Government strengthens restrictions on illegal betting
Given the exponential growth of the online gambling market, the Brazilian government mom database has taken strict measures to try to regulate the sector. Since the beginning of 2024, several betting platforms have been blocked for not complying with the rules established by national legislation. Among the main actions, the blocking of betting sites that operate without licenses or in violation of consumer protection and money laundering prevention rules stands out.
According to the Ministry of Economy, these measures are part of a broader strategy to protect Brazilian consumers from fraud and ensure that the gambling market is properly regulated and taxed. However, despite the blockades, illegal platforms have been quick to adapt, using sophisticated methods to keep their websites active.
Alternative sites and circumvention methods
With unregulated platforms being blocked, illegal gambling operators have been turning to “mirror” websites and decentralized networks to get around the bans. A “mirror site” is an exact replica of an original website, but operates on a different domain, making it harder for authorities to identify and block it.
Furthermore, the use of VPNs (virtual private networks) and cryptocurrencies has also been a recurring strategy. VPNs allow users to mask their real locations by connecting to servers in other countries where betting sites are not blocked. Cryptocurrencies, on the other hand, due to their decentralized and anonymous nature, facilitate financial transactions outside the control of authorities.
These methods make combating illegal gambling even more challenging. As cybersecurity expert Eduardo Nogueira explained, “the ability of illegal gambling platforms to operate in a kind of ‘grey zone’ of the internet makes it difficult to effectively monitor and block their activities.”
Illegal betting, by escaping the imposed regulations, creates a significant impact on the Brazilian economy and society. From an economic point of view, tax evasion generated by the operation of clandestine betting sites represents a significant loss of revenue for the government. It is estimated that billions of reais are lost annually due to these irregular operations.
Furthermore, illegal gambling also has serious social implications. Without proper supervision, players can be exposed to fraud, gambling addiction and even money laundering schemes. The lack of consumer protection mechanisms increases users’ vulnerability to these risks, further exacerbating the problem.
According to data from the Brazilian Association of Gambling Studies (ABEJ), the number of people affected by disorders linked to pathological gambling has grown at an alarming rate. This highlights the urgency of more effective regulation. “The lack of adequate regulation not only harms government revenue, but also exposes citizens to profound social harm,” ABEJ stated in a recent statement.