Brazil’s finance minister, Fernando Haddad, recently announced that he will take 500 to 600 sports betting websites offline this October. This is as the government accelerates its regulatory crackdown. Soon, authorities will ban companies that failed to file for authorization by the September 30 deadline from operating in Brazil.
At least three of the five largest networks in the country have raised concerns about the proposal by Haddad. This proposal aims to restrict advertising by bookmakers on open television stations.
The most impacted by the measure are Record, Band and RedeTV!. They have significant collaborations with betting companies. Furthermore, they depend on the amounts paid to enable the transmission of sporting programs and events.
Among the most affected is Record. A betting house sponsors the reality show A Fazenda 16 and the broadcasts of sporting events, including football games. This sponsorship makes them some of the most prominent programs on the network.
The Finance Ministry released a list of 111 companies that had applied for authorization last October 2, some of which operate numerous brands.
A sponsor of major professional football teams and the subject of a Federal Police investigation into money laundering. Particularly absent from the list is Espostes da Sorte.
Since its legalization in 2018, the sports betting industry has exploded in Brazil. Pressure has been mounting on President Luiz Inácio Lula da Silva‘s administration to impose stricter oversight.
Ads from betting platforms have flooded Brazilian television and football stadiums, as highlighted by The Brazilian Report in late 2022. Two major companies, Betnacional and Pixbet, aired commercials during the 2022 World Cup. Meanwhile, competitor Betano sponsored the top newscast of the country, Jornal Nacional.
Head of banking association Febraban, Isaac Sidney, has encouraged the government to bring forward its planned ban on credit card payments for gambling. It is set to take effect in early next year.
