**Illegal Betting Operations Present Challenges in Brazil Ahead of Licensing Launch**
Earlier this week, Anatel’s chief, Baigorri, expressed concerns about the challenges the agency faces in blocking illegal betting platforms. The Secretariat of Prizes and Bets (SPA) had deemed these sites unlawful in anticipation of the licensed gambling market’s debut on January 1, 2025.
Last November, the SPA provided Anatel with information on over 5,200 domains linked to illegal betting sites as part of its efforts to curtail the illicit market. Despite these efforts, Baigorri compared the task to an impossible endeavor, acknowledging the agency’s inability to block all such sites effectively.
Baigorri’s assessment is echoed by the National Association of Games and Lotteries (ANJL), which is pushing for “urgent measures” to address the rapid growth of illegal sites. It is common knowledge that such operations quickly circumvent IP blocking by setting up mirror sites to redirect users once a domain is shut down.
Currently, there are still more than 2,000 illegal domains active in Brazil, as revealed by the ANJL through recent discussions with its partners. Plínio Lemos Jorge, the association’s president, is advocating for more robust measures to protect legal operators and their clientele.
“Legitimate betting platforms cannot compete with illegal sites,” Lemos Jorge stated. “We must separate legitimate operators from illegal ones, and this can only be achieved through a determined fight against unauthorized sites, which harm society and damage the reputation of legal operators.”
**Addressing Illegal Betting: A Major Concern**
Baigorri has called for enhanced legal authority for Anatel to strengthen its capacity to implement blocking measures effectively. Currently, Anatel can primarily monitor only the largest companies, covering 80%-90% of the market, and is seeking BRL7.5 million (£1 million/€1.2 million/$1.3 million) in funding to expand its technological capabilities for better oversight.
The ANJL identifies illegal operators as the primary challenge facing the industry as the licensed market approaches its launch. “The ongoing presence of illegal platforms — which engage in deceptive advertising, avoid taxes, and offer no player support or security — poses a significant risk to the regulated market and Brazil’s international reputation,” the ANJL elaborated.
In an interview with iGB on November 27, Aposta Ganha CCO Hugo Baungartner proposed that blocking financial transactions could be the most effective way to counteract unlawful operators in Brazil. The Brazilian government has previously stated that payments to illegal operators, particularly through the widely-used instant payment service Pix, will be halted.
“I believe the only viable solution is through payment methods, particularly Pix,” Baungartner remarked. “Identifying those who operate illegally and use Pix for transactions is the key, as blocking IPs or URLs has proven ineffective in the long run.”