Starting Oct. 1, Brazil will tighten its regulations on online gambling, preventing companies from operating without proper authorization, according to an announcement by the country’s Finance Ministry. The new rules will also prohibit gambling operators from offering credit on their websites and ban consumers from using credit cards to place bets, as reported by Bloomberg.
The move comes as Brazil grapples with the growing social impact of gambling. Finance Minister Fernando Haddad described gambling-related financial problems as an “epidemic” in Brazil, emphasizing the urgent need for government intervention. “It’s becoming a serious social problem, and we have to face it,” Haddad said during a press conference in Brasilia.
Rapid growth of online gambling sparks government action
Online gambling was legalized in Brazil in 2018, and since then, participation has surged. Today, approximately 52 million Brazilians engage in online betting, with 25 million having started in just the past six months. This explosive growth has positioned Brazil as one of the fastest-growing gaming markets globally, drawing increased scrutiny from regulators.
To operate in Brazil, online gambling companies will now need to pay a fee of 30 million reais ($5.5 million). So far, 108 companies have applied for the necessary authorization. Back in April, it was reported that some of the biggest names in sports betting were eyeing the Brazilian market, hoping to capitalize on the country’s newly established regulatory framework for fixed-odds sports betting and virtual online gaming.
The stricter regulations in Brazil come at a time when the United States is also considering tougher rules for sports betting. A proposed U.S. bill aims to enforce minimum federal standards on advertising, affordability, and the use of artificial intelligence in states that permit sports betting. Similar to Brazil’s measures, the U.S. bill would also ban the use of credit cards for deposits, with a focus on addressing the public health impact of gambling and creating a safer, less addictive environment for consumers.
