UOL Apostas - 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 primary issue is predatory and unfair competition since these platforms do not pay taxes or bear the costs associated with the structure needed to operate in Brazil, as defined by Law 14,790/2023. Additionally, these companies choose to remain clandestine, disregarding the well-being and health of bettors and ignoring protections for children and adolescents.
Recently, we’ve seen some betting companies exiting the Brazilian market. Is there a risk of more brands leaving due to illegal sites?
This risk does exist if illegal markets are not effectively tackled. As with any business, betting company executives assess all risks before deciding to establish and operate in Brazil, especially since starting January 1, 2025, they will need to comply with numerous obligations, including financial ones, such as the payment of BRL 30 million for the federal license. If investors perceive the market conditions as unfavorable to achieving expected returns, it is likely that those already operating here might decide to leave.
Is there an estimate of the financial losses illegal sites cause to the regulated industry and the Brazilian government?
We don’t have this estimate yet. This type of assessment will only be possible after the regulated market begins operating effectively in 2025.
Why are current tools insufficient to block illegal betting sites?
There are technical issues that make blocking unsustainable, according to the president of Anatel (Brazil’s telecom regulatory agency). Currently, the Ministry of Finance’s Secretariat of Prizes and Betting periodically provides Anatel with a list of sites to be blocked. However, these domains are quickly replicated with new ones.
What concrete measures does ANJL propose to enhance the blocking of these sites?
ANJL met with Anatel's president, Carlos Baigorri, to propose a task force to effectively combat illegal sites by blocking them. These suggestions will be announced soon.
Is this an issue requiring new laws or technical resources?
According to ANJL, Anatel needs more autonomy to enforce blocks, similar to how they tackled illegal cable boxes bypassing subscription services. This autonomy would likely require a specific law.
Are there examples of other countries successfully combating illegal sites?
Yes. The most prominent examples include the United States, the United Kingdom, and Australia.
One major challenge is how easily illegal sites create new domains once blocked. Does ANJL consider other technological methods beyond blocking via Anatel to combat illegal sites?
With increased autonomy for Anatel, blocking could occur much faster. Once an illegal site is detected and Anatel is notified, it can be blocked promptly, reducing its lifespan and preventing harm to bettors. Alongside blocking, combating payment systems that enable illegal operators is crucial.
How does the sector view the role of payment systems and banks in fighting illegal sites?
Payment systems and banks must participate in this fight. According to the legislation, any financial institution processing transfers for illegal platforms unauthorized by the federal government is also committing a violation.
What is the impact of the rise of illegal sites on the credibility of legally operating companies?
Illegal sites harm the credibility of legitimate companies due to their harmful practices, such as neglecting compulsive bettors, targeting children and adolescents in advertising, and encouraging debt through rigged games. Unfortunately, public opinion, including the media, often lumps all betting platforms together, damaging the reputation of the regulated sector. To address this, ANJL has been actively promoting campaigns to distinguish regulated operators from illegal ones.
What role do awareness campaigns play in combating illegal betting sites?
The primary goal is to uphold a responsible and ethical market. Without responsibility, operations become unviable, and the regulatory framework loses its effectiveness. Awareness campaigns ensure bettors understand the risks of illegal platforms and the benefits of regulated ones.
Is the current regulation sufficient to combat illegal advertisements on social media and client acquisition strategies by irregular sites?
Brazil’s regulatory framework, established by Law 14,790/2023 and detailed through ordinances by the Secretariat of Prizes and Betting (SPA), is among the most stringent and comprehensive globally. However, effective enforcement is vital. We are confident Brazil will achieve this through collaborative efforts between public and private entities.
What can be done to steer consumers away from illegal sites and towards a healthy, regulated, and secure market?
ANJL believes both the industry and the government must promote awareness campaigns. Brazil’s lack of financial education exacerbates the problem, and addressing this issue is critical across multiple sectors, including betting.
What should communication efforts focus on to support bettors?
ANJL and other industry players emphasize that gambling should be seen as entertainment, not an investment or source of extra income. This highlights the importance of regulated markets since illegal operators will never engage in responsible messaging.
What do legalized betting operators expect for the Brazilian market in 2025?
A robust, regulated, ethical, and secure market. As with any new market, progress will take time. However, we expect significant advances and necessary adjustments in the first year to create a promising environment for both bettors and operators.
What is the industry’s view of the regulatory process?
We see the regulatory process as positive. Adjustments are expected in such a complex market involving diverse players and significant resources. The efforts of the Ministry of Finance, the Ministry of Sports, and, more recently, Anatel, are commendable. Discussions around the topic are essential for refining the legislation and positioning Brazil as a global benchmark in regulated online sports betting.
Is there anything you’d like to add for the public?
As ANJL president, I want to reinforce our primary message to bettors: Play only on platforms regulated and licensed by the government. Avoid illegal sites, as they risk both your finances and your well-being. Gamble responsibly, keeping it as a form of entertainment and nothing more.
Source: UOL Apostas
