Zona de Azar Brazil – Brazil: Ministry of Sports Exposes Deceptive Betting Scheme

Brazil.- November 20, 2024 www.zonadeazar.com The Ministry of Sports has revealed the existence of a network comprising 53 accounts and 25 YouTube channels promoting online sports betting with promises of easy profits, while omitting the associated risks.

The complaint highlights that these practices pose a significant threat to the public economy, prompting the ministry to request the Ministry of Justice and Public Security to intensify investigations. The Federal Police may also become involved if evidence of financial crimes or criminal organization emerges.

The investigation, led by the newly created National Secretariat for Sports Betting and Economic Development of Sports, uncovered the involvement of digital influencers, advertisers, and developers in a potential parallel market scheme. The accused sites reportedly collected money from bettors but failed to pay promised prizes, vanishing with the funds after shutting down their platforms.

YouTube as the Scheme’s Hub

The reported channels attract audiences exceeding 100,000 viewers per broadcast, leveraging influencers to lend credibility to these practices. The Ministry of Sports emphasized the central role of these figures in encouraging deceptive betting, warning about its negative impact on the population’s mental and financial health.

Regulation as a Solution

To counter abusive practices, the federal government is advancing in regulating the betting market. By the end of 2024, the Ministry of Finance will finalize its review of applications from companies seeking authorization to operate in Brazil. To legally operate, each company must pay a fee of R$ 30 million and comply with strict rules, including:

• Certification and anti-money laundering measures.
• Mandatory use of the national financial system.
• Prohibition of transactions via credit cards.
• Protection for minors and vulnerable individuals.
• Responsible advertising.

From January 1, 2025, only authorized companies will be allowed to operate in the country, ensuring greater transparency and safety for bettors. According to the Secretariat for Prizes and Betting, 100 companies are ready to operate nationally, along with 26 authorized at the state level.

President Lula Reaffirms His Commitment

In a recent statement, President Luiz Inácio Lula da Silva stressed that if regulation fails to ensure financial and emotional protection for Brazilians, he might shut down the digital sports betting market in the country.

The government remains committed to creating a fair and secure betting environment, combating deceptive practices, and prioritizing the well-being of its citizens.

Edited by: @_fonta
www.zonadeazar.com