Carlos Baigorri, the president of Brazil’s National Telecommunications Agency (Anatel), says the scale of the task in blocking illegal gambling sites targeting the country is vast and he cast doubt on its ability to force unlicensed operators from the market.
Anatel has been tasked with taking down illegal sites by the Secretariat of Prizes and Bets (SPA). To date the SPA has sent the agency three lists comprising more than 5,200 domains to be blocked in Brazil.
Any site not on the SPA’s list of approved operators for the transition period between 1 October and 31 December is now considered an illegal operator in Brazil and liable to be blocked by Anatel.
Mopping up ice and hot potatoes
However, Baigorri warned the sheer volume of illegal gambling sites means Anatel cannot guarantee all will be blocked. The authority needs more legal power to effectively enforce blocking orders, he said.
“Anatel does not have a red button that takes websites offline,” he continued. “We notify all telecommunications companies. There are 20,000, roughly, because we are talking about the big ones, but [also] these little ones in the interior of Brazil.
“When you talk about 3,000 websites on 20,000 networks, that is 60 million checks. Today, we cannot guarantee that the blocking is being carried out.
“As things stand today, we are just mopping up ice, and the blockade we have in place is very ineffective,” Baigorri explained to Folha. “They put a hot potato in my lap and I’m telling you, this [limited ability to block sites] is going to be bad for the entire government.”
Why is Anatel struggling to block illegal sites?
According to Baigorri, Anatel lacks the technology to effectively shut down illegal domains. Sites can circumvent blocking orders by having domain name system (DNS) providers update the IP address, meaning they come back online.
Ultimately while it can effectively monitor the largest companies making up 80% to 90% of the market, the smaller segment is difficult for Anatel to track he explained.
To ramp up its capabilities Anatel requires around BRL7.5 million (£1 million/€1.2 million/$1.3 million) to invest in technology, Baigorri said.
Without this funding Baigorri fears the ongoing difficulty with website blocking is putting bettors at risk. He also called on other stakeholders such as payments companies to step up efforts to limit access to illegal sites.
“Imagine, you put money into a site that is illegal, the next day the site is down,” Baigorri said. “Even though it comes back in two hours, in those two hours your money was gone. I have no way of removing the site from reality, but I’m going to make it so bad that no one will play it.”
Anatel’s pitch to enhance its powers
Anatel has sent a provisional measure proposal to the government to increase its power over DNS operators. There are three strategies Anatel can use to enhance its capabilities to block sites according to Folha.
The first is for the General Telecommunications Law to be amended and give Anatel additional power to regulate, monitor and sanction internet sites.
Additionally, the law to regulate betting could be changed to ensure DNS operators comply with the SPA’s blocking orders. Finally, the Internet Civil Rights Framework could also be amended to allow for more effective site blocking.
“There is a limitation on the state’s ability to make this blocking effective,” Baigorri said. “If the state wants to have some power to command the internet environment, these agents must also be subject to state control.”
“They are not following the regulation textbook”
Baigorri’s comments come amid an ongoing battle over whether the betting laws are unconstitutional.
A two-day hearing at the Federal Supreme Court was held earlier this month after the National Confederation of Trade in Goods, Services and Tourism (CNC), the third biggest trade union in Brazil, filed an ADI (Ação Direta de Inconstitucionalidade) to deem the betting laws unconstitutional.
The rapporteur of the ADI, minister Luis Fux, says the laws’ constitutionality will be assessed over the first half of 2025.
And while Baigorri believes there is “no way to put the genie back in the bottle”, he was also critical over the betting regulations in Brazil.
“If you want to follow the regulation textbook, first [you require] a committee, it’s not just one guy alone,” Baigorri outlined. “Then, every rule you make has to have a regulatory impact analysis, public consultation, discussion with the agents.
“People decided to regulate, but they are not following the regulation textbook.”
