Government prepares executive order to ban betting in Brazil, sources say.
The federal government is preparing a Provisional Measure (MP) to ban betting in Brazil. Participants in a meeting held this Wednesday (September 23) at the Palácio do Alvorada reported that the signing of the document could take place this week.
The decision directly affects companies in the sector, which paid R$ 30 million in fees to operate in the country for five years. The government rules out returning any part of this amount. According to reporting by Túlio Amâncio of SBT News , President Luiz Inácio Lula da Silva considered prohibiting only online casinos and keeping sports betting operational, but opted for a broader measure.
The change of position came after an internal assessment that it would be necessary, in the words of a member of the discussion group, to "nip the problem in the bud." Lula reportedly requested at the meeting this Wednesday (September 23) that the Minister of Finance, Dario Durigan, present within 24 hours a complete survey on the budgetary impact of the ban. Durigan also called a meeting with the Secretariat of Prizes and Betting to discuss the issue.
Debts and illegal gambling
The government is studying ways to hold betting companies accountable for debts incurred by over-indebted users. One of the alternatives under consideration is filing a lawsuit to collect the amounts directly from the operators.
The Attorney General's Office (AGU) and the Ministry of Justice are working together on measures to prevent illegal gambling from occupying the space left by legalized betting establishments. Among the possibilities is the tightening of penalties for those who promote illegal gambling. Current legislation, provided for in the Law of Criminal Offenses, establishes simple imprisonment of three months to one year, in addition to a fine, for anyone who operates gambling in a public place or a place accessible to the public.
Impact on football clubs
Football clubs are another sector directly affected by the measure. Since Lula signaled his intention to end betting, sports organizations have been pressuring the government. To reduce the impact, the government plans to propose a negotiation table with representatives of the clubs.
The return of the concessions, however, is not on the table. A government source summarized the official position: "It was a gamble the companies took, they've already made a lot of money, and now they've lost."
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