[By Abigail Philip David]
On Friday, Brazilian authorities began closing more than 2,000 betting websites, including some that sponsor major football teams like Corinthians and other top-tier clubs, as part of an effort to regulate the country’s online gambling industry.
Brazil, Latin America’s largest economy, is grappling with what Finance Minister Fernando Haddad described as a gambling “pandemic,” pushing the government to tighten controls on the sector.
Since the legalization of sports betting in 2018, online gambling in Brazil has operated with minimal oversight, lacking clear rules and taxation. Popular platforms offer bets on sporting events, while games like Aviator—where users bet on the flight of a virtual plane—and Fortune Tiger have also gained widespread popularity.
The government, under President Luiz Inacio Lula da Silva, has started shutting down sites that have failed to comply with new regulations set to take effect in January. The updated rules aim to address issues like fraud, money laundering, and user protection, including a ban on minors engaging in gambling.
Finance Minister Haddad stated that “any platform not yet compliant or in the process of compliance is being taken offline.”
The Ministry of Finance revealed it had flagged 2,040 “suspicious domains” and requested the telecom regulatory body Anatel to block them. Among the targeted platforms is Esportes da Sorte, a sponsor of prominent football clubs like Corinthians, Athletico Paranaense, Bahia, and Gremio de Porto Alegre.
The blocked sites will also be prohibited from advertising, including sponsorship deals with football clubs. However, over 200 sites that agreed to the new regulatory framework will be allowed to continue operating.
Brazil’s central bank estimates that approximately 24 million of the country’s 212 million people, or about one in nine Brazilians, engage in online gambling. President Lula has recently cautioned that the surge in betting is driving many low-income citizens into debt.
