Over 2,000 Illegal Betting Sites Still Active in Brazil

Brazil is facing a mounting challenge as over 2,000 illegal betting sites remain operational despite regulatory crackdowns.

The ANJL and telecom regulator Anatel have raised alarms over the inefficiency of IP blocking to curb illegal gambling.

With Brazil’s regulated betting market set to launch in January 2025, authorities demand urgent measures to protect the legal ecosystem.

Discover how Brazil plans to address illegal betting and safeguard the interests of operators, players, and society.

Over 2,000 Illegal Betting Sites Remain Active in Brazil, Triggering Urgent Calls for Reform

Key Points

1. Inefficient IP Blocking: Anatel struggles to block illegal sites, citing their rapid adaptation through mirror domains.
2. Urgent Industry Concerns: The ANJL warns that unchecked illegal operations could undermine Brazil’s regulated gambling market.
3. Alternative Solutions: Payment blocking through Pix emerges as a promising strategy to combat illegal operators effectively.

Brazil Grapples with Illegal Betting Sites Ahead of Licensed Market Launch

As Brazil prepares to launch its regulated betting market on January 1, 2025, the country faces a persistent challenge: over 2,000 illegal betting sites remain active despite intensified efforts to shut them down.

The Secretariat of Prizes and Bets (SPA) had flagged over 5,200 illegal domains to the telecom regulator Anatel in November. However, Anatel’s Carlos Baigorri admitted that blocking these sites has proven inefficient, describing the process as akin to “mopping up ice.”

The Inefficiency of IP Blocking

Anatel’s efforts have been hampered by the quick adaptability of illegal operators, who create mirror sites to bypass IP blocking. Baigorri emphasized the need for enhanced legal powers and additional resources to tackle the issue.

The agency currently monitors the largest companies, covering about 80%-90% of the market. To expand its capabilities, Anatel has requested BRL7.5 million (€1.2 million) for technology upgrades.

ANJL Demands a Robust Response

The National Association of Legal Gaming Operators (ANJL) echoed Anatel’s concerns, labeling the situation as an “alarming proliferation” of illegal sites. ANJL President Plínio Lemos Jorge emphasized the threat these sites pose to both licensed operators and consumers:

“Serious and legal betting sites cannot withstand the competition from illegal sites, which harm society and tarnish the reputation of regulated operators.”

The ANJL stressed that without decisive action, illegal operations could weaken the regulated market and damage Brazil’s global reputation in the gambling industry.

Exploring Alternative Solutions

Industry experts have pointed to payment blocking as a more effective measure. Aposta Ganha CCO Hugo Baungartner highlighted Pix, Brazil’s instant payment system, as a key tool to disrupt illegal operators.

“Blocking payments through Pix is the only way to counter illegal sites effectively,” Baungartner suggested in a recent interview.

The Brazilian government has already announced plans to block payments to illegal operators using Pix. This approach targets the financial lifelines of these operations, offering a more sustainable solution than IP blocking.

Broader Industry Implications

Illegal betting sites do more than evade taxes; they exploit players with deceptive practices and lack basic security measures. Their continued presence could erode public trust in the regulated market, making it harder for licensed operators to establish credibility.

By tackling illegal operations, Brazil can protect its emerging gambling ecosystem, ensuring revenues benefit public programs and legal operators thrive.

The persistence of illegal betting sites in Brazil highlights the need for innovative solutions and increased collaboration between regulators and industry stakeholders. While IP blocking has proven insufficient, payment blocking through Pix offers a promising alternative to dismantle illegal networks.

With the licensed betting market set to launch in January 2025, swift action is critical to safeguarding Brazil’s regulatory integrity. The ANJL and Anatel have sounded the alarm, urging policymakers to invest in effective enforcement measures.

Brazil’s success in addressing this issue will not only protect its gambling sector but also reinforce its position as a global leader in responsible gaming regulation. The clock is ticking, and the stakes are high, but with the right strategies, Brazil can turn this challenge into an opportunity.