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The Ministry of Finance of Brazil has increased pressure on those who organize and conduct illegal online betting by issuing notifications to 37 fintechs whose services were used by unauthorized gambling platforms. It is a component of a broader enforcement strategy that is carried out by SPA along with the Federal Revenue Service.
According to the government of Brazil, the identified financial institutions process financial transactions for around 160 gambling websites that do not operate legally. Simultaneously, authorities noted that 54,000 websites associated with illegal platforms have been shut down as part of a general strategy of strengthening the regulated betting market.
Deadline for Fintechs to Comply
Those institutions that were notified will have to stop conducting any financial operations with unauthorized betting platforms by the end of August. During this period, they will have to adapt their working procedures in order to ensure compliance with the new requirements of the government.
Failure to comply with them and to stop working with unauthorized gambling platforms after the given deadline may lead to joint responsibility for breaking the regulations. Besides, fines which would be proportional to the total volume of processed transactions could be imposed. Also, there is a possibility of freezing financial assets and initiating administrative procedures related to non-compliance.
This measure aims at disrupting the financial infrastructure of illegal betting operators, which makes their operation harder in the country.
Strategy of Enforcement is Continued
The actions against fintechs are part of a bigger strategy aimed at removing illegal betting platforms from the internet. The Ministry of Finance of Brazil has blocked around 54,000 gambling websites thanks to the help provided by Anatel, National Telecommunications Agency of Brazil.
As per estimations of authorities, between 41% and 51% of those gambling websites which are visited by Brazilian users operate illegally. It means that authorities are now able to detect financial transactions which are conducted by those illegal platforms better due to better coordination of efforts between regulatory and enforcement agencies.
New measures are a reflection of the strategy of the government to block websites, control finances, and enforce regulation in order to minimize the number of illegal operators and to encourage players to use licensed platforms.
Identifying Authorized Gambling Platforms
In accordance with the current regulatory regime in Brazil, only those gambling platforms which have received licenses from the Ministry of Finance can provide betting services legally.
It means that licensed gambling platforms should have a legal presence in Brazil, adhere to the requirements concerning responsible gambling, pay appropriate fees for a license, and use “.bet” domain name which is specified under the regulatory framework of the country.
Unauthorized gambling platforms, however, do not meet all the regulatory requirements and remain subject to financial restrictions, blocking of their websites, and other possible sanctions. As Brazil is creating its regulated betting market, authorities try to encourage players to make sure that a platform is authorized before placing a bet on it.
Source: iGaming Brasil
