Brazil intensifies crackdown on illegal betting, blocks over 5,200 websites

Bruna Garcia November 21, 2024

SiGMA news

The Ministry of Finance’s Prizes and Betting Secretariat (SPA) continues its aggressive stance against illegal online betting operations in Brazil. In its latest move, the SPA has submitted a third list of 1,812 internet domains to the National Telecommunications Agency (Anatel) for immediate blocking.

The first list was sent on October 11, with 2,040 sites. The second, on October 31, contained over 1,400. This latest action brings the total number of blocked illegal betting sites to over 5,200 in less than two months. The SPA’s proactive approach to combating illegal gambling has been instrumental in protecting consumers and ensuring a fair and regulated gaming market.

As on the two previous occasions, the blocking order is being sent to the approximately 20,000 telecommunications companies that provide internet signal in Brazil. Each company will take its technical measures, and Anatel will monitor to ensure the blocking is carried out effectively and as quickly as possible.

Blocking the websites is just one of the Federal Government’s actions to combat illegal betting. Combating illegal websites’ advertising (including those carried out by influencers) and the use of the national financial system by these companies are other actions.

Only companies that have requested authorisation by September 17th or that have been indicated by state and Federal District betting regulatory bodies may indicate websites to offer bets legally by the end of this year.

Regulatory compliance and future outlook

By December, the Treasury must conclude the final analysis process of the first requests received, to verify which betting companies comply with all the provisions of Law No. 13,756/2018 (which legalises fixed-odds betting, in the sports betting modality); Law No. 14,790/2023 (which regulates the operation of fixed-odds betting and includes online games in this category); and the more than ten SPA ordinances that regulate the activity. Starting January 1st, 2025, only companies authorised by the SPA will be able to offer bets nationwide.

Companies authorised to operate until December will also be monitored since they are in a “probationary period” while they wait for all documentation to be analysed for the final authorisation process. Companies that violate any law in force in Brazil — including the Consumer Protection Code and the Child and Adolescent Statute — take the risk of not obtaining authorisation to operate next year.

Authorised operators will remain under close scrutiny during this probationary period until December 2024. Any violation of Brazilian laws, including consumer protection and child protection regulations, could jeopardise their future authorisation.

The Ministry of Finance’s ongoing efforts to regulate the online betting industry underscore its commitment to protecting consumers, ensuring fair play, and maximizing revenue for the government.

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