Under current rules, regulatory body cannot guarantee that sites reported by the Ministry of Finance are truly blocked
"The way things are today, we’re just treading water. The blocking measures are highly ineffective," said Carlos Baigorri, president of Anatel, to Folha. "They’ve handed me a hot potato, and I’m saying: this [low effectiveness] will end up being a problem for the entire government."
According to Baigorri, the challenges stem from multiple issues, ranging from a lack of technology to monitor enforced blocks to the absence of regulatory power over a critical economic player for internet functionality: the DNS operator.
The DNS operator functions like a massive digital phonebook: users input the website name they want to access (starting with www), and the operator identifies the corresponding IP address to direct the access.
When Anatel orders the blocking of illegal betting platforms, it relies on a list of IP addresses currently used by those sites. However, nothing stops the betting platforms from bypassing this block by asking DNS operators to replace the old IP address in the "phonebook" with a new one outside the block.
This tactic was previously used by X (formerly Twitter) to circumvent court rulings ordering the suspension of the platform in Brazil.
“It’s as if they’re saying, ‘My new number is this, so whenever someone types 123bet, redirect them to this new number.’ Meanwhile, I’m blocking an old number, allowing the site to function again. The problem is that the Brazilian government lacks regulatory, oversight, and enforcement authority over these DNS operators,” Baigorri explained, adding that many such operators are based abroad.
In the case of X, a Supreme Court decision allowed Anatel to act against the DNS operator, closing identified loopholes. However, this ruling applied only to that specific case.
In practice, this means that the 5,200 illegal betting sites blocked by the government are free to resume operations using the same maneuver, until authorities can identify the new IP addresses and submit updated suspension requests.
"There’s a limit to the state’s capacity to make these blocks effective," Baigorri admitted. He noted that Anatel has submitted a proposal to the Ministries of Finance and Sports for a provisional measure (MP) to improve regulation and grant administrative policing power over DNS operators.
There are three possible paths. The first is to expand Anatel's powers by amending the General Telecommunications Law to state that the agency has the power to regulate, monitor and sanction these economic agents.
The second option is to change the law that regulated bets to expand the only paragraph that deals with blocking to state that DNS operators are also required to comply with these decisions. The third path would be to modify the Internet Civil Rights Framework to expand the guidelines for blocking websites.
"If the State wants to have some power of command in the Internet environment, these agents must also be subject to State control," says Baigorri.
He clarified that the goal isn’t to arbitrarily take down DNS operators, as doing so could disrupt not only betting sites but also government websites. Instead, regulation would ensure their cooperation in dismantling illegal platforms.
"A rule without sanctions for non-compliance is just a best practice, not an obligation. So, we must create the [requirement and] sanction. And we know how to calibrate these sanctions," he stated.
Even if Anatel gains greater regulatory authority, the agency currently lacks the resources to monitor compliance with blocking measures.
"Anatel doesn’t have a red button to take sites offline. We notify telecom companies—about 20,000 in total, including major ones and small local providers across Brazil. When you’re dealing with 3,000 sites across 20,000 networks, that’s 60 million checks. Today, we cannot guarantee effective blocking," Baigorri acknowledged.
While Anatel can closely monitor major operators covering 80–90% of user access, it lacks the capacity to oversee the remaining networks comprehensively.
The agency needs BRL 7.5 million (US$1.3m) to procure a technological tool for better suspension tracking but has yet to secure full funding.
Baigorri warned that the government’s inability to curb illegal betting could harm the regulated market, as companies that have paid licensing fees to operate legally in Brazil may feel disadvantaged.
In his view, the solution combines legislative improvements with measures that deter users from accessing illegal platforms, such as creating access difficulties and blocking payment methods used by these sites.
"Imagine putting money into an illegal betting site, and the next day it’s offline. Even if it comes back in two hours, for those two hours, your money had vanished. I can’t eliminate illegal betting entirely, but I can make it so unappealing that no one wants to play on these platforms."
The president of Anatel also warns that backtracking on the regulation of betting, repealing the law or declaring it unconstitutional, will not have a greater effect in terms of curbing the activity in Brazil. "There is no way to put the genie back in the bottle."
However, he criticizes the current regulatory model adopted in Brazil, with oversight centralized in the SPA (Secretariat of Prizes and Bets), linked to the Treasury — focused on taxation and which has a different view from the Ministry of Sports, concerned with the weight that this market has for soccer clubs, for example.
"If you want to follow the regulatory textbook, first [you need] a collegiate body, not just one guy. Then, every rule that is made has to have a regulatory impact analysis, public consultation, discussion with the agents. People decided to regulate, but they are not following the regulatory textbook," criticizes Baigorri.
Source: Folha
