The president of the ANJL has warned that illegal gambling could harm the newly regulated online gambling market.

Brazil.- Plínio Lemos Jorge, president of the Brazilian gaming and lottery industry association ANJL is warning of the worst for the upcoming regulated gambling market in Brazil. He’s warning that newly licensed operators could end up leaving the market if more isn’t done to control illegal gambling.

Brazil’s new regulated gambling market will begin on January 1, although many operators are already active on the grey market. The new gambling regulator, the SPA, has confirmed that it has approved 71 operators for Brazilian online gambling licences.

But despite a spate of blocking orders against illegal site from the telecoms watchdog Anatel, the ANJL warns that more than 2,000 illegal gambling sites are operating in Brazil.

Lemos Jorge told UOL Apostas: “This risk exists that if the illegal market is not effectively tackled, if investors assess that the market scenario is not favourable to the expected returns, those who are already here may well leave the country.”

He went on to warn that unlicensed sites use predatory techniques and represent unfair competition as they don’t pay taxes or respect market regulations on player protection.

Carlos Manuel Baigorri, president of Anatel, has previously commented on the futility of blocking orders, comparing its efforts to “trying to mop up ice”. It recently signed a cooperation agreement with the SPA, but Baigorri has called for Anatel to be given more power to block sites.

Lemos Jorge is of the same opinion: “It will be necessary to give Anatel greater autonomy to block sites,” he said. “This autonomy should come through a specific law. With greater autonomy, the blocking process would be much faster. As soon as an illegal site is detected and Anatel becomes aware of it, the blocking would be carried out, preventing the site from having a long life and causing losses to bettors.”

Alternatively, payment blocking via Brazil’s Pix payment platform may have some success. “It is of utmost importance to combat the payment methods that allow the illegal sites to operate,” Lemos Jorge said. “They must also be part of this fight, since, according to the legislation, any financial institution that agrees to operate transfers to illegal platforms not authorised to operate in Brazil by the federal government will be breaking the law.”