Latin America Focus
Ultimately the CPI ended in failure after its members rejected the
final report in June. On several occasions, the members of the committee were surprised by the absence of those summoned: six individuals did not appear to testify. In all according to the Senate News Agency the majority of the indictment requests in the report were directed at entrepreneurs and companies in the betting sector. With a total of 21 meetings, the CPI heard 19 individuals, which represented just over 10 per cent of the total depositions approved. Despite the fact that it achieved nothing in regulatory terms some
shocking reports outlining the scope of the problem did emerge during testimony. During his testimony, Lucimério Barros Campos, who led Operation Game Over—which dismantled criminal schemes related to betting and digital influencers—revealed that illegal betting houses hire influencers and permit them to create fake accounts on gambling apps. Tese accounts are then used to simulate winnings, which are promoted to their followers. And it’s not just influencers. More recently stories have surfaced
over the way so called “betting scalpers” mediate bets for illegal online platforms and serve as an alternative for those prohibited from betting through legal channels, such as minors. On Facebook, groups with tens of thousands of members are providing underground betting options all day long according to the BBC. Scalpers lure gamblers in by promising larger prizes than those available from legal bookmakers and offering illegal bonuses. Similarly, on Instagram, several pages with thousands of followers promote these services and, in some instances, they even use names that closely resemble those of legitimate bookmakers.
BLOCKING 7,000+ WEBSITES Tis year, the National Telecommunications Agency (Anatel) has already been asked to block more than 7,000 websites. In May, Carlos Baigorri, the president of Anatel highlighted that the regulatory framework for betting in the country is still in its early development and needs stronger institutional backing. Although recent legislation represents a significant advancement for the industry, Baigorri noted
that the absence of a dedicated regulatory agency creates challenges for effective oversight. He elaborated that due to the fragile regulatory framework, decisions are frequently made through quickly drafted ordinances to address irregularities. When illegal activities are discovered, enforcement responsibilities rest with Anatel. “Te governance model for betting regulation is still, let’s say, very
weakly institutionalised. If you think about the electricity or telecommunications sectors, they have agencies, career civil servants, boards, regulatory impact assessments, and public consultations. Te betting sector doesn’t. It has a department within the Ministry of Finance that makes unilateral decisions through ordinances,” Baigorri said. A recent report released by Instituto Locomotiva and financed by
the Brazilian Institute of Responsible Gaming (IBJR) sheds further light on the scope of the problem. Te study found that three out of four Brazilians who bet online in 2025 used illegal platforms. Additionally, 46 per cent have deposited money on sites that they later discovered to be fake or irregular. Te majority (78%) report difficulties in identifying whether a platform is legal, and 72% admit they do not always check the necessary information to ensure the service’s legality.
LEGAL VACUUM To a large degree the problem lies with the gap between the time when the act was passed and when the bill went into effect. Since 2018, online betting has been legalised in Brazil under Law 13.756/2018, which required regulation within two years, with possible extensions. Te previous government failed to act on this. However, the current administration began regulatory efforts, resulting in Law 14.790/2023 signed by President Luiz Inácio Lula da Silva in December 2023. In a public hearing in May Congressman João Carlos Bacelar, stated
that, even after the regulation of the betting market in Brazil, through Law 14.790/23, complaints continue to emerge about illegal operators operating in Brazil.
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