Brazil cracks down on betting sites amid new gambling regulations

The Brazilian government has initiated the closure of over 2,000 betting sites across the country, targeting platforms that have failed to comply with upcoming regulations set to take effect in January.

This move is part of President Luiz Inacio Lula da Silva’s administration’s effort to regulate online gambling, combat fraud, money laundering, and protect vulnerable users, such as minors, from participating in betting activities.

Finance Minister Fernando Haddad described the issue as a “betting pandemic” impacting Brazil’s economy and prompting the government to impose stricter controls. Betting platforms like Esportes da Sorte, which sponsors popular football teams including Corinthians, Athletico Paranaense, and Gremio, have been blacklisted and will be blocked from operating, advertising, or sponsoring clubs if they do not adhere to the new regulations.

Brazil legalized sports betting in 2018, which led to unregulated growth in the gambling sector, with limited oversight and virtually no taxes paid. Aside from sports betting, online games like Aviator and Fortune Tiger have surged in popularity, adding to the challenges faced by regulators.

According to the central bank, approximately 24 million Brazilians, out of a population of 212 million, engage in online gambling. President Lula expressed concern over the impact on low-income citizens, warning that many have fallen into debt due to betting.

As of now, the government is allowing more than 200 other betting sites to continue operations, provided they comply with the forthcoming rules. The authorities have already requested the telecom regulator, Anatel, to block over 2,000 “suspicious domains.”