Ex-Finance Ministry Advisor Warns Against Banning Online Betting

José Francisco Manssur, former special secretary of Brazil’s Ministry of Finance, has issued a strong warning against banning online betting in Brazil. Manssur, who was instrumental in shaping Brazil’s current betting legislation, argues that prohibition would negate years of progress and harm Brazil’s economy and global standing. His comments come in response to Bill 4,031/2024, proposed by Senator Sérgio Petecão to ban online betting, citing fiscal debt and addiction concerns.

Brazil’s Ex-Finance Advisor Opposes Online Betting Ban, Supports Regulation

In a recent op-ed for Poder 360, José Francisco Manssur cautioned that an outright ban on online betting in Brazil would undo years of legislative work, discourage investment, and drive betting activity underground. As one of the architects behind Brazil’s online betting framework, Manssur argues that a regulated environment provides far more benefits than a prohibitionist approach, particularly as Brazil’s regulated market prepares for launch on January 1, 2025.

Key Points:

• Senator Sérgio Petecão proposed Bill 4,031/2024 to ban online betting due to concerns over debt and addiction.
• Manssur warns that prohibition could lead to a loss of tax revenue, job losses, and a thriving black market.
• Brazil’s Secretariat of Prizes and Bets (SPA) has set modern, restrictive regulations aimed at player protection.

Manssur’s arguments center on the economic and social impact of a ban, particularly given the investments that licensed companies have already made to enter Brazil’s market. Currently, 269 companies have applied for betting licenses, reflecting strong support for the SPA’s regulatory framework. “Banning betting now, even before companies are authorized or soon after… would mean that the entire process put in place over the last two years would have been for nothing,” Manssur explained.

Economic Implications of a Betting Ban

One of Manssur’s strongest points against the ban is its potential economic impact. According to the International Betting Integrity Association, Brazil’s regulated sports betting market could reach $34 billion in turnover by 2028, generating significant tax revenue and job opportunities. Banning betting, Manssur argues, would mean forgoing these benefits while pushing the activity into unregulated black markets, leading to lost revenue and diminished player protections.

Manssur also points out that prohibition rarely succeeds in reducing usage. He compares the proposed betting ban to the U.S. alcohol prohibition from 1920 to 1933, which resulted in a surge of illegal activity. “Illegal betting activity would likely increase and lead to a loss of tax contributions to the state,” he added, questioning the effectiveness of prohibition in curbing gambling addiction or fiscal issues.

Regulation as a Path to Responsible Growth

Manssur is confident that the SPA’s regulations provide a responsible approach to controlling online betting. With measures such as credit card bans for betting and advertising restrictions, Brazil’s regulatory framework has incorporated best practices from global markets. Manssur believes these rules position Brazil as a global leader in responsible gambling regulations, with safeguards in place to protect players while fostering economic growth.

“Proper regulation reduces cases of addiction, creates jobs and increases the country’s revenue,” Manssur noted. He also highlighted that it took nearly five years to implement Brazil’s betting legislation, a delay that has contributed to recent concerns about player welfare and illegal gambling activity. The SPA’s framework aims to address these issues, creating a regulated market that prioritizes consumer protection.

Impact on Brazil’s Global Reputation

Manssur’s final concern is that a sudden ban on online betting would harm Brazil’s international reputation as a stable, business-friendly environment. He argues that a ban would signal that Brazil’s regulatory policy was merely performative, potentially discouraging foreign investment in other sectors as well. “What image of Brazil’s legal security would be conveyed to the world?” Manssur questioned, emphasizing that a stable regulatory framework is essential to attracting and retaining investment.

José Francisco Manssur’s perspective highlights the potential risks of banning online betting in Brazil. From economic repercussions to job losses and a loss of international confidence, his argument underscores the importance of regulation over prohibition. As Brazil’s regulated market gears up for its January 2025 launch, Manssur believes the SPA’s robust framework will be key to managing risks, protecting players, and supporting a thriving, responsible betting industry.

The post Ex-Finance Ministry Advisor Warns Against Banning Online Betting appeared first on Gamingo News.

José Francisco Manssur, former special secretary of Brazil’s Ministry of Finance, has issued a strong warning against banning online betting in Brazil. Manssur, who was instrumental in shaping Brazil’s current betting legislation, argues that prohibition would negate years of progress and harm Brazil’s economy and global standing. His comments come in response to Bill 4,031/2024,
The post Ex-Finance Ministry Advisor Warns Against Banning Online Betting appeared first on Gamingo News.