Following President Lula's announcement of an online betting ban, the platform Bet Legal reported the creation of 415 new illegal betting sites in Brazil. By 6 p.m. on Friday, when Lula made the announcement, 295 unauthorized domains had been detected. On Saturday alone, 294 illegal sites emerged, leading to a total of 710 identified by 7:10 p.m. on Sunday, reflecting a staggering 141% increase within just two days.
The Bet Legal report, produced in partnership with Iron Security—a firm specializing in cybersecurity and artificial intelligence—utilizes a system that cross-references data from the Official Gazette of the Union, state gazettes, and notifications sent to Anatel, the Brazilian telecommunications regulatory authority. The technical evaluations include checks on connectivity, the use of secure protocols, and domain ownership.
The Secretariat of Prizes and Bets reported that between January 1 and September 22, 57,691 addresses were submitted to Anatel for restriction, according to Poder360. This number does not necessarily reflect individual companies, as single entities can manage multiple domain variations.
The National Association of Games and Lotteries (ANJL) has criticized the ban, asserting that prohibition will not eradicate the illegal market. "Without authorization, without the same regulatory obligations and operating outside the scope of oversight, the clandestine market continues to find space," the ANJL stated.
ANJL President Plínio Lemos Jorge remarked on the expected rise of illegal online betting, indicating that clandestine websites have broadened their offerings while evading legal constraints. He noted, "Now, they will take advantage of the prohibition of legal betting to attract bettors to the illegal market."
The ANJL claims that this ban could cost the government billions in revenue and has pushed over 30 million bettors into illegal gambling activities.
In response to the growth of illegal sites, the Brazilian government has managed to take down 506 illegal gambling websites following the implementation of Provisional Measure 1,394, as part of actions led by the Ministries of Justice and Finance. This initiative aims to restrict access to clandestine platforms and stop new sites from offering illicit gambling services.
Additionally, authorities uncovered 43 channels and groups on Telegram that are promoting illegal betting, which collectively have over 212,000 members. The Ministry of Finance confirmed that these efforts are being carried out in collaboration with other agencies to diminish the prevalence of the illegal market in Brazil.
