Brazil Faces Legal Battles Over Betting Sites List and Crackdown on Unlicensed Operators

Operators-left-off-SPA-approved-list-initiate-lawsuits-against-the-regulatorBrazil is dealing with a wave of legal action from betting companies following the release of an approved list of operators allowed to continue operating in the country. This list, published by the country’s Department of Prizes and Betting (SPA) in early October, features 96 companies, along with 210 affiliated brands, eligible to operate between October 1 and December 31, 2024. However, several companies excluded from the list have filed lawsuits against the Ministry of Finance, sparking controversy over the approval process.

SPA’s Crackdown on Illegal Betting Sites

The creation of the approved list was prompted by increased pressure from both the industry and the government to regulate the market ahead of Brazil’s licensed gambling market launch, set for January 1, 2025. The government is determined to crack down on illegal betting operators in the meantime. As part of this effort, the National Telecommunications Agency (Anatel) was tasked with blocking 2,040 websites deemed illegal, including prominent names such as Betfred and BoyleSports.

While the approved list allows licensed operators to continue functioning, companies not on the list must cease operations until they obtain federal authorization. This restriction has led to significant backlash from several betting operators, with at least eight lawsuits filed in the federal courts.

Lawsuits from Excluded Operators

One of the prominent lawsuits comes from Zeroumbet, a betting platform owned by lawyer and social media influencer Deolane Bezerra. The company submitted its federal betting license application on August 20, 2024, but was left off the approved list due to an ongoing federal investigation into illegal gambling and money laundering. The investigation, known as ‘Operation Integration,’ is centered on Bezerra, arrested twice in September. However, Zeroumbet’s legal team argues that the investigation should target Bezerra as an individual and not impact the company’s operations. “In this case, the one who would be punished would be Deolane Bezerra and not the company,” the lawsuit contends.

In response to the lawsuit, the SPA maintained that Zeroumbet was excluded to protect public interest and ensure the integrity of bettors, given the ongoing investigation. Zeroumbet is seeking a court ruling to allow the company to resume operations despite the investigation, which could have significant financial and reputational implications for the platform.

State-Level Authorizations and Federal Disputes

Other operators, such as Esportes da Sorte, have taken a different route to stay in the market. Although Esportes da Sorte was also excluded from the SPA’s approved list, the company secured authorization from Rio de Janeiro’s state lottery regulator, Loterj, by acquiring controlling shares in the Loterj-licensed company ST Soft. This allowed the company to continue offering betting services at the state level, despite its exclusion from the federal list.

However, Rio’s stance has drawn criticism from the federal government, challenging the legality of allowing Loterj-accredited betting sites to operate nationwide. The federal government has taken the issue to Brazil’s Supreme Federal Court (STF), arguing that state-level licenses should not bypass federal regulations.

Wider Implications for the Lula Government

The Lula administration is facing significant pressure as it seeks to regulate Brazil’s gambling market. Betting has been legal in Brazil since 2018, but until recently, there was no regulation in place for operators. The government began implementing rules last year with the goal of collecting taxes and ensuring compliance. Despite these efforts, the Ministry of Finance has already faced a series of lawsuits, and more legal challenges are expected as excluded companies continue to contest the SPA’s decisions.

For companies like Sportvip Group International Apostas, the legal battle is seen as crucial to their financial survival. The company recently had its preliminary injunction request denied, but the court is still considering the full case. Sportvip, like many others, argues that being left off the list could result in “incalculable financial and reputational losses.”

The controversy has also been fueled by revelations from a Central Bank report, which indicated that people covered by Brazil’s social welfare program, Bolsa Família, transferred R$3 billion to betting platforms in August alone through the Pix payment system. This discovery has intensified scrutiny of the industry, particularly regarding unregulated platforms operating in the country.

As the lawsuits progress, the Brazilian government’s efforts to regulate the market and safeguard public interest will continue to face challenges from operators pushing for inclusion in the newly regulated space.

Source:

Governo Já Enfrenta Ações Sobre Lista de Bets e Empresa de Deolane Tenta Liberação, jornaldebrasilia.com.br, October 16, 2024.

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French Regulator ANJ Warns About Illegal Gambling Sites

french_regulator_issues_warning_over_illegal_online_casinos_on_facebook_2L’Autorité Nationale des Jeux (ANJ), a gambling regulator from France, works hard to prevent illegal gambling in the country. The regulator recently warned all players about the fraud that is occurring in the industry: various illegal gambling operators use the brands of popular licensed operators to advertise their services on social media platforms, especially Facebook.

Risks for players

That way, even those looking to gamble legally can be tricked into placing illegal bets. Now, the regulator has joined forces with Meta to monitor and resolve the issue.

So far, ANJ has found about 400 illegal websites, which resulted in 137 user accounts on Facebook being blocked. The main operators that were used for illegal operations were Barrière and JOA groups. The profiles of these operators have been created and their brand image was used to attract potential customers to the illegal website. They also created mobile apps that players were led to from Facebook images.

Online casinos aren’t legalized in France. However, some operators are allowed to offer online sports betting and horse racing betting services to French players. Also, land-based casinos that have appropriate licenses are also legal.

According to ANJ, players are at huge risk due to betting on illegal sites. They risk not being paid when they win, as well as various payment frauds and the risk of stealing personal data.

The regulator commented: “If in doubt about the legality of the gambling site on which you are about to bet, consult the list of sites approved by the ANJ. You can also consult the blacklist of sites that have been administratively blocked by the ANJ. We invite anyone who notices the presence of fake advertisements to report them.”

Worth of illegal betting market

In December 2023, ANJ said that the illegal betting market in France was worth up to €1.50 billion (£1.28bn/$1.62bn), which is more than 10% higher than the wagered amount in the country on a yearly basis.

According to research conducted by ANJ, 510 illegal websites are active. About 60% of all traffic comes from 21 of them.

PwC published a study with concerning data: the gross gaming revenue illegal casinos earned is somewhere between €748m and €1.5bn, which is between 5% and 10% of total gambling in France. The record was set in 2022 when it was €12.9 billion.

Source:

“French regulator issues warning over illegal online casinos on Facebook”, igamingbusiness.com, January 31, 2023.

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Oakland A’s Eyeing Two Strip Sites for Las Vegas Move

Following another round of meetings between team officials and Las Vegas business leaders, it’s clear the Oakland Athletics are eyeing two sites on the Strip should the team move to Sin City — the fairgrounds owned by Circus Circus and the Tropicana.

A's Las Vegas
A's Las Vegas
Circus Circus Las Vegas. It’s fairgrounds could be a stadium site for the Oakland A’s. (Image: TheStreet.com)

The Major League Baseball (MLB) club has long-rumored interest in Las Vegas and it originally had a list of 20 potential sites for a new, $1 billion stadium. But that roster, as was widely believed would happen, has been whittled to two. It’s clear that land owned by Wynn Resorts on the Strip is out of the running, as a company spokesperson told the Las Vegas Review-Journal it’s not interested in a ballpark being built on that property.

That leaves the 37-acre fairgrounds and recreational vehicle (RV) park near Circus Circus and the Tropicana, which have also been epicenters of long-running MLB stadium rumors, as the A’s preferred sites.

North Strip, Downtown Operators Support A’s Move

A’s officials were in Las Vegas yesterday meeting with executives from North Strip and downtown casinos. That group is supportive of the team’s efforts to move to Las Vegas, citing benefits such as job creation and increased visits to area casino-hotels.

At issue is the point that Circus Circus owner Phil Ruffin apparently didn’t participate in the meeting, nor did he comment to the press about any talks with the A’s. The last remarks he made on the issue were late last year, indicating he hadn’t recently been in touch with officials from the team. That’s relevant because Circus Circus is considered part of the North Strip.

Conversely, Tropicana is closer to the southern end of the Strip, and Bally’s executives have confirmed recent talks with the A’s. Last year, executives from Gaming and Leisure Properties — the owner of Tropicana’s real estate — said the A’s are interested in that site.

Should the team proceed with moving to Las Vegas and select Tropicana as a stadium site, Gaming and Leisure could sell the land to the franchise while providing compensation to Bally’s.

Other Issues Surrounding A’s Las Vegas Move

While the A’s appear set on the fairgrounds or Tropicana as a stadium site, and the team has approval from MLB to move, speculation remains that the ball club is simply using Las Vegas as leverage to force Oakland policymakers to sign off on a new stadium plan in the Bay Area. That theory isn’t a stretch when considering Oakland already lost the NFL’s Raiders to Las Vegas.

There are other moving parts. MLB Commissioner Rob Manfred agreed to waive the A’s relocation fee. But he and the team want some public financing for a Las Vegas stadium — something voters may be loathe to support.

Waiting on an expansion team could take years and be far more expensive than simply building a stadium for the A’s in Las Vegas. As Circa CEO Derek Stevens told the Review-Journal, an expansion franchise could cost up to $2 billion, and that doesn’t include the price of a new ballpark.

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Traditional Bingo Halls Vs Online Bingo Sites

The original bingo which is played in the traditional bingo halls in different countries in the world whether in America, in Canada or somewhere in United Kingdom which we’ve got accustomed to is the one played by using bingo cards and bingo balls which are usually pulled out of some pouch at random. Drawing out […]