Bank representatives ask Brazil's President Lula to set up a working group on online gambling

President Luiz Inácio Lula da Silva met on Wednesday (16) with the presidents of five major banks and the Brazilian Federation of Banks (Febraban) to discuss the government's proposals for the operation of online gambling in the country.

The meeting was organized by the Minister of Finance, Fernando Haddad, and also addressed the taxation of large fortunes and the regulation of the tax reform.

According to the Brazilian newspaper O Globo, the President of Febraban, Isaac Sidney, said that the meeting with Lula dealt with "the negative repercussions of the abusive use of online betting and gaming platforms."

According to the executive, the banking sector "is concerned" about the impact of the uncontrolled use of these platforms on the indebtedness of families. "We asked for the creation of a working group on gambling with the banking sector and the productive sector because there are implications for the economy, we want to delve deeper into this issue," said Sidney.

It should be noted that last week new rules imposed by the government for the operation of websites that run online gambling and sports betting came into force.

Meanwhile, like other segments, the banking sector had already shown its concern about the financial impact of online gambling companies on the income of Brazilians. In September, Sidney warned about a "default bubble" that would be forming amid the operation of gambling, especially among the most vulnerable families.

Isaac Sidney

"If it is not possible to immediately prohibit payment with Pix, at least set maximum limits for betting [on this means of payment], just as the Central Bank already limits transactions at night," he suggested. He added that it would be necessary, at the very least, to prevent the beneficiaries of social programs from using the Pix for gambling.

In addition to Sidney, the meeting was attended by Luiz Trabuco, chairman of the Board of Directors of Febraban; Marcelo Noronha, chairman of Bradesco; Milton Maluhy, chairman of Itaú Unibanco; Mário Leão, chairman of Santander; André Esteves, chairman of the Board of Directors of Banco BTG Pactual; and Alberto Monteiro, chairman of Banco Safra.

Pix and Bolsa Família

According to data from the Central Bank, there has been a significant increase in transfers through Pix to online gambling platforms, which have increased by more than 200% since January of this year.

Another relevant data was that, in August, Bolsa Família beneficiaries sent BRL 3 billion through Pix to gambling companies. This amount corresponds to 20% of the funds transferred by the social program that month.

The federal government is facing an impasse regarding the ban on the use of Bolsa Família for online gambling. Sources from the Ministry of Finance stated that, despite the seriousness of the situation, the discussion is not yet concluded and could be postponed until 2025, according to an article in Veja.