Brazil is advancing online and land-based gaming options, leading to greater scrutiny of the market
The Brazilian government is stepping up efforts to combat the black market in gambling as the country prepares to launch its regulated betting market on January 1, 2025. With concerns arising over the proliferation of offshore gambling websites, the government is seeking to forge partnerships with major social media platforms such as Google and Meta to curb illegal advertising.
The long lead-up to the legalization of betting in Brazil has allowed numerous unregulated operators to establish a presence in the South American country. While over 110 operators have applied for licenses, many more are believed to be active without proper authorization.
To address this, the government has issued Normative Ordinance No. 827, which requires all operators to secure a license by December 31, 2024. Those who fail to do so will face severe penalties, including fines of up to BRL2 billion (US$364.7 million) and a ban on applying for a license for up to 10 years.
The government’s strategy includes working closely with social media giants to remove advertisements for illegal gambling sites. By limiting the visibility of these sites, the authorities hope to steer bettors toward the legal market. Additionally, licensed operators will be required to use the Bet.br domain, making it easier to identify legitimate platforms and differentiate them from offshore entities.
Regis Dudena, the head of Brazil’s secretariat of prizes and betting, has asked to use every available tool to eliminate the black market once the regulated market goes live. The government is also discussing with the Central Bank of Brazil to identify and block payments to illegal operators, further tightening the noose on unregulated gambling.
New regulations under Normative Ordinance No. 1,231 aim to curb the influence of celebrities and social media influencers in promoting gambling. The ordinance requires operators to ensure that their advertising does not portray gambling as socially desirable or linked to personal success. This move comes in response to past incidents where influencers promoted fraudulent schemes, leading to significant financial losses for many individuals.
The Brazilian government’s multi-faceted approach reflects its commitment to establishing a safe and regulated betting environment. By collaborating with social media platforms, financial institutions, and internet service providers, the government hopes to reduce the black market’s influence and guide bettors toward authorized and secure betting options.
