Article Credit:
This article was originally written by Vanja Mitic and published on news.worldcasinodirectory.com. We acknowledge their valuable contribution in providing the information and insights presented in this piece. For the full article, please visit.Source link
Brazil’s Finance Ministry is positioned to potentially generate up to R$3.4 billion (approximately US$ 620 million) this year through the regulation of online gambling. This revenue projection hinges on the approval of the authorization requests received during the initial licensing phase, as indicated by the Ministry of Finance. Regis Dudena, the head of the Secretary of Prizes and Betting (SPA), in a conversation with Estadão/Broadcast, noted that not all companies might meet the stringent requirements to operate within Brazil.
Revenue projections and regulatory challenges:
The SPA has processed 113 requests for authorization from various betting operators, termed as ‘Bets’ in Brazil. According to Games Magazine Brazil, the potential revenue of R$3.4 billion represents the upper limit of what could be realized if all these operators meet the regulatory criteria and pay the required authorization fee of R$30 million (US$ 5.4 million) each. Dudena elaborated, “The expectation is that not all of them will be (accepted), but we still don’t know if they will comply with all the rules to be called and also whether or not they will comply with this final requirement of paying the grant.”
The technical team at the SPA has already conducted an initial review of the submitted documents and has requested additional information from some companies to ensure compliance with all operational regulations.
Amid concerns about the potential social impact of online gambling, the Ministry is initiating measures to promote responsible gambling. Dudena emphasized the importance of public awareness, stating, “Part of the task force announced by the Finance Minister is to advance information in society, for example, about the very nature of gambling. Today, part of the population still does not understand that gambling is mere entertainment. Gambling is not a way to make money, gambling is not a way to supplement income, gambling is not a way to become more socially interesting.”
The government plans to launch three major awareness campaigns. The first campaign, scheduled for the following month, will focus on publicizing the companies authorized to operate in Brazil. This will be followed by a broader campaign, in collaboration with the Ministry of Health, to educate the public about the risks of indebtedness and the health impacts of gambling. In January 2025, a third campaign will introduce the list of companies that have received definitive authorization to operate, marking the start of intensified monitoring of online betting activities.
Historical context and future directions:
The move to regulate online gambling comes after the first law legalizing betting was approved in 2018. However, the previous government did not regulate the sector, allowing it to grow without state oversight. Dudena, who assumed his role in April after the secretariat was established in January, points out that the sector developed unchecked during this period.
Currently, the SPA has published ten ordinances regulating the betting market and is focusing on the processes of authorizing operations and supervising these companies. Dudena also highlighted the need for strict enforcement of advertising regulations, especially concerning the use of influencers on the internet, to ensure compliance and prevent irregular activities.
