Ahead of the launch of its regulated online betting and gambling market planned at the start of next year, Brazil announced the formation of a new working group that will help tackle addiction, focus on preventing gambling harm and decrease problem gambling.

Work Group to Help Combat Problem Gambling

On Monday, the government confirmed that the group, dubbed Interministerial Working Group on Mental Health, Prevention and Reduction of Harm from Problem Gambling, was formed following an interministerial ordinance No. 37/2024. The working group includes members from the Ministries of Finance, Sports, Health, along with the Social Communication Secretariat of the Presidency.

A primary focus of the working group will be to prevent gambling harm and help develop policies for supporting individuals affected by problem gambling. The experts will also focus on how to deliver effective support to communities affected by problem gambling and improve the mental health of bettors.

The working group will have 60 days to discuss different approaches, policies and suggestions with the aforementioned ministries with meetings taking place every fortnight. The focus on the well-being of consumers comes amid growing concerns about the exponential expansion of gambling ahead of its regulation. “The group may reexamine administrative actions and public policies and make suggestions for regulatory action, or any other measure to reduce harm and address the problem, taking into account the powers of each ministry that are considered pertinent,” explains a government statement on the matter.

Not unexpectedly, the working group will be able to discuss the matter with private and public groups, as well as other stakeholders that may provide relevant information. The experts will also consider organizing educational, mental health or other campaigns that seek to warn about the dangers of excessive gambling and provide adequate support.

Brazil Implements Tough Restrictions on the Sector

The formation of the new working group and planned further changes comes in addition to efforts already taken by Brazil that seek to limit the negative impact of gambling. So far, the country has enforced a limit on the payment methods applicable for gambling activities and also introduced a ban on gambling with credit cards.

In addition, betting and iGaming operators would have to adhere to stringent know-your-customer policies, including effective age verification and facial recognition. The aforementioned framework not only seeks to strengthen the regulatory capabilities but also ensure the trustworthiness of the gambling sector while at the same time preventing financial crimes and combatting gambling harm.

Still, some industry experts remain skeptical of the restrictions, considering that Brazil’s gambling market has been looming without proper regulation for years. However, the announced regulatory changes in combination with the formation of the working group signals the government’s intention to protect consumers, ensuring a healthy and competitive online gambling sector that is free of harm.