Brazil: Sports Betting Faces Ban If Addiction Is Unchecked

Brazil is among the countries that legalized sports betting back in 2018. Despite legalizing the activity, the country never launched its betting market as lawmakers failed to establish the required regulations for years.

On the bright side, Brazil now aims to launch legal betting in January, after politicians finally focused on the issue. Yet, the country’s president reaffirmed he is prepared to end legal betting in case regulations prove to be ineffective and gambling harm isn’t addressed.

Betting Among Low-Income Families on Social Aids Raises Concerns

The regulation of sports betting is expected to deliver an economic boost for Brazil. Millions of dollars are expected to benefit the country in the form of license fees and tax proceeds. While benefits are one side of the coin, concerns are on the other.

This summer, a report revealing that an estimated $550 million was bet on sports by Bolsa Familia program members, raised concerns among lawmakers in Brazil. The aforementioned program provides vital support to low-income families.

The topic of banning Bolsa Familia program members from gambling activities was discussed during a Thursday meeting between the cabinet and Brazil’s President, Luiz Inacio Lula da Silva, Reuters reported. Despite the meeting, lawmakers did not reach a decision on the matter and no voting against or in support of the measure had taken place.

Ban on Betting May Be Enforced If Regulations Fail

Speaking to reporters on Lula da Silva revealed that the government in Brazil doesn’t want to ban gambling altogether. He explained that a blanket ban is unlikely to discontinue all gambling activities, pointing to the popularity of illegal jogo do bicho games and cockfighting.

However, the President acknowledged the importance of protecting customers from excessive gambling. Lula da Silva warned that he is prepared to effectively prohibit sports betting if the regulations do not ensure the safety and well-being of the gamblers. The President also explained that it is incompatible to have low-income families on social aid engage in gambling on sports.

“If regulation doesn’t work, I won’t hesitate in putting an end to (betting) definitively.“

Brazil President, Luiz Inacio Lula da Silva

Ahead of the launch of legal betting, Brazil warned illegal operators to cease operation from October 1. The country’s Ministry of Finance confirmed that betting operators failing to submit license applications will face suspensions at the beginning of this month.

With many operators considering the potential of the market in Brazil, hundreds of brands filed license applications. Overall, 89 operators were permitted to continue operating their 193 brands until the launch of the legal betting market. This transitional phase seeks to ensure that the operators are serious enough to do business in the country. Not unexpectedly, recognizable global operators, including Entain, Flutter, Betway, bet365 and Betsson showed interest in Brazil’s regulated market.