The Bet Legal platform reported the emergence of 415 new illegal betting sites following the government’s provisional measure that banned gambling in Brazil.
After President Lula announced the online betting ban by 6 p.m. on Friday, 295 unauthorized domains were identified. The following day alone saw the creation of 294 illegal sites, pushing the total to 710 by 7:10 p.m. on Sunday, reflecting a staggering 141% spike within just two days.
Bet Legal's analysis is in collaboration with Iron Security, a cybersecurity and AI firm. Their system cross-references data from Brazil’s Official Gazette, state gazettes, and notifications sent to Anatel, the Brazilian telecommunications regulatory agency. Their technical evaluations include checking for connectivity, secure protocol usage, and record ownership.
From January 1 to September 22 of this year, the Secretariat of Prizes and Bets submitted 57,691 addresses to Anatel for restriction, as reported by Poder360. These addresses do not necessarily represent individual companies, as a single company might operate numerous variations of a domain.
The National Association of Games and Lotteries (ANJL) has raised concerns that outright prohibition will not eliminate the illegal gambling market. ANJL stated, "Without authorization, without the same regulatory obligations and operating outside the scope of oversight, the clandestine market continues to find space."
Plínio Lemos Jorge, ANJL President, indicated that the rise of illegal online betting was predictable. He stated, "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 the government’s actions have driven more than 30 million bettors into illegal gambling and have resulted in the loss of billions in potential revenue.
In response to the ban, the government successfully shut down 506 illegal gambling websites under Provisional Measure 1,394. The Ministries of Justice and Finance led this initiative, aiming to disrupt access to clandestine platforms. Alongside this, authorities found 43 Telegram channels and groups promoting illegal betting, which collectively have more than 212,000 members.
The Ministry of Finance reported that this operation is being conducted in collaboration with other agencies, emphasizing the commitment to curtail the illegal gambling market in Brazil.
