Brazil Initiates Nationwide Block on 2,000+ Illegal Gambling Sites

As of October 11, Brazil's Ministry of Finance began blocking more than 2,000 gambling sites operating without authorization. The move, led by the Ministry’s Prizes and Betting Secretariat (SPA), aims to eliminate unlicensed operators before the country’s official regulated gambling market launches on January 1, 2025. SPA Secretary Regis Dudena highlighted the importance of transitioning to a regulated environment, saying, “It is very important for bettors to understand that, for the sake of their mental and financial health, it is better to be in a regulated environment, where companies operate that are actually willing to comply with the rules.”

The SPA’s crackdown specifically targets websites and operators that have not applied for a license. Since the September 30 licensing deadline, only the 96 companies that have applied for licenses can legally continue their operations across the country.

Anatel Implements Blocks, Protecting Consumers

After an intensive investigation, the SPA compiled a list of 2,040 domains suspected of illegal gambling activities. This list was sent to the National Telecommunications Agency (Anatel), which has begun working with telecommunications providers to block access to these sites. Anatel president Carlos Baigorri explained that the agency will implement these blocks promptly but that each provider’s technical processes will affect the timing of specific site blocks.

The SPA’s ongoing monitoring also includes surveillance of social media channels, where some unlicensed operators have targeted Brazilian users. To protect consumers and ensure regulatory compliance, the Ministry of Finance plans to continue identifying unauthorized gambling platforms and coordinating with Anatel to keep them offline.

Finance Minister Fernando Haddad reinforced the government’s stance, noting that unlicensed companies cannot legally operate in Brazil. Haddad stressed that future applications would only be approved after thorough regulatory review, ensuring a secure and compliant market.

Under the new regulations, companies that have applied for a license and met the Ministry’s requirements must pay a concession fee of R$30 million (approximately €6.54 million) to start or continue operations on January 1, 2025. These operators must also adhere to laws designed to prevent fraud, curb money laundering, and restrict exploitative advertising. Companies failing to uphold these standards risk losing their licenses, with the SPA maintaining continuous oversight of both authorized and unauthorized entities.

In his remarks, SPA Secretary Dudena underscored the broader purpose of these measures: “Collaborating with illegal companies means contributing to companies that, ultimately, will defraud the bettors themselves. That is why it is very important to understand the separation between these two groups.”

Industry Players and Government Response

Several well-known international operators were among those blocked. Major European brands including Betclic, Betfred, and Ladbrokes have been affected, as their operators either did not submit applications by the deadline or failed to meet regulatory standards. Some companies, like Flutter Entertainment, limited their operations to specific brands in Brazil. Flutter will continue its Betfair and NSX Group brands but has ceased offering services under other banners like Paddy Power.

Entities like Entain have also restructured operations to align with Brazilian requirements. Entain’s Sportingbet brand applied under a local company name, illustrating the administrative complexity of compliance. However, certain errors in the SPA’s list were noted, with one non-gambling site, Yogonet.com, mistakenly included despite its lack of gambling services.

Dudena stated that the SPA will continually update and correct the banned list as needed to ensure accuracy. Meanwhile, the SPA also expanded the list of approved operators to include four additional companies on October 3, reaching a total of 89 approved operators representing 213 brands.

Probationary Period for Approved Operators

Companies granted provisional approval will operate under a probationary period until full licenses are issued in January. During this time, the SPA will assess compliance with all applicable laws, including Brazil’s Consumer Protection Code and the Child and Adolescent Statute. Any breaches of these laws could result in immediate suspension or termination of operating privileges.

Dudena emphasized that authorized operators would be held accountable for their actions, warning that continued monitoring will inform final licensing decisions. “Companies that are operating are jointly responsible for their actions. Even those on the current positive list are also being analysed and all their behaviour will be taken into consideration until the final decision on the final authorisation,” Dudena explained.

In addition to blocking unauthorized sites, the Ministry of Finance will restrict marketing activities for companies that fail to comply with Brazil’s gambling laws. Prohibited operators will be banned from advertising through traditional media, digital platforms, and sports sponsorships, such as partnerships with football clubs. SPA Secretary Dudena emphasized that only licensed companies will have access to Brazil’s advertising channels, ensuring consumers can trust promotions from approved sources.

The government’s efforts aim to protect gamblers and reduce exposure to unlicensed operators that evade regulations. The positive list of approved operators will act as a guide for both consumers and advertisers, helping to identify trusted brands operating legally within Brazil.

The SPA and other governmental bodies will uphold strict oversight of the gambling industry. This includes routine checks to ensure blocked sites do not regain access, with Brazilian authorities actively coordinating to close any loopholes in enforcement.

Source:

''Brazil SPA issues list of 2,040 blocked domains following illegal betting crackdown'', igamingbusiness.com, October 11, 2024.