Illegal Betting Sites Persist in Brazil Despite Regulatory Efforts
The National Association of Games and Lotteries (ANJL) has revealed that approximately 2,000 illegal gambling websites are still operating in Brazil. This revelation follows warnings from Carlos Baigorri, president of the telecommunications regulatory agency (Anatel), who stated that blocking illegal betting sites is proving to be an ineffective measure.
Earlier this week, Baigorri highlighted the difficulties Anatel faces in blocking all the illegal betting sites identified by the Secretariat of Prizes and Betting (SPA) prior to the launch of the regulated betting market on January 1, 2025.
In November, the SPA provided Anatel with details of over 5,200 domains associated with illegal betting sites as part of its efforts to crack down on the illicit market. Anatel was tasked with ensuring these domains were taken down. However, Baigorri likened Anatel’s efforts to “drying ice,” admitting the agency lacks the capacity to block all illegal sites.
The ANJL supports Baigorri’s sentiments, calling for an “urgent blockade” to address the “alarming scenario of proliferation” of illegal websites.
It is widely acknowledged within the industry that illegal operations quickly circumvent IP blocking efforts by launching mirror sites to redirect bettors as soon as a domain is taken down.
According to the ANJL, based on recent discussions with its operator partners, over 2,000 illegal domains remain active in Brazil.
Plínio Lemos Jorge, president of the association, is urging a robust response to IP blocking to protect both licensed operators and players.
“Serious and legal betting sites will not be able to compete with illegal sites,” explained Lemos Jorge.
“We need to separate the wheat from the chaff, and this will only happen with a tough fight against illegal sites, which have harmed society and tarnished the image and reputation of legal betting sites.”
Illegal Betting: A Primary Concern for Operators in Brazil
Baigorri has requested that Anatel receive additional legal powers to enhance its ability to enforce blocking orders effectively.
Anatel claims it can only effectively monitor the largest companies, which represent 80% to 90% of the market. The agency is requesting approximately R$7.5 million (£1 million/€1.2 million/US$1.3 million) in funding to invest in technology that will increase its coverage.
The ANJL believes that illegal operators pose the biggest challenge to the industry ahead of the regulated market launch on January 1, 2025.
“The continued operation of illegal sites – which use misleading advertising, do not collect taxes, and do not provide support or security to bettors – carries with it the dangerous potential to weaken the entire regulated environment and position Brazil as a pariah in the global betting market,” the ANJL added.
Previously, Aposta Ganha’s CCO, Hugo Baungartner, suggested that blocking payments could be the most effective way to combat illegal operators in Brazil.
The government has already announced that payments made to illegal operators via Pix will be blocked. Pix, an instant payment service managed by the Central Bank of Brazil, is widely used in the country’s betting industry.
“I think the only way to do this is through payment methods, through Pix,” said Baungartner.
“If they really follow the leads on who is operating illegally and providing Pix, that is the only way [to combat illegal sites], because blocking IPs or URLs has no real long-term effect.”
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