If the illegal betting market is not properly combated, there is a risk that legalized bets may "leave the country". This is the assessment of Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL), in an interview with UOL Bets. According to him, irregular sites negatively impact the industry and society itself, as they are companies that do not pay taxes and have no concern for the health of bettors.
UOL Bets - What is the direct impact of illegal betting sites on the sports betting market in Brazil?
Plínio Lemos Jorge - Illegal sites negatively impact the industry and society in various ways. The main one is predatory and unfair competition, since these platforms will not collect taxes or bear the costs inherent to the entire structure necessary for installation and operation in Brazil, as defined by Law 14.790/2023.
In addition, they are companies that wish to remain in clandestinity, without any concern for the well-being and health of bettors or the protection of children and adolescents.
Recently, we have seen the movement of some bets leaving the Brazilian market. Is there a risk of more brands leaving because of illegal sites?
Yes, this risk exists if the illegal market is not effectively combated. Like any company, the executives leading the betting houses assess all risks before deciding to set up and operate in Brazil, since, from January 1st, various obligations will have to be met, including financial ones, such as the payment to the Union of R$ 30 million, referring to the federal license.
If investors assess that the market scenario is not favorable to the expected returns, certainly those who are already here may come to leave the country.
Is there any estimate of the financial loss that illegal sites cause to the regulated industry and the Brazilian government?
We do not yet have this estimate. It will only be possible to make this type of survey from the effective start of the regulated market, in 2025.
Why, exactly, are the current tools not enough for the blocking of illegal bets?
There are technical issues that make the permanence of the block unfeasible, according to the president of Anatel himself. Today, the Secretariat of Prizes and Bets of the Ministry of Finance sends to the regulatory agency, periodically, a list of sites to be blocked. Immediately, these domains manage to replicate in others, then others and then others.
What concrete measures does ANJL propose to increase the effectiveness of blocking these sites?
ANJL has been with the president of Anatel, Carlos Baigorri, bringing suggestions for a task force to combat illegal sites, effectively blocking them. These suggestions will be announced soon.
Is this an issue that requires new laws or technical resources?
In ANJL's assessment, it will be necessary to give greater autonomy to Anatel for the block, similar to what happened in the fight against clandestine boxes that bypassed subscription televisions. This autonomy will have to come through specific legislation.
Are there examples of other countries that have successfully combated illegal sites?
Yes. The most emblematic examples we have are the United States, the United Kingdom, and Australia.
One of the major problems with illegal sites is the ease of creating new pages, with new domains, as soon as one is blocked. Does ANJL see other technological methods, besides blocking via Anatel, as a solution to combat illegal sites?
With greater autonomy from Anatel, the speed of the block will be much greater. And then, as soon as the illegal site is detected and Anatel is aware, the block will be carried out, thus preventing the site from having a long life and causing damage to bettors. In addition to the blocks, it is extremely important to combat the means of payment that allow the operation of the illegals.
How does the sector view the role of payment methods and banks in combating illegal sites?
They must also be part of this combat, since, according to the legislation, any financial institution that agrees to operate transfers to illegal platforms, not authorized by the Federal Government to operate in Brazil, will also be committing illegality.
What is the impact of the growth of illegal sites on the credibility of companies that operate legally?
Considering the various harmful practices of these sites, such as lack of concern for bettors who exhibit compulsive disorders; advertising targeted at the child and adolescent audience; gaming habits that encourage indebtedness, the spread of these illegal sites with mostly rigged games directly impacts the credibility of serious companies.
Unfortunately, public opinion, including the media, ends up putting everyone "in the same group", as if they were all the same. This greatly harms the image and reputation of the sector. Therefore, ANJL has positioned itself and coordinated various actions to disseminate information and awareness campaigns, to separate the wheat from the chaff.
What is the role of awareness campaigns in combating illegal betting sites?
The main role is to ensure an integrious and responsible market. Without responsibility, there is no viability for operations. And there is also no way to defend an industry that follows all the rules set by the regulator and that has to coexist with the existence and free operation of illegal platforms. A scenario like this would make the regulation of the market ineffective, promoting an unfair, confusing, and dangerous environment for bettors in Brazil.
Is the current regulation sufficient to combat illegal advertising on social networks and the strategies for attracting new customers from irregular sites?
The regulatory framework approved by the National Congress, through Law 14.790/2023, and detailed by the Secretariat of Prizes and Bets (SPA), through the publication of various ordinances, is one of the most rigorous and complete in the world. This is a consensus in the industry itself.
However, a strong inspection system is necessary, which works in practice. We are confident that Brazil will have this through the action of various actors, both from the Public Power and the private sector. This joint work will be essential to curb the activities, or at least reduce them to the maximum, of illegal bets.
What can be done to guide the consumer away from illegal sites and direct them to a healthy, regulated, and safe market?
ANJL believes that it is up to both the industry and the Public Power, as it is their competence to regulate, to promote awareness campaigns. As is known, Brazil is a country of continental dimensions and without, for example, practically any financial education. This is a historical characteristic that does not impact only the betting sector, but various others.
What should be the communication to help bettors?
In this scenario, we, from ANJL, along with other industry agents, have already been making various disclosures to the population that gambling should be seen as entertainment, a moment of fun, and not as an investment or an extra source of income. This reinforces the importance of the regulated market, since illegal bets will never take such action.
What do legalized bets expect for the Brazilian market in 2025?
A strong, thriving, regulated, integrious, and safe market. As with the beginning of any new market, this will not happen overnight. But we believe that over this first year of regulation in force, the country will already make significant progress and make the necessary adjustments to provide an environment as healthy and promising as possible for both bettors and betting houses.
The process of regulating bets is almost at the end. What is the market's view on the process?
We evaluate the progress of the regulation process positively. It is clear that there have been and still are some adjustments being made. It is natural that this happens in a market that involves so many players, of various nationalities, and that moves so many resources. We reiterate that, in our view, the work of both the Ministry of Finance and the Ministry of Sports, and more recently, Anatel, is being done in the best possible way.
It is important to emphasize that all the debates held on the subject are relevant for the improvement of the legislation, so that Brazil can be a case for other countries that have not yet regulated the exploitation of sports betting and online games.
Is there anything you would like to add for the public?
As president of ANJL, I think it is important to reinforce our main message to bettors: play, have fun on regulated, licensed platforms by the government. Do not take risks and do not risk your money on clandestine bets because this habit will only bring financial losses and harm to your health. Bet responsibly, with balance and awareness that it is just a moment of fun, nothing more.
Source: UOL Bets
