Ministry of Justice issues emergency order to 17 betting companies in Brazil

Aman Sharma November 5, 2024

SiGMA news

Brazil’s Ministry of Justice and Public Security has imposed a last-minute order on 17 online sports betting companies, demanding that they end their operations immediately. This move comes in response to increasing concerns about the impact of gambling on vulnerable groups, particularly after reports indicating a rise in gambling-related harm among recipients of the country’s social welfare programmes.

Deadline set as regulation looms

The targeted organisations, which include industry experts such as bet365, Betano, KTO, 1xBet, Parimatch, Sportingbet, Betnacional, and others, have been given 10 days to respond to the Ministry’s request. This action comes as Brazil inches closer to the launch of its highly anticipated online gaming and sports betting market, a sector that has been the subject of extensive debate in recent times.

The timing of this action coincides with the growing public outcry and pressure on President Lula’s administration over the social impact of gambling. A recent study showed that many individuals enrolled in the Bolsa Família social welfare program have been losing money to gambling, fuelling concerns about the societal consequences of a fastly growing gambling market.

In response, the Brazilian government started a crackdown on unlicensed online gaming sites, blocking over 2000 websites in the first two weeks of October. This follows a large pattern of legislative and regulatory activity aimed at compacting control over the industry and ensuring that it operates in a way that reduces harm to vulnerable citizens.

A rocky road to regulation

Brazil’s road to regulating online gaming and sports betting has been far from smooth. While the country successfully met the July deadline for releasing key regulations, the road to implementation has been fraught with uncertainty, especially as public opinion on gambling continues to sour. The government is now focused on re-evaluating certain aspects of its regulatory framework, particularly around responsible advertising and sustainable practices in the gambling sector.

Looking ahead

The Ministry of Justice’s latest request for information from key betting companies showcases that Brazil is taking a more vigilant and extensive approach to its gambling regulation. As the government works to assure that the market is both profitable and responsible, industry players are looking for additional scrutiny and potential changes to the regulatory landscape in the future. With the market opening just weeks away, the gambling sector in Brazil remains in a state of flux, with much still to be resolved before the full implementation of the laws.

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