Legislation

Brazil – New rules will follow to tighten control over online industry says Ministry of Finance

Special adviser to the Ministry of Finance José Francisco Manssur announced that new regulatory ordinances will still be issued on a number of topics to further strengthen, monitor and provide control over the online gaming industry. These new rules will play a vital role in combating the rise of unregulated online slots which have become hugely popular in Brazil as they have been promoted by influencers.

One of the most popular is the “Jogo do Tigrinho” game (“Fortune Tiger”) which is based on the signs of the Chinese zodiac. In the state of Maranhão, the number of people suffering losses and huge gains obtained by influencers has led to a criminal investigation over alleged ties to organised crime and money laundering.

Manssur published a statement on his LinkedIn account covering the scope of the new ordinances and how they will help strengthen the market and provide player protection measures going forwards.

“No game will be allowed unless it clearly informs the bettor what the value of his prize will be if they win the bet. As a result slots that use the term “jackpot”, for example, will not be allowed.”

Manssur specifically mentioned the banning of the “Fortune Tiger” game.  According to Manssur authorized operators will only be able to offer online games that have been certified by specialized international entities and are registered with the Ministry of Finance.

“Certification obviously includes a commitment not to alter the bettor’s chances of winning. The control is so strict that a variation of less than one percentage point in the winning margin can lead to a game having its certification revoked. In other words, exactly the opposite of what currently is happening in this case,” he said.

Advertising he said will also be monitored. Meanwhile ‘“Abusive “influences”, with messages with content that are harmful to people, will be harshly combated,” he said.

Manssuur’s comments come after local press reported that  as many as 134 companies have expressed interest in acquiring a license in the Brazilian betting market after the Ministry of Finance opened a consultation in October last year.  The list of companies was published via radio station Itatiaia via its online news website. These brands will have priority when it comes to licensing requests. Among the interested parties was Loterias Caixa, the Brazilian National Lottery operator.