Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL), has warned that illegal competition could force licensees out of the regulated betting Brazil market. According to Lemos Jorge, the illegal market must be effectively tackled to prevent an exodus of legal operators.
The ANJL president’s remarks come as Brazil prepares to launch its legal market on January 1, 2025. With the go-live date now just two weeks away, stakeholders warn of the threat posed by illegal operators if they are not properly tackled. These sites negatively impact the industry and society, as they do not pay taxes and have no concerns for the health of bettors, Lemos Jorge said.
According to an ANJL report, over 2,000 illegal sites still operate in Brazil. Attempts to block these operators were previously compared to “mopping up ice” by Carlos Baigorri, the president of the National Telecommunications Agency (Anatel). Baigorri called for the agency to be given increased powers to aid these efforts.
Lemos Jorge echoed the call for a more effective way to clamp down on the black market. Failure to do so may lead to legal operators turning their back on Brazil, leading in consequence to a rise in illegal betting. In turn, this would greatly hinder efforts on player protection and tax collection.
“If investors assess that the market scenario is not favorable to the expected returns, those who are already here may certainly leave the country,” Lemos Jorge told UOL Apostas. This would lead to the expansion of illegal websites, which negatively impact the industry and society itself “in several ways.”
“The main one is predatory and unfair competition since these platforms will not collect taxes nor will they have the costs inherent to the entire structure necessary for installation and operation in Brazil,” the ANJL president explained. “These are companies that wish to remain underground, without any concern for the well-being and health of bettors or the protection of children and adolescents.”
In the interview, Lemos Jorge echoed the call for Anatel to obtain more power to block illegal websites. The ANJL met with the National Telecommunications Agency last week to explore further measures that could be taken, with suggestions to be released in the coming weeks.
“It will be necessary to give Anatel greater autonomy to block. This autonomy should come through a specific law,” Lemos Jorge said. “With Anatel’s greater autonomy, the blocking process will be much faster. As soon as the illegal site is detected and Anatel becomes aware of it, the blocking will be carried out, thus preventing the site from having a long life and causing losses to bettors.”
Amid Anatel’s struggles to remove illegal sites, payment blocking has emerged as a potentially effective measure to combat the black market. Lemos Jorge said this strategy will be a key component of the government’s plan to counter illegal sites, adding that financial institutions that agree to operate transfers for illegal platforms will also be committing an illegal act.
