Brazil to block hundreds of unlicensed betting sites as government cracks down on gambling industry

The Brazilian government, led by Finance Minister Fernando Haddad, has announced plans to take down hundreds of unlicensed betting websites next week. The National Telecommunications Agency (Anatel) is set to block between 500 and 600 betting operators who failed to file the necessary regulatory requests, with further action being taken to restrict payments and monitor bettors.

In a statement made on Monday, Haddad urged gamblers to withdraw their money from these platforms before the shutdown. “If you have money in a betting site, ask for a refund now,” he warned during an interview with Jornal da CBN.

The government’s action targets betting sites that did not meet the August 20 deadline to apply for regulation under Sigap, Brazil's betting oversight system. Haddad stated that the crackdown is necessary, pointing out the previous administration’s failure to regulate the betting sector. "We had a very bad period when gambling grew without the State intervening to protect society. President Lula ordered us to take action,” he said.

Among the measures being prepared by the government is blocking common payment methods such as credit cards and Bolsa Família cards on these betting platforms. The Finance Ministry is also planning to monitor the tax identification numbers (CPF) of bettors, tracking how much money is being won or lost.

Haddad explained that gamblers with large losses and small wins may be struggling with addiction, while those who win large sums with little betting activity could be involved in money laundering.

The Finance Ministry also intends to impose stricter controls on betting-related advertising, which Haddad described as "out of control." He met with sector representatives on Tuesday to address this issue.

When questioned about possible measures to inform gamblers of their losses, Haddad supported the idea of increasing transparency. He suggested that in certain cases, family members should have access to the information regarding a gambler’s losses.

“In the same way that I could set up my phone to receive this information, I could also register my spouse's phone number. There are people who lose thousands of reais. How can you leave your family without the proper warning?" Haddad said, stressing the importance of family awareness in combating problem gambling.