The Federal Public Prosecutor's Office (MPF) has initiated an inquiry to assess the regulation of online betting under President Lula's administration. This investigation stems from an administrative procedure aimed at scrutinizing the Ministry of Finance's processes for overseeing compliance with Laws No. 14,790/2023 and No. 13,756/2018 by companies involved in fixed-odds betting.
This year-long inquiry will not only focus on regulatory compliance but also aims to evaluate the public health system's effectiveness in both treating and preventing gambling addiction. The inquiry seeks to determine how effectively the federal government has overseen this emerging sector, as noted by the Radar column in Veja magazine.
This move by MPF comes amid the growing consolidation of Brazil's regulated iGaming market, which currently includes 190 licensed platforms under the Secretariat of Prizes and Bets.
Sports betting was legalized in Brazil in 2018 through Law 13,756, after extensive discussions in the National Congress. By 2023, the legal framework was fully regulated, allowing operations to commence two years later. The Secretariat of Prizes and Bets (SPA) has established detailed criteria and obligations for operators through various ordinances.
The SPA has also set forth methods for monitoring betting sites, ensuring proper operations, and fighting illegal market activities.
Key legal documents guiding the oversight of operators include:
– Ministry of Finance Ordinance SPA/MF No. 1,225, 31 July 2024: Controls the monitoring and oversight of activities linked to the operation of fixed-odds betting lottery games and operators.
– Ministry of Finance Ordinance SPA/MF No. 1,231, 31 July 2024: Details rules for responsible gaming, communication, advertising, and the rights and duties of bettors and operators pertaining to the fixed-odds betting lottery under Article 29 of Law No. 13,756 and Law No. 14,790.
– Ministry of Finance Ordinance SPA/MF No. 1,233, 31 July 2024: Outlines the sanctioning regime for operators within the fixed-odds betting lottery market.
In addition, regulations concerning responsible gaming and advertising standards have also been developed:
– Ministry of Finance Ordinance SPA/MF No. 1,231, 31 July 2024: Sets guidelines for responsible gaming and marketing actions, detailing the rights and responsibilities of bettors and operators.
– Interministerial Decree MF/MS/Mesp/SECOM No. 37, 6 December 2024: Creates the Interministerial Working Group on Mental Health and Problem Gambling Prevention, tasked with planning initiatives aimed at preventing gambling-related harm and offering support to affected individuals and communities.
