SBC News Voice of the Sports Betting Industry
President Inácio Lula da Silva will host a meeting of senior ministers to address outstanding concerns regarding the launch of the Bets regime, the federal framework to regulate fixed-odds betting and online gambling in Brazil.
The Ministers of Finance, Healthcare, Sports, Public Welfare, and Social Development will meet with Lula, today, to review the Bets regime’s progress towards its intended launch on 1 January 2025.
Lula seeks to address concerns following reports that beneficiaries of Bolsa Família, Brazil’s financial aid programme for poor families, had spent BRL 3bn (€500m) on betting platforms, with transactions recorded by the government’s Pix payment system.
An intervention is expected, as Lula will likely endorse the measure proposed by Febraban, the Federation of Brazilian Banks, which has called on authorities to adopt an instant ban on the use of credit cards and overdrafts for gambling transactions.
Furthermore, Lula will order the ministries to collaborate and develop new controls to prevent financial risks and debt, and to prohibit welfare payments, such as Bolsa Família, from being spent on gambling.
Febraban has volunteered to conduct an evaluation of the Bets market to assist the Ministry of Finance in collecting data and examine the impact of online gambling on Brazilian finances and spending habits.
The meeting follows the closing of the Bets licensing application window on 30 September by the Secretariat of Prizes and Bets (SPA).
Prior to the launch, the government will allow a transition period for operators that have qualified for licensing, as the Ministry of Finance published a preliminary list of betting companies allowed to operate in Brazil until 31 December 2024.
Out of 181 applications, the SPA and Ministry of Finance have authorised a total of 89 companies operating 193 brands. The Ministry and SPA excluded Esportes da Sorte, VaideBet, and Reals Bet, operators active in Brazil with exclusive media and Serie-A football clubs of Corinthians, Bahia, and Atletico-PR.
As reported by SBC Notícias Brasil, “the companies believe this to be a formal error and are in contact with SPA for correction. The Ministry of Finance is expected to update the list soon to address any possible information discrepancies.”
However, the excluded operator Esportes da Sorte is currently under investigation for money laundering, although the company denies all allegations.
The SPA will enter an enforcement period to terminate the activities of all unlicensed online gambling operators before the Bets regime is launched, with powers granted by Ordinance SPA/MF No. 1.475/24.
Finance Minister Fernando Haddad met with broadcasting and sponsorship representatives to discuss the marketing activities of betting platforms and defended the SPA, stating that the agency has the right to “clean up” the industry.
However, Haddad and the SPA have been warned that Serie-A football clubs and broadcasters are likely to appeal the exclusion of unauthorised operators, with multi-million-dollar contracts at stake if these companies cannot operate after 11 October, bringing a deadlock for Brazil’s legal courts.
Betting companies not on the official list will have their sites suspended from 11 October, and clubs must remove their logos.
Further licensing opportunities will be available to non-authorised companies following a 150-day waiting period, during which operators must cease all gambling activities in Brazil.
Elsewhere, the launch of the Bets regime sees the government come into direct conflict with Loterj, the state lottery of Rio de Janeiro. In September, Loterj won an appeal to continue authorising betting platforms within its state remit, regardless of federal developments related to betting.
The dispute highlights tensions between state and federal authorities over gambling laws, enforcement, and oversight, as Loterj has authorised six betting platforms, including the excluded operator Esportes da Sorte.
Loterj stands by its authority to grant independent licences, as a municipal enterprise of the state of Rio de Janeiro, raising funds for social and welfare programmes.
The outstanding tensions between the federal government and Loterj highlight the vulnerabilities of regulating Brazil’s pending online gambling market, with both state and federal authorities seeking to assert their control on licensing and betting duties.
As the Bets regime moves toward its 2025 launch, how these tensions are resolved will significantly shape the future of gambling regulation and its impact on Brazil’s economy and social welfare programmes, drastically sought by the PT government.
