The Brazilian National Association of Games and Lotteries (ANJL) revealed that there are still 2,000 illegal websites operating in Brazil. Previously, the chairman of the telecommunications regulatory agency (Anatel), Carlos Baigorri, had warned that blocking illegal gambling websites is an inefficient measure.
Anatel CEO Baigorri warned that before the licensed gambling market starts on January 1, 2025, it is difficult for the agency to fully block all illegal gambling websites identified as illegal by the gambling regulatory authority, the Secretariat of Awards and Betting (SPA).
In November, SPA sent Anatel detailed information on more than 5,200 illegal gambling website domains, aiming to combat the illegal gambling market. The regulatory agency's task is to ensure these domains are shut down, but this week Baigorri likened Anatel's efforts to "sweeping methamphetamine," acknowledging the agency's lack of ability to block all illegal sites.
ANJL supports Baigorri's view, calling for "urgent blocking" to address the "alarming spread" of illegal sites.
It is well known in the industry that illegal operators launch mirror sites after their domains are shut down, guiding payers to the site, thus quickly circumventing IP blocking measures.
ANJL stated, based on recent conversations with its operating partners, that there are still over 2,000 illegal domains operating in Brazil.
The association's president, Plínio Lemos Jorge, called for a strong response to IP blocking to protect licensed operators and players.
"Serious and legal gambling sites will not be able to withstand the competition from illegal sites," Lemos Jorge explained.
"We need to eliminate the fake and keep the genuine, only by severely cracking down on illegal sites, which have already harmed society and damaged the image and reputation of legal gambling sites."
Illegal gambling is the primary concern for Brazilian gambling operators
Baigorri called for granting Anatel additional legal powers to enhance its ability to effectively enforce blocking orders.
Anatel stated that it can only effectively monitor large companies that make up 80%-90% of the market. The agency is applying for about 7.5 million Brazilian reais (1 million pounds/1.2 million euros/1.3 million dollars) in funding to invest in technology that can expand its coverage.
ANJL believes that illegal operators are the biggest challenge facing the industry before the licensed market starts on January 1, 2025.
ANJL also added: "The continued operation of illegal sites—using misleading advertising, not paying taxes, and not providing any support or security to bettors—may weaken the entire regulatory environment and make Brazil a pariah in the global gambling market."
Hugo Baungartner, Chief Commercial Officer at Aposta Ganha, said in an interview with iGB on November 27 that blocking payments might be the best way to combat illegal operators in Brazil.
The government had previously announced that it would block payments to illegal operators through Pix. Pix is an instant payment service managed by the Central Bank of Brazil, widely used in the country's gambling industry.
"I think the only way is through payment methods, through Pix," Baungartner said.
"If they really track down the illegal operators and those providing Pix, that's the only method [to combat illegal sites], because in the long run, blocking IPs or URLs doesn't really work."
