This week, about 2,000 illegal websites will go offline. Additionally, the Federal Police is investigating money laundering by criminal organizations using the IDs of beneficiaries, which could inflate the numbers of those in debt.
The Ministry of Finance updated its list on Thursday (3rd) with all the online betting companies authorized to operate in Brazil until December. There are now 205 sites linked to 93 companies nationwide and another 22 with state licenses.
The 'Bets' excluded from the list released by the Ministry of Finance can no longer provide betting games in Brazil until they obtain final government authorization—except for betting houses operating with state concessions.
The Ministry of Finance recommends that users withdraw their deposited money from the betting sites that will cease operations. The deadline for withdrawing funds is October 10.
The Executive Secretary of Finance, Dario Durigan, stated that Lula authorized members of the ministry to engage with these authorized platforms "to impose the strictest possible restrictions on payment methods, which could include Bolsa Família."
"The concern to protect Bolsa Família, which is our primary focus, is being met by the blocking of these more than 2,000 sites, which is our expectation for next week, along with direct contact [with the companies] for a thorough review starting next week," he added.
Another measure the government expects will have an impact is the prohibition of credit card use for online betting.
The decision not to take action aimed at beneficiaries at this time was reportedly motivated by concerns about not stigmatizing them, as reported by the newspaper Folha. However, the idea is to wait and see the impact of the measures announced so far on the most vulnerable.
The main concrete measure from the meeting was the issuance of an order to create an inter-ministerial working group. Government members say this was the first of many meetings, with the next expected to occur in two weeks.
Minister Nísia Trindade (Health) compared the situation with 'Bets' to the anti-smoking campaign in Brazil. She mentioned a focus on mental health and psychosocial care, as well as suggesting a change in the international classification of diseases to include online gambling.
Ricardo Lewandowski (Justice) highlighted ongoing Federal Police investigations into money laundering involving 'Bets" companies. He also mentioned that the National Consumer Secretariat will investigate the presence of underage influencers promoting 'Bets', which is illegal.
At the beginning of the meeting, the president stated that the debt caused by online sports betting is a "dependency issue," a vice for gamblers.
Minister Fernando Haddad (Finance) subsequently presented to the Executive the forecast for the removal of 2,000 betting sites in the coming days following the publication of the list of companies authorized to operate by the ministry.
The initial estimate provided by the minister on Monday (30th) was that 500 to 600 sites would be taken down by the National Telecommunications Agency (Anatel). However, industry entities claimed that there are at least 1,500 illegal sites—almost all operated by foreigners without legal representation in the country. The addresses should start being blocked from the 11th.
"Many people are going into debt; many people are spending money they don't have, and we believe this must be treated as a dependency issue, meaning people are dependent and are becoming addicted," Lula said at the start of the ministerial meeting to discuss the topic.
"Beyond what has been regulated, I need to hear from the other ministries so that we can complete this regulatory process, as in the coming days, 2,000 sites will be going offline, becoming inaccessible to citizens within national territory," Haddad added.
The meeting was closed, but the initial statements were released by Secom (the Secretary of Communication of the Presidency). The meeting included representatives from at least six ministries in addition to the Ministry of Finance: Social Development, Health, Development, Industry and Commerce, AGU, Civil House, and Justice. The Director-General of the Federal Police, Andrei Rodrigues, also attended the meeting.
President Lula has expressed outrage over the impact of 'Bets' on the accounts of poorer citizens and the increase in debt among Brazilians. A technical analysis by the Central Bank showed that, just in August, Bolsa Família beneficiaries transferred R$ 3 billion (US$ 550m) to sports betting companies via Pix.
Source: FolhaPress
