Regis Dudena Explains Why Betting Is Considered a Public Service in Brazil

Brazil.– October 29, 2025 – www.zonadeazar.com During a conference held at the School of Advocacy of the Brazilian Bar Association of Minas Gerais (OAB-MG) in Belo Horizonte, Regis Dudena, Secretary of Prizes and Betting at the Ministry of Finance, stated that online betting in Brazil is not a private activity under free competition, but rather a public service granted by the State.

The statement reinforces Brazil’s unique regulatory approach, where betting operators act under government authorisation, following the framework established by Law No. 14.790/2023.


Overview

Dudena presented the regulatory structure implemented in 2024, explaining that sports betting and online gaming are classified as lottery activities under Brazilian law.
This classification subjects the sector to public law principles, meaning that only entities authorised by the State can operate legally.

“We are not dealing with a simple private business under free competition,” said Dudena. “This activity occurs through a State concession. The private operator acts as an extended arm of the State.”

He also clarified that the Secretariat may deny or revoke authorisations whenever there are doubts about an applicant’s integrity or potential risks to the public interest.


Details and Context

The Secretary emphasised that the new regulatory framework was created to address two key negative externalities:

  • Social and financial risks, such as money laundering and fraud prevention.
  • Public health concerns, including gambling addiction and excessive debt.

According to Dudena, historical bans on gaming have proven ineffective in protecting citizens:

“What history has shown us is that prohibition did not protect people. Regulation exists to protect them — even from themselves.”


Operators’ Responsibility and Player Protection

Dudena highlighted that the concept of responsible gaming should not place the burden on the bettor but on the operators, who must adopt mechanisms to identify and mitigate risk behaviours.

“It is common to think that responsible gaming means player responsibility. But as regulators, we say this responsibility lies with the betting operator.”

Brazil’s model rejects generic restrictions on time or spending, requiring individualised controls instead.

“A low-income young person and a wealthy retiree should not have the same limits. But both must be protected,” said the Secretary.

The regulation mandates CPF verification and facial recognition to prevent minors from gambling, and only financial institutions authorised by the Central Bank may provide services to licensed betting platforms.


Certification and Enforcement

All online games offered in Brazil must be certified by independent laboratories accredited by the Ministry of Finance, ensuring systems are fair, auditable, and secure.
Dudena mentioned the adaptation of the popular “Jogo do Tigrinho” under the fixed-odds model as an example of compliance with the new rules.

The authorisation process for national operators requires over 100 documents, a security reserve of R$ 5 million, and a licence fee of R$ 30 million.

“It was necessary to separate the wheat from the chaff — to identify who wants to operate legally and who relies on informality or crime,” said Dudena.


Legal and Institutional Perspectives

Frederico de Assis Faria, President of the OAB-MG’s Commission on Betting, Gaming, and Lotteries, praised the technical precision of the presentation:

“Secretary Dudena’s detailed explanation clearly establishes that fixed-odds betting constitutes a public service concession, fully subject to administrative law.”

He also noted that strict control of payment systems, compliance verification, and operator responsibility are essential for the sustainable development of Brazil’s regulated market.

“In this new scenario, the legal profession emerges as a key pillar supporting the rights and interests of both operators and players.”


Future Outlook

Brazil’s regulatory approach represents a paradigm shift in Latin America, balancing market opportunity with social responsibility.
By defining betting as a public service, the Ministry of Finance positions Brazil as a regional leader in integrity, oversight, and responsible innovation within the gaming sector.


🔗 Edited by: @_fonta www.zonadeazar.com

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