Brazil's Finance Ministry has established a deadline for unlicensed gambling operators. Starting October 1, any online gambling business that has not submitted an application for a licence will be suspended. Those affected by the ban will be classified as illegal, but they will have until October 10, 2024, to return customer funds and close their accounts.
Currently, Brazil is processing 113 applications for online gambling licences, all of which must fulfill technical requirements and pay a fee of 30 million reais (approximately 4.8 million euros) by the end of the year.
In the meantime, the Brazilian Bank Federation (Febraban) is urging the government to expedite the prohibition on using credit cards for gambling transactions. Isaac Sidney, Febraban's president, expressed concerns about the potential rise in debt among individuals, stating, “We are very worried about the impact this could have on family income and the increase in personal debt.”
This concern is underscored by a recent survey by Hibou, which found that 68% of Brazilians engage in gambling, with 16% reporting financial difficulties due to this addiction. Among those facing such challenges, 32% admitted to selling personal belongings to settle debts, 29% turned to friends or family for loans, and 23% are still dealing with unresolved issues.
The official launch of Brazil's betting market is slated for January 1, 2025, the same date when credit card transactions for online gambling will be banned. In April, the Finance Ministry announced that the new regulations would also prohibit payments made in cash, bank receipts, checks, cryptocurrencies, or any means that obscure the source of funds.
