SAO PAULO (AP) — Brazil on Friday began blocking more than 2,000 gambling websites labeled illegal as part of a government effort to regulate the sector after growing concerns about gambling addicts, especially vulnerable people.
Authorities have begun enforcing a law signed by the president Luiz Inácio Lula da Silva in December 2023, regulating and taxing gambling companies.
There are currently 96 active companies that own 210 gambling websites. The federal government said in a statement that these companies have shown willingness to comply with the new legislation and can operate until the end of the year while their permit applications are assessed.
Starting Jan. 1, 2025, companies that receive operational approval will have to pay 30 million reais ($5.3 million) and permanently comply with federal rules to curb fraud, money laundering and abusive advertising in order to stay in business.
Dario Durigan, executive secretary of the Ministry of Finance, said the government expects to protect the integrity of players with these measures.
Brazil allowed online gambling in 2018, but the lack of regulation has raised concerns among financial and health authorities. Psychiatrists have reported an increase in gambling addiction, while banks have noted an increase in related expenses.
The Central Bank of Brazil estimates that Brazilians wager about 20 billion reais ($3.5 billion) on bets every month. This also applies to the beneficiaries of the money transfer federal welfare program Bolsa Familia (Family Grant), who spent 3 billion reais ($530 million) on online gambling in August.
At the end of September, the federal government announced plans to take measures to prevent social benefits from being used for gambling. These programs are designed to ensure food security and meet the basic needs of vulnerable families.
