The government expanded measures against illegal betting sites by publishing a decree that mandates the preventive blocking of accounts and funds of unlicensed sites.
The measure, published on the 19th in the Diário da União, will allow blocking to occur within 24 hours.
During the announcement, the Minister of Justice and Public Security, Wellington César Lima, stated that 25.2 million Brazilians place bets on illegal betting sites.
Thus, the decree represents a significant step toward combating irregular operators and increasing consumer protection.
Irregularities will be referred to the National Secretariat of Public Security
As indicated, the decree regulates Article 21-A of the Bets Law and sets out the entire operational process for halting companies that operate irregularly.
In this way, the Secretariat of Prizes and Bets (SPA) will conduct its own investigations into illegal betting sites, as well as receive complaints and analyze evidence of fraud.
The SPA is also responsible for drawing up a report with evidence of irregular operation.
Next, a notification is sent to banks and financial institutions, including the Central Bank, which must oversee compliance with the measure.
In addition to having the account blocked, illegal betting sites will be prevented from carrying out any financial transactions, including new transactions such as payment of prizes.
After the notification reaches the account holder in question, the case will proceed to the National Secretariat of Public Security.
If the irregularities are confirmed, the accused may lose the financial funds, with the seized money being allocated to the National Public Security Fund.
The signing of the decree was announced on the social media channels of the government and President Luiz Inácio Lula da Silva.
Reaction in the gaming industry
The measure against illegal betting sites set out in the decree was supported by gaming industry entities.
In a statement, the newly appointed president of the Brazilian Institute of Responsible Gaming (IBJR), Carlos Lima, congratulated the government on the initiative that promotes integrity in the sector.
Lima emphasized that it “directly contributes to increasing bettor security and protecting operators that comply with the legislation.”
The IBJR president also pointed out that the consolidation of the regulated market should also include combating clandestine operations.
As cited by Lima, using data from the Instituto Locomotiva survey with LCA Consultoria, illegal betting sites “generate R$40 billion annually” and “cause losses of R$10.8 billion per year to public coffers.”
The president of the National Association of Games and Lotteries (ANJL), Plínio Lemos Jorge, also supported the decree announced by the government, emphasizing that the initiative will protect consumers and companies in the sector.
“The progress we are seeing is the result of an environment of dialogue and institutional cooperation that has made it possible to gather information, develop tools, and expand our understanding of the activities of illegal operators in the country,” said Lemos Jorge.