As part of an effort to control internet gambling, Brazil started shutting down more than 2,000 betting websites on Friday. These included sites that sponsored well-known football team Corinthians and other first division teams.
The largest economy in Latin America is experiencing difficulties due to what Finance Minister Fernando Haddad has referred to as a “pandemic” of betting, leading the government to impose stricter regulations on the industry.
Online gambling has functioned in a regulatory free-for-all, subject to essentially no controls or taxes, since Brazil approved sports betting sites in 2018.
While sports betting is offered by some of the most well-known websites, Brazilians have also developed an addiction to online casino games like Fortune Tiger and Aviator, which let users wager on the path of a virtual aircraft.
The administration of President Luiz Inacio Lula da Silva has given venues that did not sign up for new laws that were set to go into force in January an extension.
The new regulations, which forbid minors from betting, aim to protect users and fight fraud and money laundering.
According to the finance ministry, 2,040 “suspicious domains” have been found, and it has requested that the telecoms regulator Anatel prohibit them.
Esportes da Sorte, the organization that supports Athletico Paranaense, Bahia, and Gremio de Porto Alegre, along with Corinthians, one of the most well-known football teams in Brazil, is included on the blacklist.
The government declared that the betting sites would not be allowed to advertise, including by sponsoring football teams, and that they would be stopped.
The continuation of more than 200 more sites will be permitted after agreeing to new rules.
