The National Confederation of Commerce argues that online gambling is taking revenue from other industries.

Brazil.- The National Confederation of Commerce (CNC), a lobby group representing Brazilian retailers and service providers, has launched a legal challenge against the country’s move to regulate online gambling. The body claims that online gambling is taking revenue from other industries.

The group says that online gambling is causing families to fall into debt and is “considerably damaging the domestic economy, retail trade and social development.” It estimates that online betting caused BRL 1.1bn (€190m) in retail losses in the first semester of this year alone.

The lawsuit aims to have Law No. 14,790, which was signed by president Lula da Silva in December 2023, declared unconstitutional. It’s seeking a precautionary measure to suspend the law, interrupting the regulatory process currently underway.

The new Brazilian gambling regulator, the SPA, has received over 100 applications for online gambling licences, which it is currently reviewing. They include applications from operators already active in the unregulated market. Regulated online gambling is to commence from January 1 2025.

Deadline for gambling operators who haven’t applied for licences

Brazil’s Ministry of Finance has given operators a deadline of October 1 to apply for online gambling licences. After that, any gambling business that has not applied for a Brazilian online gambling licence will see its operations suspended ahead of the launch of a regulated market on January 1.

Betting operators that fail to submit an application by the end of this month will be considered illegal from October 1. The SPA will allow them until October 10 to refund customer funds and close accounts.

The ministry said in a statement: “Only companies that are already operating and have requested authorisation by September 30, 2024, may continue to operate until December 2024. By 1 January 2025, only fully compliant companies will be able to continue operations.”