Following reactions in the National Congress, including from PT members and its base, the Lula (PT) government has acelerated the timeline for legalizing online betting sites. New allegations surrounding these platforms have stirred action among parliamentarians and raised concerns within the Ministry of Finance, which has been working to regulate the sector since 2023. At present, any betting site is allowed to operate in the country.

This would only end in January 2025, in a kind of transition period defined by the government itself in the regulation. But a new ordinance from the Finance Ministry, issued this Tuesday (17th), moved that cutoff date to October.

Thus, companies that have not registered with the Finance Ministry to operate legally will not be allowed to operate from the 1st of next month. The government is already in talks with Anatel (National Telecommunications Agency) to take down the sites. Estimates suggest around 2,000 sports betting websites are currently active in the country. The new ordinance took the market by surprise, according to reports received by Folha. Even among companies already registered for regulation, there is an understanding that the rules changed during the game.

The move came after anti-betting movements in the political sphere. On Sunday (15th), Senator Omar Aziz (PSD-AM) announced he would bring the matter to the Attorney General's Office (PGR) to try to take down the sites until the companies are fully regulated. Aziz's action adds to a bill presented by the government's leader in Congress, Senator Randolfe Rodrigues (PT-AP), which proposes banning advertisements and sponsorships. Another bill in the Chamber of Deputies, by PT President Gleisi Hoffmann (PR), also provides for an advertising ban. The sector sees massive advertising as essential to the business, according to insiders. In an interview on Tuesday, Finance Minister Fernando Haddad spoke about the government's thorough review of the sector and linked the new ordinance to issues of psychological dependence on betting.

"Regulation has to do with the pandemic that is spreading in the country, and we need to start addressing it, which is this issue of psychological dependence on gambling," said Haddad.

By Nathalia Garcia & Paulo Saldaña