On Friday, Brazilian authorities launched a crackdown on over 2,000 betting sites, including those sponsoring popular football teams like Corinthians and several other top-tier clubs, as part of a broader effort to regulate online gambling. This move comes amid growing concerns over what Finance Minister Fernando Haddad described as a “pandemic” of betting, which has prompted the government to take stronger action against the largely unregulated sector.
Since the legalization of sports betting sites in 2018, Brazil’s online gambling industry has operated with little oversight, lacking clear regulations and tax obligations. While many sites focus on sports betting, others have gained popularity for games such as Aviator, where players bet on the flight of a virtual airplane, and the online casino game Fortune Tiger. These platforms have become a significant draw for millions of Brazilians.
President Luiz Inácio Lula da Silva’s administration is now targeting sites that have not complied with new regulations set to take effect in January 2024. These regulations aim to curb fraud and money laundering, safeguard consumers, and protect minors by banning them from betting. The Ministry of Finance revealed it had identified 2,040 “suspicious domains” and requested that Brazil’s telecom regulator, Anatel, block them.
Among the sites on the government’s blacklist is Esportes da Sorte, a major sponsor of the Corinthians football club, along with Athletico Paranaense, Bahia, and Grêmio de Porto Alegre. The blocked sites will also be banned from advertising and sponsoring football teams. However, over 200 other betting platforms have agreed to comply with the upcoming rules and will be allowed to continue operations.
The impact of online gambling in Brazil has been significant, with the central bank estimating that around 24 million Brazilians—roughly one in nine—engage in online betting. Recently, Lula expressed concern about the rise in betting-related debts among low-income Brazilians, highlighting the social costs of unregulated gambling. The government’s new regulations represent a decisive step toward reigning in the sector and mitigating its harmful effects.
