Over 2,000 illegal betting sites still live in Brazil, ANJL echoes Anatel’s concerns over “inefficient” IP blocking

ANJL reveals 2,000 illegal sites are still operating in Brazil. This follows president of the telecom’s regulator (Anatel) Carlos Baigorri’s warning that blocking illegal betting sites is an inefficient measure.

Earlier this week, Anatel’s chief Baigorri warned that it was struggling to sufficiently block all the illegal betting sites that gambling regulator, the Secretariat of Prizes and Bets (SPA), had deemed illegal ahead of the licensed betting market’s launch on 1 January 2025.

The SPA sent details of over 5,200 domains belonging to illegal betting sites to Anatel in November as it sought to crackdown on the illegal market. The regulator was tasked with ensuring those domains were taken down but Baigorri this week likened Anatel’s efforts to “mopping up ice”, admitting the agency lacks the capacity to block all illegal sites.

The ANJL supports Baigorri’s sentiments, calling for “urgent blocking” to deal with the “alarming scenario of proliferation” of illegal sites.

It is widely known in the sector that illegal operations are quick to circumnavigate IP blocking efforts by launching mirror sites to direct payers to as a domain has been taken down.

Over 2,000 illegal domains are currently still operational in Brazil, the ANJL has said, based on conversations it has had with its operator partners in recent days.

The association’s president Plínio Lemos Jorge is calling for a robust response to IP blocking, to protect both licensed operators and players.

“Serious and legal betting sites will not be able to withstand the competition from illegal sites,” Lemos Jorge explained.

“We need to separate the wheat from the chaff and this will only happen with a tough fight against illegal sites, which have harmed society and tarnished the image and reputation of legal betting sites.”

Illegal betting a primary concern for operators in Brazil

Baigorri called for Anatel to be given additional legal power to increase its ability to effectively enforce blocking orders.

Anatel said it can only effectively monitor the largest companies, which make up 80%-90% of the market. The agency is requesting approximately BRL7.5 million (£1 million/€1.2 million/$1.3 million) in funding to invest in technology that would increase its coverage.

ANJL believes illegal operators are the industry’s greatest challenge ahead of the licensed market’s launch on 1 January 2025.

“The continued operation of illegal websites – which use misleading advertising, do not collect taxes and do not provide any support or security to bettors – carries with it the dangerous potential to weaken the entire regulated environment and position Brazil as a pariah in the global betting market,” the ANJL added.

In an interview with iGB on 27 November Aposta Ganha CCO Hugo Baungartner suggested payment blocking could be the optimal way to counter illegal operators in Brazil.

The government has previously announced payments made to illegal operator Pix will be blocked. Pix, an instant payment service managed by Brazil’s Central Bank, is widely used across the country’s gambling industry.

“I think the only way to do it is through payments methods, through Pix,” Baungartner said.

“If they really follow the leads regarding who is operating illegally and providing Pix, that’s the only way [to counter illegal sites] because blocking IPs or URLs doesn’t have any real effect in the long term.”