Brazil suspends 14 betting sites over risks to bettors

Brazil's Secretariat of Prizes and Bets (SPA) has ordered the suspension of 14 betting sites.

The platforms were operated by Pixbet, Zeroumbet, Enseada, Select, Nexus and RR Participações. The precautionary measures were issued for immediate compliance, with the SPA finding that the irregularities identified put bettors, government oversight and the formal betting market at risk.

Under the suspension, the sites must stop operations and can only be accessed for withdrawing existing deposited funds. The punishment stands until sanctioning proceedings conclude and the SPA confirms the companies are meeting regulatory requirements; most SPA sanctioning cases end in warnings rather than suspensions.

Pixbet was hit with two separate measures

One found the company failed to implement analytical tools and data classification methodology to monitor bettors at risk of developing gambling problems. The other found it failed to submit information required for SPA monitoring and oversight. 

Pixbet was also targeted last week in the Federal Police's Operação Arena, over suspected involvement in a billion-dollar scheme involving money laundering, tax evasion and currency evasion. 

According to Estadão, Pixbet holds significant political and economic influence in interior Paraíba, where it controls a mayor's office; its owner, businessman Ernildo Junior, is backing at least six candidates for office in Brasília and the state in this year's elections.

The other suspended operators, Zeroumbet, Enseada, Select, Nexus and RR Participações, were penalized for similar failures to submit required monitoring information to the SPA, with RR Participações additionally cited for failing to provide documentation on its real corporate ownership structure, complicating verification of its legal, fiscal, labor, financial and technical qualifications. 

None of the companies have commented so far.