Brazilian authorities have begun cracking down on more than 2,000 betting sites, marking a significant move to regulate the country’s online gambling sector. This decision comes as part of an effort led by Finance Minister Fernando Haddad to tackle what he describes as a “betting pandemic,” with growing concerns over the unregulated nature of online gambling since its legalization in 2018.
Despite the legality of sports betting, Brazil’s online gambling industry has operated with few regulations and no taxation, which has raised alarm. The newly imposed rules, set to take effect in January, aim to address issues such as fraud, money laundering, and the protection of users. One of the key provisions includes banning minors from participating in gambling activities.
Among the targeted sites are major sponsors of first-division football clubs, including Corinthians. The closure of these sites underscores the government’s serious intent to bring the sector under control, especially as Brazilians increasingly engage in both sports betting and casino-style games like Aviator and Fortune Tiger.
This regulatory tightening is expected to have a broad impact on Brazil’s online gambling market, as non-compliant sites will be shut down unless they sign up for the new rules. This move reflects a broader effort to clean up and oversee the gambling industry while protecting vulnerable users.
The rapid growth of online gambling in Brazil has contributed to what Finance Minister Fernando Haddad has described as a “betting pandemic.” Sites like Aviator and Fortune Tiger have gained immense popularity, along with sports betting tied to major football clubs, such as Corinthians. However, the lack of regulation has made the industry a hotbed for potential illicit activities.
The new regulations will require betting sites to be fully compliant, or they will be shut down. These rules not only impose stricter controls to ensure that operators are acting within the law but also introduce consumer protections that didn’t exist before. This step is likely aimed at ensuring a safer environment for users while generating tax revenues for the government.
It’s a significant shift in how Brazil plans to oversee this lucrative but problematic industry.
The finance ministry said it had identified 2,040 “suspicious domains” which it had asked the telecoms regulatory agency Anatel to block.
On the blacklist is Esportes da Sorte, which sponsors Corinthians, one of Brazil’s most popular football clubs, as well as Athletico Paranaense, Bahia and Gremio de Porto Alegre.
The ministry said the betting sites would be blocked and banned from advertising, “which includes, for example, sponsoring football clubs.”
More than 200 other sites will be allowed to continue to operate after agreeing to the new rules.
Brazil’s central bank estimates that 24 million out of Brazil’s 212 million inhabitants, roughly one in nine people, gamble online.
Lula warned recently that betting was causing many low-income Brazilians to get into debt.
AFP
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