The Federal Public Prosecutor’s Office (MPF) has opened an inquiry to investigate the policies for regulating online betting under the Lula government.

The investigation began with an administrative procedure aimed at verifying the routines adopted by the Ministry of Finance to monitor compliance with Laws No. 14,790/2023 and No. 13,756/2018 by companies that operate fixed-odds betting.

Beyond the regulatory aspect, the year-long inquiry seeks to verify the effectiveness of the public health system in treating and preventing pathological gambling. According to the Radar column in Veja magazine, the objective is to evaluate the federal government’s performance in overseeing the sector.

The decision by the Federal Public Prosecutor’s Office comes at a time of consolidation of the regulated iGaming sector in Brazil. Currently, there are 190 platforms licensed by the Secretariat of Prizes and Bets.

Legalised in 2018 by Law 13.756, sports betting went through a long process of discussions in the National Congress. In 2023, they were regulated and two years later formally began operating. The Secretariat of Prizes and Bets (SPA) established, through ordinances, all the criteria and obligations for operators.

SPA also defined methods for monitoring betting sites, controlling operations, and curbing the illegal market.

Legislation on the subject

Among the legal documents that guide the monitoring and oversight criteria for operators, the following stand out:

Ministry of Finance Ordinance SPA/MF No. 1,225, July 31, 2024  – Regulates the monitoring and oversight of activities related to the operation of fixed-odds betting lottery games and betting operators.

Ministry of Finance Ordinance SPA/MF No. 1,231, July 31, 2024  – Establishes rules and guidelines for responsible gaming and for communication, advertising, and marketing actions, and regulates the rights and duties of bettors and operating agents, to be observed in the commercial exploitation of the fixed-odds betting lottery modality referred to in Article 29 of Law No. 13,756, of December 12, 2018, and Law No. 14,790, of December 29, 2023.

Ministry of Finance Ordinance SPA/MF No. 1,233, July 31, 2024  – Regulates the sanctioning regime within the scope of the commercial operation of the fixed-odds betting lottery modality.

Rules were also defined regarding responsible gaming, advertising criteria, and measures to guarantee the protection of bettors:

Ministry of Finance Ordinance SPA/MF No. 1,231, July 31, 2024  – Establishes rules and guidelines for responsible gaming and for communication and marketing actions, and regulates the rights and duties of bettors and operating agents.

Interministerial Decree MF/MS/Mesp/SECOM No. 37, December 6, 2024  – Establishes the Interministerial Working Group on Mental Health and Prevention and Harm Reduction of Problem Gambling with the objective of planning actions for prevention, harm reduction and assistance to individuals and social groups in situations of problem gambling behaviour.

Original article: https://igamingbusiness.com/sports-betting/online-sports-betting/brazil-inquiry-betting-oversight-lula-government/