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The need to initiate a national task force to fight illegal betting activities has also been advocated by Hazenclever Lopes Cançado, the head of the Rio de Janeiro State Lottery (Loterj). The author states that this should be a collaboration between the states and the federal government. Models in other sectors, like finance and fuel distribution, have followed this approach.
Cançado makes the point that the increase of unauthorized betting houses has progressed well beyond being a mere regulatory problem and actually constitutes a structural threat. Indeed, according to his views, enforcement actions are not enough to handle a market extending over the borders of different states.
It was important for the official to clarify that the illegal online and real-world betting operations provide a breeding ground for illicit activities.
Coordination Between States and Federal Authorities
In his speech, Cançado made it clear that for the enforcement to bear fruit, there should be continuous institutional coordination. The federal authorities concerned with taxation, supervision of finances, as well as law enforcement should act jointly.
“We need to bring together the states and federal bodies such as the Federal Revenue Service, the Federal Police, Coaf and the Central Bank to create a force to combat illegal betting houses”, Cançado said.
In this regard, he indicated that these institutions collaborate in other sectors to a large extent, and therefore, the betting market should not be left behind, considering the amount it involves and the element of criminality involved.
Cançado continued to emphasize the significance of illegal gambling in terms of its influence on the Brazilian security system. Cançado argued that underground operations are part of organized crime groups.
“The tens of thousands of illegal betting houses operating in Brazil are a gateway to trafficking, militias, drug trafficking, money laundering and several other crimes”, he stated.
These remarks were made during the recording of an EsferaCast, a video podcast produced by Esfera Brasil, where the topics of conversation included regulations, enforcement, and the future of gaming in Brazil.
Illegal Betting as a Structural Criminal Risk
The president of Loterj explained that illegal gambling should not be considered simply a question of protecting consumers. Rather, it was considered a problem because it has consequences for financial transparency and public order as well.
In his analysis, unregulated service providers tend to circumvent money laundering protection and consumer protection mechanisms, thus creating a setting within which criminal groups can transfer money with relative ease and minimal observation. This, according to him, puts extra strain on lawfully charged law enforcement agencies.
Cançado repeated that enforcement, without integrated data-sharing and collaborative operations, will generally appear as piecemeal and respond mainly to reacting to the illegal guys who can easily move around.
Defense of Legalization and Expansion of Regulated Games
In line with the call for tough enforcement, Cançado expressed support for the legalization of gambling operations that are already being carried out secretly. He mentioned the existence of casinos, bingo halls, and certain gambling models as schemes that already exist but with unclear legal definitions.
“We need to bring into the light of day all games that continue to operate in obscurity and clandestinity”, he said.
As stated by Cançado, through legalization and effective regulation, transparency obligations can be imposed, financial flows can be supervised, and responsible gaming practices can be guaranteed.
Videolottery as an Economic Development Tool
The president of Loterj also justified the plans to speed up the expansion of the video lottery terminals in the state of Rio de Janeiro. According to the president of the company, the project the company embarked upon was seen as relevant in the economy of the state in question.
Cançado described how legalized gaming could raise the flow of funds in the state and help industries such as tourism, restaurants, and technology. Moreover, he stated that gaming contributes to a multiplier process because it encompasses various production chains.
In his closing remarks, Cançado reaffirmed that the regulation, enforcement, and development tasks should happen simultaneously. Indeed, according to Cançado, only a coordinated national approach allows a proper decrease in illegal betting while simultaneously improving the legal betting sector.
Source: iGaming Brasil
