressed by the secretary was the practice of money laundering through betting. According to Dudena, more than a hundred companies are under government assessment for involvement in financial crimes, including fraud and schemes to exploit gamblers.
“We have seen, in cooperation with public security bodies, the use of the betting sector for money laundering,” he stated.
These crimes range from systemic fraud, which manipulates results to harm bettors, to platforms that pretend to be legitimate, but appropriate deposits made by players.
Although the secretary did not name the companies involved, he stated that the government is working with other inspection bodies to combat these practices.
The future of sports betting in Brazil
With Law No. 14,790 and stricter supervision from October 1st, the Brazilian government seeks a safe environment for the betting sector. The expectation is that the Betting Management System (Sigap) will provide detailed data, allowing a clear view of the economic and social impact of betting in the country.
For Dudena, the success of this regulation will be fundamental to ensuring that betting in Brazil is seen as a form of entertainment and not as a means of financial gain. “Betting is entertainment, it is not a means of making money, it is not supplementary income”, he concluded.
