Illegal Gambling Threatens Brazil’s Regulated Betting Market
Legal Betting Faces Risks as Illegal Operators Persist
The National Association of Games and Lotteries (ANJL) president, Plínio Lemos Jorge, has raised concerns that Brazil’s legal betting operators could withdraw from the market if the illegal gambling sector is not effectively controlled. His warning comes as the country prepares to launch its regulated betting market on 1 January 2025.
According to Brazil’s Secretariat of Prizes and Bets (SPA), 71 operators have secured licenses, with 16 already paying the required BRL 30 million ($4.9 million) concession fee. However, despite these developments, illegal operators remain a significant challenge, with over 2,000 unlicensed sites reportedly active.
The Impact of Illegal Competition
Lemos Jorge emphasized that the unchecked growth of illegal gambling could deter licensed operators from remaining in Brazil. “If the market scenario does not favour expected returns, those who are already here may leave,” he stated. He highlighted the dangers of illegal platforms, which evade taxes and regulatory costs while compromising player safety, particularly for vulnerable groups such as children and adolescents.
Carlos Baigorri, president of the National Telecommunications Agency (Anatel), likened efforts to combat illegal sites to “mopping up ice,” illustrating the ongoing challenges in shutting down these operators.
Proposed Solutions: Enhanced Oversight and Payment Blocks
Strengthening enforcement mechanisms has become a top priority. Anatel has called for increased legal authority to expedite the blocking of unlicensed gambling sites. Lemos Jorge suggested that legislative measures granting Anatel greater autonomy could make the blocking process more efficient and reduce the lifespan of illegal websites.
Beyond site blocking, payment blocking has emerged as a promising solution. Under Brazil’s new regulations, payments made via Pix, the country’s widely-used instant payment system, to unlicensed operators will be prohibited. This approach aims to disrupt financial transactions that sustain illegal platforms. Lemos Jorge underscored the importance of targeting financial institutions enabling these operations, stressing that they too could face penalties under Brazilian law.
Industry Optimism Amid Challenges
Despite concerns, Lemos Jorge remains optimistic about the future of Brazil’s regulated betting market. He praised the country’s comprehensive regulatory framework, established through Law 14,790/2023, as one of the most robust globally. He expressed confidence in the collaborative efforts of government agencies and private stakeholders to curb illegal gambling activities and create a secure betting environment.
As discussions continue, the ANJL and Anatel are expected to release new measures in the coming weeks to bolster their fight against unlicensed operators.
