SAO PAULO — Brazilian President Luiz Inácio Lula da Silva has banned online betting operations, citing growing concern over gambling-related debt and public-health risks.
The executive order took immediate effect on Sept. 25 but must be approved by Brazil’s Congress within 120 days to remain in force, Reuters reported.
Users will be able to withdraw remaining funds from betting accounts through Oct. 5. App stores and network providers must block the sites beginning Oct. 6, Finance Minister Dario Durigan said.
“We are facing a public health issue involving online betting. It is a serious problem,” Durigan said.
Brazil’s Finance Ministry estimates that households spend about 60 billion reais, or roughly $11.6 billion, on online betting each year. The sector generates about 10 billion reais in annual tax revenue.
Lula’s government also announced a household debt-relief program. It plans to spend 15 billion reais at a November auction to acquire as much as 150 billion reais in delinquent loans at discounts of at least 90%, according to Reuters.
Why It Matters for Azerbaijan
Azerbaijan permits sports betting through authorized operators, including through approved online platforms. Article 53-1 of the country’s Law on Physical Culture and Sports regulates the industry and prohibits the direct or indirect participation of minors.
Betting advertising is permitted under Azerbaijan’s advertising law, but outdoor advertisements for sports betting and lotteries must be placed at least 100 meters from children’s and educational institutions.
Azerbaijan does not publish gambling-addiction statistics directly comparable with Brazil’s spending data. The absence of a national figure, however, does not eliminate the risks for families or the need to measure them.
The World Health Organization says gambling can contribute to financial distress, poverty, family breakdown, mental illness and suicide. It recommends population-wide safeguards, including limits on advertising, mandatory loss controls, self-exclusion tools and effective regulation.
Brazil’s decision therefore poses a broader policy question for Azerbaijan: Is regulating access enough if the country does not measure gambling-related debt, addiction and harm to households?
Source: Vesti Baku