Lula announces ban on online betting in Brazil
The text takes effect immediately upon its publication in the Official Gazette of the Union, but needs Congressional approval within 120 days to remain valid.
TL;DR
- President Lula has issued a provisional measure to ban online betting operations in Brazil, including sports betting and virtual casinos.
- The ban takes effect immediately upon publication in the Official Gazette but requires Congressional approval within 120 days.
- Online betting platforms must cease operations by October 6th, with measures to allow users to withdraw their funds by October 5th.
- The government plans to introduce a bill to criminalize online betting operations, with potential prison sentences and fines for operators and advertisers.
- This move signifies a policy reversal, as fixed-odds sports betting was previously authorized and regulated in 2018 and later expanded in 2023.
- The government's justification for the ban centers on the impact of online betting on family indebtedness and gambling addiction.
- A recent study indicated significant losses for Brazilian families to betting platforms, and a large majority of the public favors a ban.