Brazilian gambling entities have shown great support for the federal government’s most recent initiatives aimed at combating illegal gaming, particularly from lenders paying out money to an illegal operator.
The Brazilian Institute for Responsible Gaming (IBJR) and the National Association of Games and Lotteries (ANJL) welcomed the government’s decision following President Luiz Inácio Lula da Silva’s recent decree introducing stricter enforcement tools against the illegal market and strengthening Brazil’s regulated betting framework.
According to the government, an estimated 25.2 million users in Brazil have participated on illegal gaming sites, illustrating the extent of the regulatory challenge.
The president of the ANJL, Plínio Lemos Jorge said:
The illegal betting industry exposes consumers to risks, evades taxes and generates unfair competition in relation to companies that comply with Brazilian regulatory requirements. The announced actions represent an important step in strengthening the regulated market. The advances are the result of an environment of dialogue and institutional cooperation that allowed us to gather information, develop tools and expand our understanding of the activities of illegal operators in the country.
IBJR additionally endorsed the government’s actions in this area and noted the addition of new requirements levied against banks, PayPal and other financial service providers and advertisers, with regards to illegal gaming. Disruption of the funding mechanisms is vital for weakening the illegal market and thirdly protecting consumers from illegal gaming.
Carlos Lima, president of the IBJR, said:
This causes an estimated loss of BRL10.8 billion per year to public coffers. These are resources that are no longer invested in priority areas for society. Initiatives like this represent a crucial step forward in the fight against illegality. In addition to strengthening public revenue, the measure directly contributes to increasing the safety of bettors. It also protects operators who act in accordance with the law. At the same time, it promotes the integrity and sustainability of the sector in the country, which operates under one of the most modern regulations in the world.
Both organizations reiterated their commitment to work with authorities toward a safer, 100% regulated betting business in Brazil. They stated that cooperation will be integral to reducing the influence of the illegal market.