Zona de Azar Brazil – Brazil: Lula to Meet to Discuss Betting Control Measures

Brazil – October 4, 2024 – www.zonadeazar.com A meeting is scheduled for today, October 3, between President Luiz Inácio Lula da Silva and the ministries of Finance, Health, Sports, Civil House, and Social Development to address the online betting and gaming market.

After weeks of planning, including a roundtable organized by Brazil and Spain, the president will take the stage to discuss effective measures following the release of the Central Bank (BC) study on Bolsa Família beneficiaries’ spending on betting.

The main expectation surrounding the meeting is the creation of a package of measures to prevent debt and support gambling addiction control, but the key focus is how to manage social program funds, such as Bolsa Família, being directed towards betting.

Furthermore, the meeting may also introduce effective bans on payment methods for betting sites, which are already legally anticipated with the sector’s regulation – for example, the debit card function.

Measures Proposed for Action by the Lula Government

In recent weeks, the main solutions discussed include a total ban on the use of credit cards for betting, starting in October this year instead of January 2025 – as only 3% of betting revenues come from credit cards, according to the National Association of Games and Lotteries (ANJL).

Additionally, the suspension of Pix and other instant payment methods until the official market regulation was also proposed by the president of the Brazilian Federation of Banks (Febraban) on Wednesday, October 3.

This alternative also includes blocking the debit card function, not only for Bolsa Família beneficiaries and other social programs, to prevent funds from being transferred to betting sites. This solution aims to limit secondary methods that a beneficiary might use to “mask” money being sent to betting sites through another card, without using the social program card.

For Roberto Campos, president of the Central Bank, separating credit lines from the betting market is “quite necessary.” “It doesn’t make sense for banks to be involved in betting. In our interpretation, it’s something that shouldn’t exist. But I believe it’s a government policy, and the government is working on it,” said the president on Wednesday, October 2.

Edited by: @_fonta www.zonadeazar.com