The Brazilian government has taken decisive action in its efforts to regulate the online betting market by blocking 2,040 illegal betting sites that failed to meet the requirements for licensing. The move, led by Brazil’s Secretariat of Prizes and Bets (SPA), marks a critical step in the preparation for the country’s fully regulated market launch on January 1, 2025.

The shutdown, which came into effect as of midnight on October 10, follows a 10-day grace period that allowed players time to withdraw their funds from the blocked platforms. These betting sites had not applied for a license by the regulatory deadline of September 30, which led to their removal from the market by Brazil’s National Telecommunications Agency (Anatel).

Cracking Down on Illegal Betting Sites

This mass blocking of unauthorized platforms comes after extensive monitoring by the SPA, which identified suspicious activity across websites and social networks. Among the blocked platforms are notable betting brands such as Betclic.com, Betfred.com, and Ladbrokes.com, whose operators either failed to apply for licenses or chose not to operate in Brazil’s regulated market.

Regis Dudena, Secretary of Prizes and Bets at the Ministry of Finance emphasized the importance of protecting players, stating, “It is crucial for bettors to understand that it is safer to engage with regulated companies that comply with Brazilian law, rather than support illegal platforms that could defraud them.”

The blocked operators can still apply for licenses to re-enter the market, but the process is expected to take up to 180 days. The companies will have 150 days to receive a response from the treasury, followed by an additional 30 days to pay the R$30 million (€6.54m) concession fee.

Regulation in Progress: January 2025 Launch

The removal of illegal operators is part of Brazil’s broader efforts to establish a secure, regulated online betting market set to officially launch on January 1, 2025. By that time, all companies wishing to operate in Brazil must meet strict regulatory requirements, including compliance with anti-fraud measures, money laundering controls, and responsible advertising practices.

Companies that were on the SPA’s approved list, published before the September deadline, will be allowed to continue operating in Brazil until the regulated market officially goes live. However, they are under close scrutiny. Even these companies are currently considered to be in a “probationary period” and must ensure full compliance with Brazilian law to retain their licenses. If they fail to comply with laws such as the Consumer Protection Code or the Child and Adolescent Statute, they risk losing their operating rights before January.

Monitoring and Enforcement

The SPA has made it clear that blocking illegal sites is just the beginning. Moving forward, the Brazilian treasury department, in collaboration with Anatel, will continue monitoring to ensure that unauthorized betting platforms remain inaccessible to Brazilian customers.

Anatel president Carlos Baigorri said that 20,000 telecommunications companies were notified to block the illegal domains, adding that the speed of these shutdowns would depend on the technical processes involved. “We will ensure that this blocking is carried out effectively and as quickly as possible,” Baigorri stated.

Additionally, unauthorized operators will be prohibited from advertising in Brazil, including sponsoring football clubs, a practice that has become increasingly common in the country. Dudena highlighted that the “positive list” of authorized companies will serve as the benchmark for what is legal and regulated in the country, ensuring that bettors can make informed decisions about where to place their bets.

Safeguarding Player Funds

Although these illegal sites have been taken offline, they are still required to return any remaining funds to players who may have left money in their accounts. The government initially provided a 10-day window for bettors to withdraw their funds before the sites were blocked. However, concerns remain about whether operators will fully cooperate in refunding users after being forced offline.

Dario Durigan, Executive Secretary at the Ministry of Finance, stressed the importance of playing within a regulated environment. “It’s essential for bettors to understand that a regulated market not only protects their financial interests but also their mental and financial health,” Durigan said.

The blocking of illegal sites represents the first major enforcement measure as Brazil approaches the official start of its regulated online betting market. While it signals the government’s commitment to a safe and controlled betting environment, it also underscores the ongoing efforts needed to keep the market free from unregulated actors.

Source:

“Ministério da Fazenda pede bloqueio de mais de dois mil sites de apostas ilegais no Brasil“, gamesbras.com, October 11, 2024.