Malta Gaming Authority ‘closely following evolving situation’ in Brazil

The Malta Gaming Authority is “closely following the evolving situation” in Brazil, but declined to provide further comment on the abrupt ban on online gambling in the world's fifth-largest iGaming market.

“As a matter of principle, the MGA does not comment on regulatory or policy decisions taken by other jurisdictions. Each jurisdiction is responsible for determining the regulatory approach it considers appropriate for its market.”

Responding to questions sent by iGamingCapital.mt, the MGA noted that “given the recency of these developments, it would be premature to draw conclusions regarding their broader impact on Malta’s gaming sector.”

President Luiz Inácio Lula da Silva shocked the global iGaming market last week when he announced a complete ban on online sports betting and online casinos mere days before the country heads to the polls.

Online gambling was legalised in the country of 213 million back in 2018, but no regulatory framework was introduced until 2025.

Regulation ushered in a wave of intense marketing efforts by iGaming operators keen to secure a foothold in the market. Today, many football teams in Brazil’s top league have signed long-term sponsorships with online betting firms, and gambling ads are a regular sight on Brazilian television.

However, the popularity of online gambling has generated plenty of controversy, with President Lula highlighting human stories of families afflicted by addiction. Banks and thinktanks have also attributed a drop in consumer spending – even amid rising incomes – to increased spending on the iGaming industry.

Whether Brazil’s gambling regulator could have benefitted from tapping into the experience of the MGA in ensuring responsible gambling among licensed operators is an open question.

Asked whether it sought to allay concerns being expressed in Brazil with regard to responsible gambling, and to confirm whether all its licensees operating in Brazil had abided by the relevant rules regarding responsible gambling, the MGA said that while it “maintains dialogue and cooperation with regulatory counterparts internationally,” it “does not comment on the substance of individual regulatory exchanges.”

It added that its remit is to “supervise operators within the scope of Malta’s regulatory framework, including their compliance with responsible gambling and player protection requirements.”

The ban comes into effect on 6th October – two days after the first round of voting in Brazil’s election. Signed into law by the President, it remains a temporary measure until signed into law by the National Congress.

The measure is also expected to face legal challenge by gaming operators, with Brazil’s National Association of Games and Lotteries saying it is already “taking appropriate measures to overturn the provisional measure by taking the matter to court.”

Similarly, iGaming giant Allwyn, which has a 36.75 per cent in Kaizen Gaming, operator of Brazilian market leader Betano, indicated that is “preparing legal action to protect its rights in Brazil in consideration of its five-year licence to operate, issued under the current government on 1 January 2025.”