Brazil has recently taken radical measures to regulate the online gambling industry, ending the era of near-total freedom that had reigned since the legalization of online betting sites in 2018. This initiative follows what Finance Minister Fernando Haddad has called a “betting pandemic”, illustrating the uncontrolled growth of this industry in Latin America’s largest economy.
At the heart of this tightened regulation is the closure of more than 2,000 betting sites, including those that sponsor top-flight football clubs such as Corinthians and other popular teams. In particular, the site Esportes da Sorte, sponsor of Corinthians, is no exception to this rule and is on the blacklist of suspicious domains identified by the Finance Ministry.
This action aims to stop fraud, money laundering and protect users, for example by prohibiting minors from betting. Indeed, the Brazilian government has decided to remove from the market all sites that have not adhered to the new regulations that will come into force in January, and to block their access as well as their advertising activities.
The Central Bank of Brazil estimates that 24 million Brazilians, or nearly one in nine inhabitants, participate in online gambling. This practice worries President Lula, who recently warned that many low-income Brazilians are finding themselves in debt because of betting. In doing so, these regulatory actions also aim to protect vulnerable players from this form of entertainment and limit its harmful effects on society.
In short, Brazil is adopting a stricter regulatory framework to supervise the online gambling industry, in order to combat abuse, prevent the risks associated with this practice and protect consumers. These measures mark a turning point in the way the country approaches the issue of online gambling, with an emphasis on transparency, legality and player protection.