This year, the Brazilian Ministry of Finance hopes to earn up to 3.4 billion Brazilian reais (approximately 620 million USD) from regulating online gambling.
The Ministry stated that this revenue forecast depends on whether the authorization applications received during the initial licensing phase are approved. Minister of Bonuses and Gambling, Regis Dudena, noted in an interview with Estadão/Broadcast that not all companies can meet the stringent requirements to operate in Brazil.
Revenue Forecast and Regulatory Challenges:
The SPA has processed 113 authorization requests from various gambling operators (known as "Bets" in Brazil). According to the Brazilian Gaming Magazine, if all these operators meet the regulatory standards and pay the required authorization fee of 30 million Brazilian reais (5.4 million USD), then the potential revenue of 3.4 billion Brazilian reais could be realized. Dudena explained: "It is expected that not all operators will be accepted, but we still do not know if they will comply with all the rules, nor if they will meet the final requirements for subsidy payments."
The SPA's technical team has conducted a preliminary review of the submitted documents and has requested more information from some companies to ensure compliance with all operational regulations.
Given concerns about the social impact of online gambling, the department is taking steps to promote responsible gambling. Dudena emphasized the importance of public awareness, stating: "Part of the special task force announced by the Minister of Finance is to disseminate information to the society, for example, about the nature of gambling. Today, part of the public still does not understand that gambling is just a form of entertainment. Gambling is not a way to make money, it is not a way to increase income, nor is it a way to enhance social fun."
The government plans to launch three major publicity campaigns. The first campaign is scheduled for next month, focusing on promoting companies authorized to operate in Brazil. Subsequently, the government will collaborate with the Ministry of Health on a broader campaign to educate the public about the risks of debt and the impact of gambling on health. In January 2025, the third campaign will announce the list of companies that have obtained final operating licenses, marking the beginning of enhanced monitoring of online gambling activities.
Historical Background and Future Directions:
The initiative to regulate online gambling was taken after the first gambling legalization law was approved in 2018. However, the previous administration did not regulate the industry, allowing it to develop without national oversight. Dudena took office in April this year, and the secretariat was established in January of this year. He pointed out that during this period, the industry's development was uncontrolled.
Currently, the SPA has enacted ten decrees to regulate the gambling market and is focused on the authorization and supervision processes of these companies. Dudena also emphasized the strict enforcement of advertising regulations, especially those concerning the use of influential figures on the internet, to ensure compliance and prevent illegal activities.
