The topic of online betting began in Brazil in 2018, at the end of the Michel Temer government, with the legalization of the so-called 'Bets'. The law determined the regulation in two years, extendable for another two, but absolutely nothing was done to regulate the sector.
Society needed regulation, but between 2018 and early 2023, anyone who wanted to act, seriously or not, settled into a game without rules. Those who explored this type of business made money in the face of the Jair Bolsonaro government's failure to regulate the sector.
During this period, the betting industry grew rapidly. It became one of the mainstays of football, for example. At the beginning of the Lula government, the challenge was clear and urgent, but there were no simple solutions, due to the complexity of the inherited situation.
The Ministry of Finance has been dealing with the issue since early 2023, aware of the shortcomings of the 2018 law. A provisional measure was sent to the National Congress in July 2023, prohibiting bets for children and adolescents, and the advertising of unauthorized 'Bets', establishing the obligation for the operator to be incorporated in Brazil, in addition to paying a concession fee and taxes – with the provision of penalties that did not exist until then. That was when regulation began.
The same provisional measure introduced mechanisms to combat match-fixing, money laundering and concerns about gambling addiction. Congress did not convert the provisional measure, but incorporated its content into a bill, also initiated by the Executive Branch. The challenge was already great, but the members of parliament expanded the scope of fixed-odds betting, including a provision for online gambling to operate.
Although amended in relation to the government's proposal, the law approved in December 2023 granted the Ministry of Finance authority to regulate the betting sector. Thus, in 2024, the Secretariat of Prizes and Betting (SPA/MF) was created and a regulatory agenda was announced, providing for the complete regulation of the sector in six months. This was fulfilled, with the publication of ten ordinances by July of this year.
Essential rules were established, such as the obligation that transfers of funds involving 'Bets' occur only between institutions authorized by the Central Bank and the prohibition of the use of credit cards to avoid debt. Norms to prevent money laundering were created.
The SPA/MF action also established specific regulations on responsible gaming, requiring companies to identify all bettors and their profiles, with means of protecting their mental and financial health. In extreme situations, access to bettors under special supervision is prohibited.
The regulation addressed another sensitive issue, when dealing with advertising and the responsibility of digital influencers. It established that children and adolescents cannot participate in or be the target audience of advertising. It reaffirmed the importance of making it clear to the population that betting is not an investment, and does not guarantee easy money or enrichment.
Since last month, a strict filter has allowed the operation of 'Bets' "in the adaptation phase", involving only companies that had submitted an official request to the SPA/MF. The most recent list of regular companies to operate fixed-odds betting nationwide, up to December 31 of this year, lists 96 companies with 210 websites, respectively. The state lists have 18 companies.
On the other hand, a "negative list" was created, with more than 2,000 illegal, fraudulent and even criminal websites that will be blocked, as determined by the Minister of Finance, Fernando Haddad.
A broad effort is currently underway to advance the implementation of the regulation, ensuring protection for bettors, in constant cooperation with the Ministries of Justice, Health, Sports, Communications (through the National Telecommunications Agency) and the Attorney General's Office, in addition to the Central Bank. With transparency, collaboration and responsibility, there is now light on a scenario that for so many years was under an irresponsible blackout.
Regis Dudena
Secretary of Prizes and Betting of the Ministry of Finance
