Brazilian authorities have initiated the closure of over 2,000 betting websites, including those sponsoring prominent football teams like Corinthians, as part of a significant move to regulate online gambling. This action arises from concerns about a growing betting “pandemic,” as described by Finance Minister Fernando Haddad, pushing the government to intensify oversight in this sector.
Since the legalization of sports betting in 2018, Brazil has faced a rampant regulatory environment devoid of rules or taxes for online gambling. Many Brazilians have become engaged in various betting games, including popular options like Aviator and Fortune Tiger, alongside traditional sports betting.
The government, under President Luiz Inacio Lula da Silva, has announced stringent measures targeting sites that fail to comply with new regulations set to commence in January. These regulations aim to mitigate fraud, money laundering, and ensure the safety of users, including a ban on underage betting.
In a statement, Haddad emphasized, “Anyone who is not regularized, or in the process of being regularized, is being taken off the air.” The finance ministry has identified 2,040 suspicious domains and has instructed the telecommunications regulatory agency to block these sites.
Notable among those targeted is Esportes da Sorte, a sponsor of Corinthians and other major clubs like Athletico Paranaense, Bahia, and Gremio de Porto Alegre. The finance ministry has indicated that these betting websites will be prohibited from advertising, including sponsorships of football clubs.
However, more than 200 sites have agreed to adhere to the new regulations and will be permitted to continue their operations. According to Brazil’s central bank, approximately 24 million of the country’s 212 million residents—about one in nine individuals—engage in online gambling. Recent statements from Lula have highlighted concerns that betting is leading many low-income Brazilians into debt.
