By Lisandra Paraguassu
BRASILIA, Sept 17 (Reuters) – Brazil’s government is preparing an executive order to ban online casino operations in the country, four people familiar with discussions within the presidential office told Reuters, with the proposal expected to be issued in the coming days.
President Luiz Inacio Lula da Silva, who has repeatedly signaled he wants to curb online gambling, is expected to sign off on the final text before the first round of general elections on October 4, according to the sources, who spoke on condition of anonymity.
According to two of the sources, the ban would not extend to sports betting or sponsorship deals involving sports clubs and competitions.
Even so, it would have a direct impact on those sectors because virtually all licensed sports betting operators also run online casinos, and casino games account for the bulk of their profits, one source said.
“At least 50%, and in some cases up to 70%, of revenues come from casinos rather than sports betting, and that is what funds club and championship sponsorships,” the person said.
The licenses granted by the government last year cover both online casino games and sports betting. There are currently 188 authorized betting operators in Brazil.
A separate source said Lula “wants and will take action,” but discussions with ministers are ongoing.
“We are discussing it. I have already held three meetings within the government and met with civil society, and my personal position is to end betting,” Lula said earlier this week, adding that the government must act responsibly.
Officials acknowledge that banning online casinos while preserving sports betting would significantly reduce operators’ revenues, affecting sports sponsorship spending and government tax receipts.
Treasury data show the government collected nearly 10 billion reais ($1.95 billion) last year through licensing fees and taxes from the sector.
($1 = 5.1341 reais)
(Reporting by Lisandra Paraguassu; Additional reporting by Marcela Ayres; Writing by Isabel Teles; Editing by Paul Simao)
