Brazil Identifies Nearly 700 New Illegal Bets Following Ban

Illegal Betting Market Grows After Ban

The Independent Observatory that oversees the Brazilian betting market has identified the creation of nearly 700 new illegal platforms since the announcement of the move.

According to the Bet Legal platform, 58 new unauthorized betting sites were identified shortly after the ban was announced on Friday (25). On Saturday (26) another 334 addresses were registered.

As of early Tuesday night (29), the survey pointed to nearly 700 illegal gambling sites created since the start of the ban.

Online betting has been banned in the country since September 25, almost three years after the Brazilian government regulated the operation of the sector.

Deadline to withdraw balances

Bets that operated in an authorized manner may remain available until October 5 exclusively to allow bettors to withdraw the existing amounts in their accounts.

After this period, websites and apps must cease operations.

Government expands block on illegal gambling

The Brazilian government claims to have set up a task force to oversee the illegal gambling market.

In its first assessment, the Ministry of Justice reported that it requested the blocking of more than 5,200 illegal websites. The agency also notified two online stores to remove 186 betting apps from the air by Oct. 5.

In addition, 390 pages and profiles on social networks were identified that advertised illegal betting. The government requested the removal of this content.

Strategy also involves the financial system. The interim measure prohibited financial institutions from processing transactions intended for betting, with the aim of making it more difficult for unauthorized platforms to move funds.

Government seeks to track money from illegal gambling

According to the National Secretary of Public Security, Chico Lucas, the new legislation expands the instruments available to supervise the resources moved by the illegal market.

"We didn't have legal instruments to go after the money. The deputy presented obligations with financial institutions. The Central Bank has already regulated two resolutions and these resolutions allow us to go where the money goes," he said.

The government's expectation is that the new obligations imposed on financial institutions will make it possible to identify the path of resources associated with illegal operations.

ANJL questions the effectiveness of the blockades

The National Gaming and Lotteries Association (ANJL) criticized the government's performance in fighting illegal gambling.

According to the entity, of the more than 5,200 sites whose blocking was requested by the government, less than half had the blockade effectively determined by the National Telecommunications Agency (Anatel).

The association also presented data different from those collected by the Independent Observatory. According to ANJL, a platform maintained by the entity identified 894 new illegal websites on Monday alone (28).

For the association, the accelerated appearance of new addresses highlights the difficulty of removing illegal platforms from the market and maintaining blockades in the face of the constant creation of new domains.

Dispute over the scope of inspection

Surveys presented by different entities point to one of the main challenges of Brazil's betting ban: preventing unauthorized operators from continuing to offer bets through new addresses and digital channels.

At the same time that the government expands requests to block websites, applications and advertising, the emergence of new illegal platforms maintains inspection as one of the main points of the implementation of the measure.