A recent analysis by the Bet Legal platform revealed a striking surge in the number of illegal betting sites in Brazil, totaling 415 new domains created following the announcement of a gambling ban by President Lula. This ban was made public on Friday at 6pm, at which point 295 unauthorized betting sites had already been identified. The following day alone saw the creation of another 294 illegal sites, pushing the total to 710 by Sunday at 7:10pm — a staggering 141% increase in just two days.
The survey, conducted in collaboration with Iron Security, a cybersecurity and artificial intelligence firm, employs a sophisticated system that cross-references data from the Official Gazette of the Union, state announcements, and notifications to Anatel, Brazil's telecommunications regulatory authority. This technical analysis checks for connectivity, use of secure protocols, and ownership records.
Between January 1 and September 22, the Secretariat of Prizes and Bets reported sending 57,691 addresses to Anatel for restriction, according to information from Poder360. However, these figures do not represent individual companies, as multiple variations of a domain can be operated by the same firm.
The National Association of Games and Lotteries (ANJL) has voiced its concerns regarding the ineffectiveness of the ban in eliminating the illegal market. "Without authorization and the relevant regulatory framework, the clandestine market continues to thrive," the ANJL stated. Its president, Plínio Lemos Jorge, described the rise of illegal online betting as an anticipated outcome. He noted, "The clandestine websites have expanded their offerings and continue to operate outside the law and oversight. They will now take advantage of the prohibition of legal betting to lure bettors to the illegal market."
The ANJL further claimed that in addition to losing billions in potential revenue, the government has inadvertently forced over 30 million bettors into illegal gambling.
In response to the new regulations introduced by Provisional Measure 1,394, the Brazilian government has successfully taken down 506 illegal gambling websites through the joint efforts of the Ministries of Justice and Finance. This crackdown aims to limit access to clandestine platforms and deter the formation of new illegal betting sites. Authorities also identified 43 Telegram channels and groups promoting illegal betting activities, which collectively have over 212,000 members. The Ministry of Finance stated that this initiative is part of a broader cooperation with various agencies aimed at reducing the prevalence of illegal gambling in Brazil.
