The government will scrutinize the possibility of iGaming following rumors of organized crime involvement
Brazil is making it increasingly difficult to legalize gambling, with new inquiries and scandals raising concerns about the potential risks. A parliamentary commission has been formed to investigate possible links between online gambling and criminal organizations involved in money laundering. This inquiry, set to conclude in 130 days, comes as Brazil prepares to launch its regulated sports betting and iGaming market on January 1, 2025. However, the market rollout has been tainted by a recent money laundering scandal involving a major betting operator.
Senator Soraya Thronicke from the Podemos Party has been vocal about the issue, stating that the rise of gambling has contributed to various social problems, including crime and family separations. Thronicke, along with 11 other full members and seven rotating members of the commission, will lead the inquiry with a budget of R$110,000 (US$20,000). They plan to scrutinize not only criminal connections but also the role of online influencers in promoting illegal activities in the gaming sector.
One such influencer, Deolane Bezerra, was arrested in September as part of the government’s Operation Integration, which aims to tackle money laundering linked to online gambling. The investigation will also look into allegations that some operators have rigged their software to increase profits unfairly.
Senator Dr. Hiran Gonçalves emphasized the difficulty of regulating online gambling, especially when operators use cryptocurrencies and are based in tax havens. He called for more protection for Brazilians and greater oversight of the industry.
The Brazilian government supports the inquiry, with Senator Randolfe Rodrigues describing online gambling as a public health, social, and economic issue. He believes the inquiry is an essential step in addressing these concerns, and he has suggested a broader debate on gambling advertising in the country’s Congress.
