Three days before the ban on betting companies that did not request authorization to operate in Brazilthe government still does not know the extent of the measure. The existence of fraudulent websites that constantly change addresses and the use of different brands by the same company make it difficult to count how many electronic betting companies operate in Brazil.
This was confirmed by the Secretary of Prizes and Bets at the Ministry of Finance, Regis Dudena. According to him, the government will only know clearly the number of online betting companies after the regulation, which will come into force in January. This is because, after this date, only companies approved by the Ministry of Finance will be able to operate in the country, each one being able to operate up to three brands.
“There are several difficulties in doing the count. One is the difference between companies and brands, as a company can operate more than one brand. There is a second thing, which is a company that uses betting for fraud. She opens a domain, starts providing that fraudulent service and migrates. So, eventually, the same group leaves traces of dozens, hundreds of websites used for mere fraud or criminal activities”, explains the Prizes and Betting Secretary.
According to Dudena, it is difficult for the government, at this moment, to be clear about what are companies and embezzlers who take advantage of betting to commit fraud. “In our database here, we have a few hundred sites that we located. Now, be sure if these are a few groups that operate many [sites]we are not 100% clear about this. What is up to us? Take down these sites if they are not legal, regardless of whether they are from the same group or not”, he explains.
The count of the number of online betting companies operating in Brazil is also reflected in the private sector. In April this year, the data analysis platform Datahub estimated that 217 bets operated in the country, an increase of 735% compared to the 26 companies existing in 2021. In June, the non-governmental organization Instituto Jogo Legal estimated at 2 thousand the total number of sports betting and virtual casino sites in the Brazilian market.
Expectations
With the difficulty in accounting for companies operating in the country, the government can only make estimates based on the regulatory process. According to the most recent statistics from the Prizes and Betting Secretariat, 118 companies made 123 requests until this week. In the last month alone, the agency reported, several companies withdrew and others remade the orders, returning to the end of the analysis queue, but the secretariat did not provide the quantities.
Secretary Regis Dudena predicts that not all requests will be approved, but estimates that around 100 companies will operate legally in Brazil from January onwards, based on comparisons with other countries. “In consolidated betting markets, it is very rare to find a market with more than 100 authorized companies. We have a very significant number of companies that came to ask. We are already clear that many or some of these will not pass all screenings. We are evaluating, we are holding control meetings, and we can identify some companies that do not meet the requirements”, he declares.
According to Dudena, the government is being very rigorous in analyzing the processes. “We raised the bar a lot to regulate. This number shows that there are many companies that have decided to comply with the law. Considering that each of these authorizations can generate up to three brands, we have a very significant number for the website market in operation [a partir de janeiro]”, it says.
Articulation
In addition to the Treasury Prizes and Betting Secretariat, which issued ten regulatory ordinances and analyzes companies’ requests, the Law 14,790/2023which legalized electronic betting, predicts that the Ministry of Sports will also regulate betting, through the National Sports Betting Secretariat. Dudena says that the two bodies will act in a coordinated manner and denied overlapping actions.
“What the law provides is that the regulation and authorization process for bets is the responsibility of the Ministry of Finance. The Ministry of Sports is responsible for the sporting dimension of the activity, mainly to indicate the sports that can be subject to betting and prevent the manipulation of results”, he explains.
Dudena highlights that the Ministry of Finance operates on several fronts and works in conjunction with the Ministry of Justice to combat crime in the betting sector through the Federal Police and preserve consumer rights through the National Consumer Secretariat (Senacon). The Secretariat of Prizes and Bets, informs the secretary, also works together with the National Telecommunications Agency (Anatel) to activate internet providers to take down fraudulent websites.
Finally, the Treasury works together with the Ministry of Health to collect information that improves regulation in order to preserve the bettor’s mental health. According to Dudena, the Prizes and Bets Secretariat provides the Ministry of Health and the Unified Health System (SUS) with information relevant to mental health policy. Next week, the two folders should create an interministerial group on the topic.
