Government and Congress study measures to contain addiction

Members of the government of Luiz Inácio Lula da Silva (PT) and their allies recognize that there was a rush to approve the law that regulates online sports betting (bets), sanctioned by the president on December 30, after being processed in Congress in the second half of last year. Now, the government and Congress are discussing measures to contain what has been described as a betting epidemic.

A package to combat online gambling addiction is being discussed in the government and could be presented this week. Among the measures under study are the reinforcement of financial education to prevent individuals from compromising their income. Public banks also participate in the discussions.

This Tuesday (1st), the government released the list of 88 companies bets – totaling 193 brands – which have already been authorized to operate legally in Brazil.

The Minister of Finance, Fernando Haddad, stated that the objective of the regulation is to address bets like cigarettes: without tax incentives and with taxation as part of the government strategy. “The government’s focus is to protect people. The line between entertainment and addiction can be very thin,” he said.

This Tuesday (1st), he stated that the government is discussing limiting payment methods for online betting and prohibiting the use of Bolsa Família resources on betting sites. President Lula supports this measure.

One of the main problems detected amid the growth in betting is the increase in defaults in banks and commerce, despite a scenario of a heated economy, with growth forecast close to 3% for the fourth consecutive year. The unemployment rate in August was 6.6%, the lowest rate for the month since the beginning of the historical series in 2012.

According to Solange Srour, director of macroeconomics for Brazil at UBS Wealth Management, the increase in the level of default is not consistent with a booming economy. She points out that the bets They can increase household debt and harm consumption, which was the main driver of economic growth in the first half of the year.

Sites that do not comply with the new rules will be taken down

The Treasury released this Tuesday (1st) a list of operating companies that requested authorization from the ministry and will be able to continue operating until December. According to the Betting Management System (Sigap), just over 180 companies made the request by Monday (30), the deadline established by the ministry. But the list published by the government consists of 88 companies betsfrom which 193 brands originated, which have already received authorization to operate throughout the country.

Initially, the government had given a transition deadline of January 2025 for companies to adapt to the new rules, but an ordinance published on September 17 brought this deadline forward to October.

The government asked the National Telecommunications Agency (Anatel) to take down up to 600 betting sites that did not request regulation. They are expected to go offline in ten days. Bettors registered on irregular platforms will have this period to redeem their balances.

The Prizes and Betting Secretariat of the Ministry of Finance intends, in the coming days, to send letters to the Federal Police and the Ministry of Justice to cross-reference data on betting companies, according to the Folha de S.Paulo. However, this action may face difficulties due to the lack of complete information on the topic. The initiative would serve as the basis for requesting the removal of irregular websites.

The National Consumer Secretariat (Senacon), linked to the Ministry of Justice, does not yet have a complete mapping of betting companies in operation. The Federal Police recently began a broader investigation into the market.

Haddad acknowledged that betting regulation was lax. The approval of the rules was part of an effort, last year, to increase revenue in 2024 and improve public accounts.

He also held Jair Bolsonaro’s (PL) government responsible for the “lack of control” in the sector, stating that, during the former president’s term, betting was exempt from taxes and without regulation.

Using Bolsa Família in betting is a topic of discussion

The Ministry of Social Development (MDS) created a working group to discuss the use of Bolsa Família resources in bets. The ministry states that income transfer programs were created to guarantee food security and meet the basic needs of people in vulnerable situations.

The action was motivated by a study by the Central Bank (BC), requested by senator Omar Aziz (PSD-AM), which analyzed the betting market and the profile of bettors. The survey revealed that, in August, around 5 million Bolsa Família beneficiaries sent R$3 billion to betting sites – the amount corresponds to around a fifth of the entire amount paid by the program in the month. The average expenditure per person was R$100.

Online betting generated, on average, R$21.1 billion per month in 2024, according to the Central Bank. Meanwhile, Caixa Econômica Federal lotteries generated a turnover of R$1.9 billion in the same period.

One of the proposals being studied by the government is to transfer ownership of the benefit in case of misuse in betswithout cutting the aid, but issuing a formal warning to the beneficiary.

The Minister of Social Development, Wellington Dias, proposed banning the use of the Bolsa Família card in betting, suggesting that control be carried out based on the bettors’ CPF.

The Central Bank continues to monitor the default risks associated with the increase in online betting. The consultancy KPMG Strategy&Innovation estimates that the betting market is expected to grow 89% between 2020 and 2024.

Another government strategy is to treat the betting problem as a public health issue. “It is a pandemic, given the appropriate proportions. Dependence is a serious consequence and needs to be treated by Health”, stated the Minister of Health, Nísia Trindade.

She defended market regulation and suggested the creation of awareness campaigns similar to those to combat tobacco.

Discussions in Congress should begin after the first round of elections

The president of the Senate, Rodrigo Pacheco (PSD-MG), stated that he intends to discuss restrictions on online betting after the first round of municipal elections, which takes place next Sunday. “Something needs to be done. We will evaluate the options right after the first round, in a leaders’ meeting,” said Pacheco.

The proposals include limiting or prohibiting betting by the elderly, those in debt, those registered in the Single Registry and beneficiaries of social programs. Limiting debt with online betting and banning advertising for this segment are also on the agenda.

In the Chamber of Deputies, projects were also presented that aim to prohibit the use of resources from social programs in betting, in addition to restricting the use of credit cards and online payments for betting.

The proposals presented must face a bench made up of 12 parliamentarians, from eight parties ranging from left to right. She was responsible for articulating the approval of the bill that regulated online betting, according to The State of S. Paulo. Parliamentarians are authors of amendments favorable to companies in the sector and would have acted to influence Ministry of Finance officials involved in betting regulation.