The Brazilian government has taken decisive action against unregulated online betting by closing more than 2,000 gambling websites, including those linked to major football clubs like Corinthians.
This crackdown is part of a broader initiative to enforce new regulations aimed at curbing fraud, money laundering, and protecting vulnerable users, particularly minors.
President Luiz Inacio Lula da Silva’s administration is responding to what officials describe as a gambling crisis affecting low-income Brazilians, many of whom are accumulating debt due to online gambling activities.
Finance Minister Fernando Haddad highlighted the government’s concern over a “gambling pandemic,” emphasizing the need for strict regulatory measures.
The new regulations, which will be implemented in January, require all betting sites to register and comply with operational guidelines.
Sites that fail to do so will be blocked and barred from advertising or sponsoring sports teams.
While over 2,000 websites have already been taken offline, more than 200 others that have agreed to adhere to the new rules will continue operations.
Since the legalization of sports betting in Brazil in 2018, the industry has experienced rapid growth but remained largely unregulated, leading to concerns about its impact on society.
The central bank estimates that approximately 24 million Brazilians engage in online gambling, which poses significant social challenges.