The rise of illegal online gambling platforms in Brazil post-outright online betting ban has now ensued, with an eye-watering amount of unlicensed operators beginning to infiltrate the South American country.
President Lula’s decision to prohibit regulated online gaming and betting operators came as a shock to the industry, putting it mildly.
Just under two years, Brazil’s online licensed market went from non-existence to becoming the sixth-largest in global value, as per Blask data, with potential to top the ranks by the end of the decade.
However, Lula’s drastic measure, introduced a week before the Presidential election, now seems to have reversed years of efforts to establish a safe environment for players.
SBC Noticias Brasil reported that illegal iGaming operators had climbed to 575 on 26 September, as opposed to the 331 recorded the day prior before Lula’s announcement – representing an increase of 244, or 74% in 24 hours.
The stats were shared by Amilton Noble, Executive Director of lottery tech provider Hebara, taken directly from data monitoring platform Bet Legal.
Going further back in the build up of the announcement, the difference becomes even more staggering. For example, Bet Legal puts the number of illegal platforms at 102 on 21 September (Monday). This would mean that they’ve climbed to 331 in four days, and then jumped to 575 by the weekend (Saturday).
“A picture is worth more than a thousand words,” Noble said. “Survey of the Bet Legal website regarding the detection of illegal betting sites.
“Observe the behavior of the curve after the MP (provisional measure). Innocence, bad faith, ignorance of the market? The illegal gang is lying down and rolling. Almost 700 illegal sites in the last 48 hours. I don’t like to say ‘I warned you’. But, I warned you… It will get worse.”
The Presidential election is set for 4 October, with voting intention polls among Brazilians pitting Lula da Silva and Fabio Bolsonaro as the top candidates for the seat.
The Bolsonaro family has been historically in support of sports betting, which means that the betting prohibition could be reversed, if Congress does not shoot down Lula’s provisional measure altogether in the coming weeks – the outcome that the global industry is currently hoping for.