ANJL has announced the creation of the ANJL Compliance Seal, a certification that will signal which betting platforms are committed to regulatory compliance. This certification will be available to betting houses applying for a federal license through the Secretariat of Prizes and Bets (SPA) of the Ministry of Finance. A further iteration of the seal, to be launched next year, will differentiate fully licensed operators from those still in the process of obtaining their licence and from illegal operators.

Brazil’s gambling industry is at a critical juncture, facing regulatory hurdles, taxation issues, and the ongoing fight against illegal operators. SiGMA News was on the ground at a press conference yesterday where Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL), stressed the immediate need for reform. He highlighted the importance of creating a secure, competitive market. During the press conference, Jorge explored the pressing issues of data transparency, taxation, and the crucial role of advertising in distinguishing legal operators from their illegal counterparts.

Despite the fact that Brazil’s new betting domain, bet.br, is set to launch on 1 January 2025, this seal will give bettors a reliable method of identifying legitimate operators in the interim. It is a vital step in establishing trust in a market where unregulated competition remains a significant issue.

Discrepancies in government data

Plínio Lemos Jorge raised several red flags concerning inconsistencies in data released by Brazil’s Central Bank, particularly regarding the use of social welfare funds for gambling. According to a recent study, 80% of all bets were made by Bolsa Família recipients, a statistic that Jorge found dubious. He noted that 90 percent of Bolsa Família beneficiaries are women, while only 5 percent of the bets tracked were made by female participants. This discrepancy points to possible underage use of accounts, highlighting the need for better oversight and transparency. Jorge stressed that ANJL requires full access to this data to conduct a more thorough and accurate analysis.

Taxation and the threat of illegal operators

A major concern for the industry is Brazil’s high tax burden on gambling, which Jorge believes could inadvertently benefit illegal operators. He warned that if the effective tax rate exceeds 50 percent, licensed platforms may struggle to compete against unregulated sites, which face no taxation or social responsibilities. Without a balanced tax regime, players may migrate to these illicit platforms, undermining the legal market.

The difficulty in curbing illegal operators was also discussed. Many of these sites are based in countries like Russia and China, making them hard to block. They frequently change URLs and continue operations despite local restrictions. Jorge suggested that the government should adopt continuous monitoring, particularly by targeting the payment systems used by these sites, to reduce their appeal and accessibility.

Role of advertising in market regulation

Jorge emphasised the importance of advertising as a tool for distinguishing regulated platforms from illegal ones. As Brazil’s betting market matures, advertising becomes crucial in educating players about legal options. Jorge pointed to Portugal as a cautionary example: stringent advertising restrictions there have allowed the illegal market to capture 50% of all bets. The lesson is clear—while regulation is necessary, it should not stifle communication between operators and consumers, as this only drives bettors underground

ANJL signs agreement to tackle gambling addiction

In another significant step forward, Jorge said that ANJL signed a Technical Cooperation Agreement with Somente S.A., aimed at addressing compulsive behaviour or gambling addiction among Brazilian players. The Gambling Addiction Research and Prevention Programme will offer both in-person and virtual psychological support to gamblers struggling with compulsive behaviours. Initially, the programme will focus on communities such as Paraisópolis, Heliópolis, and Nova Jaguaré, providing 1,000 in-person consultations and 20,000 virtual consultations nationwide.

This initiative also serves a dual purpose: it will collect crucial data on gambling addiction in Brazil, offering insights into risk factors and enabling the development of targeted prevention and treatment strategies. Such a comprehensive approach positions ANJL as a leader in responsible gambling measures, addressing a growing social concern as the betting market expands.

Regulator calls for collaboration with legal operators

Jorge concluded by highlighting the importance of collaboration between legal operators and government regulators. In countries with effective regulation, operators are incentivised to report illegal activity, helping to protect the industry as a whole. Brazil, he argued, must follow suit by fostering a cooperative environment that benefits both the government and responsible operators.

In sum, ANJL’s initiatives, from its mental health programme to the introduction of the ANJL Compliance Seal, mark critical steps in ensuring a safe, regulated, and competitive betting environment in Brazil. Yet, the challenges of high taxation, illegal operators, and regulatory enforcement remain pressing issues that require coordinated action between the government and industry stakeholders.

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