President Lula’s comments on banning betting have sparked an outcry from the licensed sector, warning against fuelling the black market. <\/p>\n
Brazil\u2019s President\u00a0Luiz In\u00e1cio Lula da Silva\u00a0is facing industry criticism after he\u00a0urged the government to\u00a0unite to ban online betting, in an address to the nation on Sunday for International Women\u2019s Day. <\/p>\n
During the speech<\/a> he describing gambling addiction as a \u201ctragedy\u201d for the nation.\u00a0\u201cAlthough most addicts are men, the burden falls on women,\u201d Lula said.\u00a0\u201cIt\u2019s\u00a0the money for food, rent and children\u2019s school that disappears on the cell phone screen.\u00a0\u00a0<\/p>\n \u201cGambling dens are prohibited in Brazil. It makes no sense to allow gambling to enter homes, indebting families through cell phones.\u00a0<\/p>\n \u201cLet\u2019s work together, uniting the government, Congress and the judiciary, so that these digital casinos don\u2019t continue to indebt families and destroy homes.\u201d\u00a0<\/p>\n Notably, it was Lula\u2019s government that regulated\u00a0online gambling in December 2023, with the licensed market going live on 1 January last year.\u00a0The legislation included a myriad of protective measures for players, including a recently launched national self-exclusion scheme.<\/p>\n Atucha\u00a0Strategic Advisory founder\u00a0and CEO\u00a0Ramiro\u00a0Atucha\u00a0told iGB on Monday that Lula\u2019s comments\u00a0were \u201cdisrespectful\u201d to investors in the Brazilian market,\u00a0warning their confidence in conducting M&A could be damaged.\u00a0<\/p>\n In\u00a0Atucha\u2019s\u00a0view,\u00a0it is\u00a0particularly\u00a0unjust for Lula to slam the sector, when licensees\u00a0have to\u00a0adhere to strict regulation in terms of\u00a0KYC and certification, while facing a hefty tax burden and a BRL30 million licence fee.\u00a0<\/p>\n He also cautioned that banning online betting would only drive players to the black market, telling\u00a0iGB: \u201cI struggle to believe that someone as smart as [Lula] will not know that the players are\u00a0going to\u00a0end up in\u00a0the\u00a0unregulated\u00a0market.\u00a0<\/p>\n \u201cAll the problems they are listing\u00a0are\u00a0to do with unregulated operators, not with regulated operators.\u201d\u00a0<\/p>\n President Lula\u2019s proposed betting ban shows \u2018misunderstanding\u2019 of legal sector <\/p>\n Meanwhile, Partner for Gambling & Crypto at Bichara e Motta\u00a0Advogados Udo\u00a0Seckelmann\u00a0said Lula had displayed a \u201cmisunderstanding\u201d of how the online betting sector works in Brazil.\u00a0<\/p>\n \u201cOnline betting has existed for years through offshore\/unlicensed operators; regulation under Law\u00a0No\u00a014,790\/2023 and the Ministry of Finance\u2019s ordinances \u2013 which occurred during his mandate and with his full awareness \u2013 was designed precisely to bring that existing activity under supervision,\u201d\u00a0Seckelmann\u00a0explained.\u00a0\u00a0<\/p>\n \u201cProhibition would not eliminate the market \u2013 it would simply push it back into the shadows.\u201d\u00a0<\/p>\n Both\u00a0Atucha\u00a0and\u00a0Seckelmann\u00a0agreed Lula\u2019s plans to ban online betting were unrealistic, especially\u00a0with the potential backlash and expected surge of\u00a0black market\u00a0activity.\u00a0<\/p>\n \u201cIn my opinion, the chances are limited,\u201d\u00a0Seckelmann\u00a0added.\u00a0\u201cReversing that system would require a new legislative process and broad political support, which currently seems unlikely.\u201d\u00a0<\/p>\n Atucha\u00a0concurred, saying: \u201cThe backlash of that, first in stopping the tax collection and revenues,\u00a0and second on lawsuits, is going to be huge, and it\u2019s going to establish a very negative precedent for any company considering investing in Brazil.\u201d\u00a0<\/p>\n