Brazil’s Finance Minister Would Support iGaming Ban
Brazil’s Finance Minister Fernando Haddad stated in an interview with economist Eduardo Moreira that he would support a bill to ban online gambling if such a proposal were introduced in the Chamber of Deputies.
Why Haddad Opposes iGaming
Public Health and Ethical Concerns
Fernando Haddad called the rise of online betting a “tragedy” and a “public health crisis.” He emphasized that no tax revenue could justify the current “chaos” in the country’s online gambling sector.
The minister said the issue was so serious that he would support a full federal ban on iGaming.
Lack of Regulation and Capital Flight
Haddad blamed previous administrations for failing to regulate advertising and taxation of online gambling over the past four years. According to him, this allowed more than $7.2 billion to be funneled offshore.
Such capital flight undermines Brazil’s economy and facilitates opaque financial schemes.
Plans for Tighter Oversight
Involving Federal Police
The minister announced plans to involve the Federal Police in investigating possible connections between fintech firms and money laundering through illegal betting operators. This could trigger broad investigations and criminal proceedings against some iGaming-linked entities.
Impact on the Fintech Sector
During the interview, Haddad also noted that financial technologies may be exploited to avoid taxes and transfer funds abroad illegally—posing a threat to the integrity of Brazil’s digital payments infrastructure.
Haddad’s Stance in the Context of Current Policy
The minister acknowledged that his views are stricter than those of other government members, but he believes radical action is necessary. He argued that without a complete ban, transparency and order in the online gambling sector are impossible.
Financial Risks
Haddad stressed that the economic benefits from taxation cannot offset the risks associated with:
- growing addiction to betting,
- increasing cases of personal bankruptcy,
- financial crimes involving illegal operators.
The Future of iGaming in Brazil
Potential Ban on the Horizon
While a ban is not yet in place, Haddad’s statement could serve as a catalyst for a legislative initiative in the Chamber of Deputies. If such a bill is introduced, the finance minister’s support could significantly boost its chances of passing.
How the Market Could Change
| Current Situation | With a Full Ban |
|---|---|
| $7.2B in offshore outflows | Halting financial outflows to tax havens |
| Lack of oversight and taxation | Complete shutdown of illegal operators |
| Fintech firms under suspicion | Strict scrutiny of digital payments |
Conclusion
Fernando Haddad has taken a firm stance against online gambling, viewing it as a threat to both the economy and public health. His statement could have a major impact on the future of the industry in Brazil.
If the Chamber of Deputies considers a ban, the minister’s endorsement could be a decisive factor in the fate of iGaming in the country.