The Minister of Finance, Fernando Haddad, stated that the regulation of betting and bets is meant to address the "pandemic" of dependency on these games in Brazil. According to him, there will be a "thorough review" to adjust the websites to the advertising and sponsorship rules. The Ministry of Finance announced that it will also seek help from the Ministry of Health and that from October 1st, it will suspend fixed quota betting companies that have not requested authorization to operate in Brazil.
The minister said on Tuesday (17/9) that the regulation of betting sites is not about tax collection, but a public health issue. The head of the economic team stated that the country is experiencing a "pandemic" of game dependents.
“It has nothing to do with tax collection. This is about the pandemic that is installed in the country and that we have to start facing, which is this issue of psychological dependency on games”, he told journalists, commenting on the new measures announced by the department.
The Treasury published a decree in the Official Gazette of the Union (DOU) that foresees the blocking, from October 1st, of fixed quota betting sites that have not yet requested authorization to operate in the country.
“We are seeing the urgent need to start putting order in this and to associate ourselves with the Ministry of Health, there are many reports of health problems”, highlighted the minister.
According to him, the department is still working to solve the problems that have not yet been tackled, such as advertising about the content.
Among other measures are the control of advertising and the prohibition of using credit cards or other forms of indebtedness in online games.
The law that regulates these bets was approved by Congress at the end of last year, but its full implementation depends on a series of legal steps.
The period of adaptation of the companies will last until the end of December only for those that are already operating according to the country's rules.
From January, all authorized companies will use the Brazilian internet domain, with the extension “bet.br”.
Concern about indebtedness and use of credit cards
The concern about indebtedness and the use of credit cards in sports betting is a priority highlighted by Minister Haddad.
In his statements, he mentioned that the government is aware of the risk that people use credit cards to finance bets, which can lead to significant financial problems.
In addition, the minister emphasized that the regulation will seek to control and limit these practices to protect consumers.
Isaac Sidney, president of the Brazilian Federation of Banks (Febraban), also recently spoke about the topic. Sidney advocated for the anticipation of the prohibition of the use of credit cards for the payment of sports bets, citing concerns about the impact of indebtedness on Brazilian families.
Regulation measures and addressing dependency
Fernando Haddad classified the situation of bets as a “pandemic” that needs to be addressed by the State. He stressed that the regulation is not primarily aimed at tax collection, but rather at combating the psychological dependency that games can cause.
“The goal of regulation is to create the conditions so that we can provide support and address the issue of psychological dependency on games”, Haddad stated.
The current decree is just the beginning of a broader regulatory process that will include additional measures to ensure consumer protection and the integrity of the betting sector.
Haddad mentioned that consultations with civil society will be held to strengthen regulatory actions and ensure that all issues related to betting are addressed effectively.
Importance of advertising and sponsorship
Another important point mentioned by the minister is the issue of advertising and sponsorship of betting houses.
The regulation will address how bets are promoted and sponsored, aiming to prevent aggressive marketing strategies from encouraging excessive gambling behavior.
Transparency in advertising and the restriction of sponsorships related to betting are essential to minimize the negative impact on the population, especially the most vulnerable groups.
Role of civil society
Haddad also highlighted that the regulation of betting will require the collaboration of civil society to be effective. The participation of non-governmental organizations, support groups, and other stakeholders will be crucial to ensure that the regulation meets the needs of all involved and to monitor the effectiveness of the new measures.
“Our intention is not only to regulate, but to create a support network that involves different sectors of society. We need a collaborative approach to face the challenges that betting represents”, said Haddad.
Expected impact of the new measures
The new regulations are expected to have a significant impact both for betting companies and for bettors. For companies, the need for regularization and compliance may represent operational and financial challenges. However, the measure is seen as an opportunity to establish a fairer and more transparent market.
For bettors, the new rules aim to offer greater protection and reduce the risks associated with gambling. The regulation hopes to create a safer and more responsible environment, where bettors can participate in a conscious and informed manner.
Source: GMB
