The National Association of Games and Lotteries (ANJL) has warned that a proposed ban on licensed online casinos in Brazil could lead to a significant increase in the illegal gambling market, swelling from its current 41% to as much as 82%. This alarming projection comes from a technical study conducted by the association, which attributes the potential rise to the vast number of unauthorized gambling websites operating without the approval of the Ministry of Finance.
Between June and August of this year, ANJL noted a daily average of 13.7 new clandestine websites were registered, revealing a growing concern over illegal online betting. During a monitoring period from September 11 to 18, the ANJL identified 6,409 illegal betting domains that were accessible to users in Brazil.
Plínio Lemos Jorge, president of ANJL, emphasized that if a ban is enacted, it would drive millions of gamblers toward these illicit websites, most of which are based overseas and evade taxation. “Our study showed that of the websites located outside the national scope, 55.8% use a distribution network that hides the original hosting,” Lemos Jorge stated. He highlighted that nearly all (98.3%) of these domains lack a '.br' extension, indicating their foreign origins. He cautioned that measures intended to protect bettors would instead lead to greater accessibility of unregulated platforms.
The potential repercussions of this ban extend beyond user safety, as it threatens to deprive the Brazilian economy of between BRL3.6 billion ($700.9 million) and BRL7.4 billion in annual revenue. Lemos Jorge pointed out, "In other words, Brazil loses in every sense. We will have millions of people who will not stop gambling. They will simply start accessing these sites, which do not collect any taxes whatsoever."
He also underscored the added risk for vulnerable social groups, which the government aims to protect. These unregulated platforms lack necessary safeguards that licensed services provide, such as options for self-exclusion or restrictions on beneficiaries of social programs, leaving users without adequate protection for their financial and mental well-being.
