Brazil to impose restrictions on payments for sports betting and online gambling

The Brazilian government, under President Lula, announced plans to introduce restrictions on payments for sports betting and online gambling, starting this week. The move comes as part of broader efforts to regulate the fast-growing gambling sector in the country. However, details on the specific measures are still under discussion.

The Ministry of Finance has scheduled discussions with legal sports betting operators in Brazil to address the payment restrictions. According to Dário Durigan, executive secretary of the Ministry of Finance, these talks will focus on authorized websites that continue to operate in the country.

Durigan stated that there are 190 authorized websites, and President Lula has approved the implementation of payment restrictions, which could potentially include limiting the use of government-issued payment cards like Bolsa Família.

"The Bolsa Família public is protected by the suspension of illegal 'Bets' and now by the fine-tooth comb that will be carried out on authorized companies," said Durigan. He added that no specific measures have been adopted yet for Bolsa Família beneficiaries, but their payment cards have not been suspended for gambling use. 

Dário Durigan

The government's decision to block unauthorized betting websites will take effect on October 11. Durigan added that blocking these websites will help establish clearer rules for online gambling, particularly for users of government aid programs. 

Concerns about the gambling industry have been rising, particularly following a Central Bank report revealing that Brazilians spend an average of BRL20 billion ($ 3.7 billion) per month on gambling through the Pix payment system.

Notably, in August, 5 million Bolsa Família recipients were estimated to have spent BRL3 billion ($ 550,000) on online gambling. This led to heightened urgency within the government to address the issue.

The Ministry of Finance is also working on a "negative list" of illegal gambling operators. This list will be shared with authorities, including the National Telecommunications Agency (Anatel), to facilitate the takedown of these websites.

Additionally, Minister of Justice Ricardo Lewandowski said the Federal Police are addressing criminal activities like money laundering associated with illegal gambling. He also stated that influencers who are minors would be restricted from participating in the betting industry.

Vice President Geraldo Alckmin and several cabinet ministers attended a recent government meeting where the gambling sector was a central focus. Lula expressed concern about the rise in gambling addiction, noting: "There are a lot of people getting into debt, a lot of people spending what they don’t have, and we think that this should be treated as a matter of dependency."

Fernando Haddad

Minister of Finance Fernando Haddad added that the government has implemented several ordinances to regulate the betting market, including rules on fair play, certification, financial oversight, and the prohibition of credit card use in online gaming.

The Ministry has already banned credit card payments for betting, a decision anticipated to take effect in January 2025 but brought forward by credit card brands, which voluntarily blocked the use of cards for betting earlier this year.

In the coming days, up to 2,000 unauthorized betting sites are expected to be removed from Brazilian cyberspace. This effort is part of a larger process initiated by the Ministry of Finance to regulate the gambling market, which will formally begin in January 2025. 

Haddad stressed the importance of collaborating with other ministries, such as Health, Social Development, and Justice, to fully address issues related to gambling, especially in connection to vulnerable populations like Bolsa Família beneficiaries.