Zona de Azar Brazil – Brazil: Measures Against Illegal Sites Following Betting Regulation

Brazil.- August 22, 2024 www.zonadeazar.com The regulation of sports betting and online gaming is advancing rapidly in Brazil. Starting in January 2025, only betting companies regulated by the Ministry of Finance will be allowed to operate in Brazil.

The Federal Government is implementing a series of measures to block access to illegal betting sites. These actions are being developed in collaboration with digital platforms, the Central Bank, and internet providers.

Measures Against Illegal Sites Following Betting Regulation

The Secretariat of Prizes and Betting, created this year by the Ministry of Finance, is leading initiatives to limit the reach of unauthorized betting sites. However, the legalization of betting in Brazil was initially approved in 2018 but lacked effective control.

Among the ongoing actions are agreements with digital platforms like Google, Meta, and Kwai to ensure that unregulated sites become invisible.

The goal is to establish an agreement that allows these platforms to remove ads from illegal sites, reinforcing the commitment to a safer and more transparent betting environment.

Support from the Central Bank and Identification of Legal Betting Sites

Another strategy involves collaborating with the Central Bank to track and block financial transactions related to illegal betting sites, especially those hosted outside Brazil.

Currently, these sites operate without difficulties in the country, but the government will prohibit their operation starting in January 2025. The government plans to sign an agreement with the Central Bank by the end of the year to reinforce this measure.

The government is also discussing with telecommunications companies the possibility of directly shutting down illegal site addresses without the need for judicial intervention. While this option is being considered, the priority is to strengthen the understanding that there is administrative authority to block these sites.

To differentiate legalized sites from illegal ones, betting companies that obtain regulation will receive the domain “bet.br.” This domain will serve as an official marker, allowing bettors to easily identify authorized companies.

Additionally, educational campaigns will be conducted to guide the public on the importance of choosing regulated betting companies, which offer greater security for players’ mental and financial health.

Upcoming Challenges and Expectations

The Secretary of Prizes and Betting, Regis Dudena, acknowledges that the challenge is significant, mainly due to the dynamic and expansive nature of the digital environment, where malicious sites can be quickly replicated.

However, he affirms that the government is committed to using all available mechanisms to ensure that only authorized sites can legally operate starting in 2025.

“In fact, these are fraudulent mechanisms that are equivalent to a mask of an e-commerce site, where you click, pay, and never receive anything. So it has nothing to do with betting; it’s just a scam,” says Dudena.

The legislation, which began to be drafted at the end of Jair Bolsonaro’s government, was consolidated by the current administration with the issuance of ten specific ordinances to regulate the sector.

In summary, the deadline for companies interested in legally operating in Brazil to apply ended this Tuesday (20), with 113 requests. Each company must pay a grant of R$ 30 million, representing an initial revenue of up to R$ 3 billion for the government.

Edited by: @_fonta www.zonadeazar.com