On September 30, Brazil's finance minister presented the government's plan to combat illegal gambling.

In a radio interview, Fernando Haddad said the ministry would take new measures to protect citizens from unlicensed gambling sites.

The announcement follows the government's decision last month to suspend the activities of operators who had not applied for a license since October.

Haddad said: "This week we will close sites that have not applied for formal regulation. The Treasury decision to immediately suspend unregulated betting is now in effect."

These actions have resulted in a significant increase in licence applications, bringing the total to 182.

The minister also stressed that illegal sites will be closed for not complying with laws approved by the National Congress.

As previously announced, the government will also impose a ban on the use of certain payment methods, including social security cards and credit cards.

Haddad added: “We will monitor the development (of gambling) to prevent two problems: those who bet a lot and win little may suffer from gambling addiction; and those who bet little and win a lot are often linked to money laundering. We must address the issue of public health and organised crime.”

A Long Road to Regulation

Haddad noted that Brazil's regulatory process would be long and complex, ultimately taking seven years from the first law passed in 2018 to market entry in 2025.

During that drawn-out period, the government spent years drafting technical regulations, but President Jair Bolsonaro failed to sign the proposed rules before the 2022 deadline.

Following the election of President Luiz Inacio Lula da Silva in 2023, gambling reform was revived. Following negotiations, lawmakers decided to include both online gaming and sports betting in the law. Haddad said: “The previous government had four years to regulate, but during that time it did not introduce a tax on betting. These companies made a lot of money in Brazil, and there were no regulations in place to protect players and society.”

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