Zona de Azar Brazil – Brazil: Operators Can’t Block Bets in Rio only, Affecting other States

Brazil.- August 08, 2024 www.zonadeazar.com The recent court decision that blocked more than 100 online bookmakers (bets) in Rio de Janeiro has generated problems that go beyond the state boundaries.

Affected companies report that users in other states, such as Bahia, Maranhão and Paraná, are also experiencing difficulties accessing the platforms.

Technical difficulties in blocking Bets

Telecoms companies, such as Claro and AT&T, have informed the courts that they are unable to restrict access to bets to Rio de Janeiro alone, as determined by Judge Pablo Zuniga Dourado, of the Federal Regional Court of the First Region (TRF1). The decision complied with a request from the Rio de Janeiro State Lottery (Loterj), which in 2023 established rules for regulating betting, including its operation in other states.

Loterj’s regulation required a payment of R$5 million to Rio, in addition to 5% of the Gross Gaming Revenue (GGR) each month, which is less than the R$30 million stipulated by the Ministry of Finance for federal regulation, which also imposes a 12% tax on the GGR.

In July, the National Telecommunications Agency (Anatel) requested that 115 platforms not registered with Loterj be blocked. However, after the blockade, the bookmakers reported access problems in other states and created new URLs to continue serving punters in Rio. At least two bookmakers, Betano and Bet365, are using alternative links.

Operator response

On 5 July, AT&T informed the courts that it was unable to implement the blocking as ordered, as this would affect other states. On 10 July, Claro also reported that it was unable to comply with the court order due to infrastructure limitations. Anatel said that companies such as Claro, Vivo and TIM claimed that it was technically impossible to comply with the judgement. However, Vivo and TIM have found a way to limit access to Rio only, while Claro is still looking for a viable solution.

Carlos Manoel Baigorri, president of Anatel, emphasised the need to comply with the court decision, saying: “Our position is that the court decision needs to be complied with (…) Block where you have to block, but block Rio,” Baigorri told GLOBO. TIM and Vivo confirmed that they are complying with the decision, while Oi did not comment on the ongoing legal actions.

Gabriel de Britto Silva, a lawyer specialising in consumer law, believes that the technological problems weaken the ruling and show how difficult it is for states to create individual rules to accredit bets. Rio is the only state that accredits platforms to operate in other parts of the country, which has led to complications.

Darwin Filho, CEO of Esportes da Sorte, expressed concern about possible lawsuits from affected consumers in other states who have lost access to the money deposited in their accounts.

Technical challenges

Information technology experts agree that although it is possible to block access in a single state, the task is not simple. Pedro Diógenes, technical director at CLM, explains that configuring the equipment to precisely delimit the boundaries of a state is a challenge. Thiago Souza, professor of technology at Ibmec, points out that the dynamic allocation of IP addresses makes the task even more complex: “For example, a person in Juiz de Fora can receive an IP address from the metropolitan region of Rio de Janeiro, which can lead to access being blocked,” says Souza.

Edited by @pererarte   www.zonadeazar.com