The minister said on Tuesday (17) that regulating betting sites has nothing to do with tax collection, but rather a matter of public health. The head of the economic team stated that the country is experiencing a “pandemic” of gambling addiction.
“It has nothing to do with tax collection. This has to do with the pandemic that is taking hold in the country and that we have to start addressing, which is the issue of psychological addiction to gambling,” he told reporters, when commenting on the new measures announced by the ministry.
Finance published an ordinance in the Official Gazette of the Union (DOU) that provides for the blocking, starting October 1, of fixed-odds betting sites that have not yet requested authorization to operate in the country.
“We are seeing the urgent need to start putting this in order and partnering with the Ministry of Health, there are many reports of health problems,” the minister highlighted.
According to him, the ministry is still working to solve the problems that have not yet been addressed, such as advertising on content.
Other measures include advertising controls and a ban on the use of credit cards or other forms of debt in online games.
The law regulating these bets was approved by Congress at the end of last year, but its full implementation depends on a series of legal steps.
The period for companies to adapt will last until the end of December only for those that are already operating in accordance with the country's rules.
As of January, all authorized companies will use the Brazilian internet domain, with the extension “bet.br”.
Concerns about debt and use of credit cards
Concerns about debt and the use of credit cards in sports betting are a priority highlighted by Minister Haddad.
In his statements, he mentioned that the government is aware of the risk that people will use credit cards to finance bets, which can lead to significant financial problems.
In addition, the minister emphasized that the regulation will seek to control and limit these practices to protect consumers.
Isaac Sidney, president of the Brazilian Federation of Banks (Febraban), also spoke out recently on the subject. Sidney defended the early prohibition of the use of credit cards to pay for sports bets, citing concerns about the impact of debt on Brazilian families.
Regulatory measures and combating addiction
Haddad described the gambling situation as a “pandemic” that needs to be addressed by the State. He emphasized that the regulation is not primarily aimed at collecting taxes, but rather at combating the psychological addiction that gambling can cause.
“The objective of regulation is to create the conditions so that we can provide support and address the issue of psychological addiction to gambling,” stated Haddad.
The current ordinance is just the beginning of a broader regulatory process that will include additional measures to ensure consumer protection and the integrity of the gambling sector.
Haddad mentioned that consultations will be held with civil society to strengthen regulatory actions and ensure that all issues related to gambling are addressed effectively.
The importance of advertising and sponsorship
Another important point mentioned by the minister is the issue of advertising and sponsorship of betting houses.
Regulation will address how gambling is promoted and sponsored, aiming to prevent aggressive marketing strategies from encouraging excessive gambling behavior.
Transparency in advertising and restrictions on gambling-related sponsorships are essential to minimize the negative impact on the population, especially the most vulnerable groups.
The role of civil society
Haddad also highlighted that regulating betting will require the collaboration of civil society to be effective. The involvement of non-governmental organizations, support groups and other stakeholders will be essential to ensure that the regulation meets the needs of all stakeholders and to monitor the effectiveness of the new measures.
“Our intention is not only to regulate, but to create a support network that involves different sectors of society. We need a collaborative approach to address the challenges that betting poses,” said Haddad.
The expected impact of the new measures
The new regulations are expected to have a significant impact on both betting companies and bettors. For companies, the need for regulation and compliance can pose operational and financial challenges. However, the measure is seen as an opportunity to establish a fairer and more transparent market.
For bettors, the new rules aim to offer greater protection and reduce the risks associated with gambling. The regulation hopes to create a safer and more responsible environment, where bettors can participate in a conscious and informed way.
Source: GMB
