Brazil's Finance Minister Fernando Haddad recently made a strong statement, saying that if it were up to him, he would completely ban online gambling. He bluntly stated, "No amount of tax can justify the legitimacy of gambling platforms."
Haddad described the current gambling craze as a "public health emergency," criticizing the previous government for its lack of regulation on gambling advertising and tax monitoring, leading to years of disorderly development and massive capital outflow in the industry. He noted that although the federal government has now established a relevant data system, the severity of the problems revealed is "heartbreaking."
He emphasized that this is not only a fiscal issue but also involves crime. He revealed that the Ministry of Finance has collaborated with the Central Bank and plans to involve the Federal Police to investigate illegal activities in online gambling, including the roles played by offshore platforms and fintech companies. These institutions are suspected of facilitating unauthorized betting and even connections with money laundering and organized crime.
Despite some industry organizations denying the accusations, Haddad remains firm in his belief that Brazil should not rely on gambling tax revenue, "We must fundamentally examine this issue to avoid betting the country's future on an industry with systemic risks."
