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Brazil: SPA details illegal betting crackdown at Congress piracy hearing

Officials told a Chamber of Deputies committee that more than 60,000 illegal betting sites have been blocked.

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Key Points
SPA says more than 60,000 illegal betting sites have been blocked since automated blocking began in October
New measures will let victims of betting fraud claim back frozen funds, with unclaimed money going to Brazil's National Public Security Fund

Brazil's Secretariat of Prizes and Bets (SPA) told the Chamber of Deputies at a hearing on piracy that it has stepped up its fight against illegal betting. 

Deputy secretary for Monitoring and Enforcement Carlos Renato Resende said blocking began manually in January last year and became automated in October, with more than 60,000 illegal sites blocked so far. 

"Nowhere in the world has an illegal betting market been eliminated," he affirmed. 

Resende added that Brazil's Anti-Faction and Organized Crime Law has introduced further mechanisms to prevent illegal betting sites from being used for money laundering, with new financial sector rules expected by early September.

Resende also announced new measures to freeze illegal operators' funds and compensate fraud victims. 

"When that money is frozen, the affected consumer can come forward and prove part of it is theirs, to be reimbursed. If the company can't prove the money's legal origin, the funds will be forfeited to the Brazilian state and directed to the National Public Security Fund," he said.

It was also mentioned, during the hearing, a new study that shows illegal bets now make up 38%-41% of Brazil's market, down from a previous estimate of 41%-51%. 

IBJR’s President Carlos Lima added that Brazil now has a robust, modern regulatory framework, citing facial recognition checks, anti-money laundering compliance, mandatory local headquarters for licensed operators, self-exclusion tools and exclusive use of traceable payments.

"Protecting the consumer requires balance," he said. "It's necessary to follow the rules in the regulated market and combat those operating outside the law."

Good to know

The Laboratory for Human Rights and New Technologies announced during the hearing that it will launch an educational guide focused on protecting bettors and consumers more broadly

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