ANJL reports that approximately 2,000 illegal betting sites are still operational in Brazil. This statement follows a warning from Anatel President Carlos Baigorri about the insufficient effectiveness of blocking such sites.
This week, Baigorri stated that the agency is struggling to block all illegal betting sites identified by the gaming regulator, the Secretariat of Prizes and Bets (SPA), ahead of the launch of the licensed market on January 1, 2025.
In November, SPA provided Anatel with information on more than 5,200 domains belonging to illegal betting sites as part of efforts to combat the illegal market. Anatel was tasked with shutting down these domains, but this week, Baigorri compared the agency’s efforts to “mopping up ice,” admitting that Anatel lacks the resources to block all illegal sites.
The National Association of Lottery Games in Brazil (ANJL) shares Baigorri’s position, emphasizing the need for “urgent blocking” to counter the “alarming scenario of proliferation” in the number of illegal sites.
It is well known in the sector that illegal operations are quick to circumnavigate IP blocking efforts by launching mirror sites to direct payers to as a domain has been taken down.
According to ANJL data gathered during recent discussions with operator partners, more than 2,000 illegal domains are still actively operating in Brazil.
The association’s president, Plínio Lemos Jorge, insists on taking decisive measures to strengthen IP blocking in order to protect both licensed operators and players.
“Serious and legal betting sites will not be able to withstand the competition from illegal sites,” Lemos Jorge explained.
“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 is the main issue for operators in Brazil
Baigorri called for granting Anatel additional legal powers to improve the effectiveness of blocking orders.
Anatel stated that it can only effectively monitor the largest operators, who make up 80%-90% of the market. The agency has requested approximately BRL 7.5 million ($1.3 million) to invest in technology that would expand its coverage.
ANJL sees illegal operators as the greatest threat to the industry ahead of the licensed market’s launch on January 1, 2025.
“The continued operation of illegal websites – which use misleading advertising, do not collect taxes and do not provide any 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.
In an interview with iGB on November 27, Hugo Baungartner, Chief Commercial Officer of Aposta Ganha, suggested that payment blocking could be the optimal way to tackle illegal operators in Brazil. The government had previously announced its intention to block payments made through the illegal operator Pix. Pix is an instant payment service managed by Brazil’s Central Bank, widely used in the country’s gambling sector.
“I think the only way to do it is through payments methods, through Pix,” Baungartner said.
“If they really follow the leads regarding who is operating illegally and providing Pix, that’s the only way [to counter illegal sites] because blocking IPs or URLs doesn’t have any real effect in the long term.”
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