The Bet Legal platform reported an alarming rise in illegal online betting sites in Brazil, identifying 415 new domains just after the government announced a provisional ban on gambling. Following President Lula’s announcement on Friday at 6 PM, 295 unauthorized domains were recorded on the same day. By Saturday alone, 294 additional illegal sites had emerged, and by Sunday at 7:10 PM, the total reached 710, a staggering 141% increase within 48 hours.
This assessment was conducted by Bet Legal in collaboration with Iron Security, a cybersecurity and AI firm. Their system cross-references data from various official sources, including the Official Gazette of the Union and notifications directed to Anatel, Brazil's telecommunications regulatory agency. Technical evaluations check for connectivity, secure protocol usage, and ownership records.
Between January 1 and September 22, the Secretariat of Prizes and Bets sent 57,691 domain addresses to Anatel for restriction, as reported by Poder360. It's important to note that these figures do not map to unique companies, as one company may operate multiple variations of the same domain.
The National Association of Games and Lotteries (ANJL) has voiced concerns that a prohibition on gambling will not eradicate the illegal market. “Without authorization and the corresponding regulatory obligations, the underground market will continue to thrive,” the association stated.
ANJL President Plínio Lemos Jorge reflected that such a surge in illegal online betting was anticipated. He said, “The clandestine websites have expanded their offerings and continue to operate outside the law and oversight. Now, they will take advantage of the prohibition of legal betting to attract bettors to the illegal market.”
The ANJL estimates that the government’s actions have pushed over 30 million bettors into the illegal gambling scene, resulting in the forfeiture of billions in potential revenues.
To combat illegal operations, the government successfully removed 506 gambling websites following the enforcement of Provisional Measure 1,394, with efforts coordinated by the Ministries of Justice and Finance. This initiative aims to disrupt access to these clandestine platforms and deter the establishment of new ones.
Additionally, authorities discovered 43 Telegram channels and groups promoting illegal betting, which collectively have over 212,000 members. The Ministry of Finance notes that collaborations with other agencies are ongoing, striving to minimize the illegal gambling market in Brazil.
