Brazil’s latest crackdown on illegal betting operators is about more than freezing assets, it is also about finally clarifying who is responsible for policing the sector.
According to Fabio Macorin, Deputy Secretary of Prizes and Betting (SPA), the decree signed by President Lula da Silva last week closes a regulatory gap that had complicated enforcement efforts against illegal operators.
“Previously, it was unclear whether it was our responsibility or the Central Bank’s responsibility to supervise who was receiving money from illegal betting operators,” Macorin told a local news outlet.
The new framework formally places the SPA at the center of that process, giving the regulator authority to identify illegal operators and coordinate enforcement actions alongside the Central Bank, Federal Revenue Service and Ministry of Justice.
Industry groups including the IBJR and ANJL have welcomed the measures, arguing that illegal operators continue to represent one of the biggest threats to the regulated market.
Macorin said the strategy begins with website blocking but ultimately relies on cutting off the flow of money that allows illegal operators to survive.
"We have robust regulation, but it's clear that a sector that has only recently become regulated can still improve. The idea is that the rules will be refined over the next few years," said Macorin.
On the same day the decree was signed, Finance Ministry officials revealed that more than 50,000 illegal websites linked to roughly 300 companies had already been taken offline.
The regulator is already looking ahead to its next target.
According to Justice Minister Wellington César Lima e Silva, more than 25 million Brazilians are still using unauthorized betting platforms
