Recent enforcement activities highlight concerns of Brazil’s exposure to unlicensed gambling, as market irregularities threaten the integrity of Bets regime ahead of its forthcoming launch
Anatel, Brazil’s National Telecommunications Agency, has been instructed to step up enforcement against unlicensed gambling websites. On Tuesday, the Secretariat for Prizes and Betting (SPA), the regulatory body overseeing Brazil’s upcoming Bets market, issued a new directive for Anatel to block over 1,800 domains.
Since 1 October, the SPA has submitted three orders to Anatel, requesting the blocking of more than 5,200 unlicensed websites. This campaign reflects the government’s commitment to tackling illegal betting ahead of the federal framework’s launch in January 2025, which will regulate fixed-odds betting and online gaming.
Enforcement Challenges: “Like Drying Ice”
The SPA had earlier set a hard deadline of 1 October for unlicensed operators to exit the Brazilian market. Following this, Anatel confirmed it had distributed block orders to over 20,000 internet service providers (ISPs) nationwide. However, Anatel acknowledged its limited authority, as it relies on ISPs to implement these blocks promptly and effectively.
Carlos Baigorri, president of Anatel, outlined technical difficulties in enforcing these measures. Betting platforms can bypass restrictions by using alternative digital infrastructures or unregulated IP domains. Baigorri explained that Anatel’s role is confined to coordinating the blocking process and does not include managing domain names or IP distribution.
He warned that unlicensed platforms will continue to exploit loopholes, describing the process as “like trying to dry ice.” He elaborated: “We receive the list of domains from the Ministry of Finance, block them all, and then the Ministry of Finance continues monitoring to see if the domain has changed, the name was altered, or the site has moved to a new domain.”
Illegal Betting’s Parallel Market
The Ministry of Justice has also been alerted to “serious irregularities” in the betting sector. An investigation by the National Secretariat for Sports Betting and Economic Development of Sports (SNAEDE) uncovered 53 accounts and 25 YouTube channels promoting sports betting with “promises of quick and easy profits.” These channels reached over 100,000 viewers, with a focus on individuals under 25.
The investigation pointed to the existence of a parallel market, where influencers, advertisers, and developers are profiting from illegal activities. Minister of Sports André Fufuca criticised social media platforms and called for stricter monitoring, stating: “Thousands of Brazilians, deceived by promises of easy profits, end up being victims of fraud. Sports betting must be regulated to ensure transparency and protect the population. Our priority is to safeguard Brazilians and uphold the integrity of sport.”
Ban on Betting Bonuses
In a related move, the National Consumer Secretariat (Senacon) has prohibited online gaming and betting operators from offering bonuses, prizes, or promotions. This intervention aims to combat misleading advertising and prevent user exploitation through promotional tactics.
Senacon’s mandate bans any advertising of rewards such as advances, upfront payments, bonuses, or other benefits, even if disguised as promotions or marketing. This prohibition applies nationwide and is part of broader efforts to regulate the Bets market.
Final Licensing Phase
As December nears, Regis Dudena, president of the SPA, announced that final preparations for licensing operators are underway. The SPA plans to reveal the list of approved operators by the end of December.
Once announced, operators will have 30 days to meet the final authorisation requirements. These include paying an upfront concession fee of R$30 million (€5 million) and completing certification checks for their platforms.
