Brazil’s online gambling market could go through a big change if licensed betting companies are not allowed to offer online casino games. That is what the National Association of Games and Lotteries (ANJL), which represents licensed betting operators, says in its technical study. The association believes illegal gambling platforms, which already hold 41% of the market, could control as much as 82% if regulated casino betting gets cut off. The study follows a UOL report that the government plans a provisional measure banning online casino games, leaving only sports betting legal
ANJL points out that illegal gambling websites are already easy for Brazilians to find. Between June and August this year, there were an average of 13.7 new illegal websites popping up everyday. In just one week, from September 11 to 18, the association found 6,409 illegal betting domains that people in Brazil could access. These discoveries are making people worry about what might happen if licensed betting sites can’t offer online casino games anymore.
Why ANJL Says A Casino Ban Would Grow The Illegal Market
According to the ANJL study, banning online casinos from licensed betting companies would just send more gamblers over to the unregulated websites, which are not approved by Brazil’s Ministry of Finance. Right now, the illegal market makes up 41% of all gambling. ANJL predicts that, without casino betting on licensed sites, the illegal share could jump to 82%.
The number of illegal domains the association found shows how big the problem is. During that week in September, ANJL found 6,409 illegal betting domains accessible in Brazil. And from June to August, an average of 13.7 new illegal sites appeared every single day. These illegal sites operate outside Brazil’s legal betting system. The study argues that if licensed operators are restricted, gamblers will just turn to the many illegal websites that remain online.
How 6,409 Illegal Betting Domains Stay Online In Brazil
ANJL also looked into where these illegal gambling sites are hosted and how their online setups work. They found that 55.8% of offshore gambling sites use distribution networks to hide where they are really hosted. And almost all of these illegal sites, around 98.3%, do not even use the .br web address. That means they are not tied to Brazil’s official web network.
Plinio Lemos Jorge, ANJL’s president, said these numbers show that a ban would just make illegal betting sites more appealing and easier for Brazilians to use. He also warned that websites already blocked to protect gamblers and their money could actually become popular if licensed casino betting is taken away. ANJL says more than 25 million people who are registered on legal platforms could be affected. If licensed casino games disappear, these people could be pushed toward illegal gambling sites.
What Brazil Could Lose In Betting Tax Revenue
The ANJL report also warns about the possible hit to Brazil’s finances. They estimate that if casino betting is banned on licensed sites, Brazil could miss out on anywhere from BRL 3.6 billion (about $700.9 million) up to BRL 7.4 billion, about $1.44 billion, in tax revenue a year. The association says this loss comes from the difference between regulated and illegal gambling. Licensed sites work with permission from the government and pay taxes, while illegal ones do not, and they are not supervised by the Ministry of Finance.
Lemos Jorge said Brazil would lose tax revenue while gambling continues on illegal sites outside the regulated system. He also pointed out that this shift could put vulnerable groups at greater risk. Illegal websites usually do not offer the same safety features as legal betting platforms, like financial and mental health protections.
ANJL lists protections such as blocking users who receive government assistance and letting people exclude themselves from gambling. They say these measures are important for controlling access and encouraging responsible betting. In the end, ANJL argues that taking casino betting away from licensed companies would not stop people from gambling, it will just send them to illegal websites, many of which are located outside Brazil and do not pay taxes or provide the player protections that legal sites offer.
