BUSINESSINTERNATIONAL

Brazil shuts down over 2,000 betting sites

Brazil on Friday initiated the shutdown of over 2,000 betting sites, including some that sponsor well-known football clubs such as Corinthians and other first-division teams, as part of a broader push to regulate the booming online gambling sector. Latin America’s largest economy is grappling with what Finance Minister Fernando Haddad described as a betting “pandemic,” which has led the government to tighten regulations on the industry.

Online gambling in Brazil has largely operated without oversight since sports betting sites were legalized in 2018. The lack of regulation meant that these platforms were not subject to rules or taxes, allowing them to grow rapidly and freely. Popular platforms not only allow bets on sports but also host addictive games like Aviator, where users bet on the flight of a virtual airplane, and online casino games like Fortune Tiger.

The government of President Luiz Inácio Lula da Silva is now taking decisive action against sites that have failed to comply with the new regulations set to come into effect in January 2025. The new rules aim to address concerns about fraud, money laundering, and user protection, such as preventing minors from betting.

“Anyone who is not regularized, or in the process of being regularized, is being taken off the air,” Finance Minister Haddad emphasized in a statement, underscoring the seriousness of the crackdown.

The Ministry of Finance revealed that it had identified 2,040 “suspicious domains” and had asked the telecom regulatory body, Anatel, to block them. Among the sites on the blacklist is Esportes da Sorte, a platform that sponsors top Brazilian football teams, including Corinthians, Athletico Paranaense, Bahia, and Gremio de Porto Alegre.

In addition to blocking these sites, the ministry is also moving to prohibit them from advertising, which includes their sponsorship of football clubs. The government’s efforts aim to curb the unregulated spread of online gambling while ensuring compliance with the new standards.

Meanwhile, more than 200 betting sites have agreed to abide by the upcoming rules and will be allowed to continue operating under the revised regulations. The move is seen as a step toward restoring control over Brazil’s fast-growing and often unchecked online gambling industry.

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