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Brazil’s gambling sector faces fresh scrutiny after the Federal Public Ministry (MPF) announced a new inquiry into the Government’s failure to deliver a national self-exclusion system for bettors. The initiative had been a key promise during the rollout of Brazil’s regulated betting framework but remains unimplemented months after legalization took effect.
Good to Know
The MPF is focusing on what it described as the “inexistence of a system for self-exclusion by CPF,” referring to Brazil’s taxpayer identification number. Such a tool would enable individuals struggling with gambling addiction to ban themselves across all regulated betting platforms.
The measure was expected to be one of the cornerstone safeguards of the new betting law, intended to promote responsible gambling and protect vulnerable players. Yet, months after the framework came into force, no operational system has been launched, leaving self-excluded players able to open new accounts with different operators.
Regulators and public health advocates have voiced growing frustration over the delay, warning that the absence of a national exclusion database increases the risk of problem gambling—especially among lower-income groups, who are showing higher exposure to betting-related debt.
While the inquiry unfolds, the Ministry of Finance has issued a new normative instruction that grants operators an additional 30 days to comply with another consumer protection requirement: blocking beneficiaries of social welfare programs from accessing gambling platforms.
The extension follows repeated requests from operators who said integration between databases and verification systems required more time. The delay has fueled criticism from lawmakers who argue that social protections were meant to launch in parallel with the industry’s legalization.
The Lula administration continues to maintain that its regulatory strategy centers on responsible gaming, but implementation has moved slower than anticipated. Critics suggest that while the Government promotes a message of social responsibility, enforcement and oversight remain inconsistent.
At the same time, fiscal pressures on the industry are mounting. The Ministry of Finance is pushing for a tax rate increase from 12% to 18% on operators’ gross revenue, part of a broader revenue plan aimed at stabilizing public accounts.
Industry observers say both the tax proposal and the lack of a unified self-exclusion tool illustrate the Government’s struggle to balance regulation, social responsibility, and fiscal goals in a fast-growing betting market.
The MPF is examining why Brazil still lacks a national self-exclusion system that would let players block themselves from all licensed operators.
It helps players manage gambling addiction by ensuring that once excluded, they cannot register with other legal betting sites.
Yes, operators were ordered to block welfare beneficiaries from gambling but were recently granted 30 more days to comply.
Yes, the Government is considering raising the betting tax from 12% to 18% to boost public revenue.