Brazil Halts Crackdown on Illegal Betting Sites Due to Budget Cuts
The National Telecommunications Agency (Anatel) has announced it must suspend blocking offshore operators following government-imposed financial constraints.
Anatel’s Efforts to Combat Illegal Betting Sites
Since January 2025, the agency has blocked approximately 15,000 illegal websites, but ongoing operations are currently maintained only through a UNESCO grant of $1.45 million.
Anatel worked closely with the Ministry of Finance’s Secretariat for Prizes and Betting to shut down illicit platforms. However, budget cuts have left the agency without sufficient resources to continue these blocking efforts.
Criticism of Anatel’s Leadership and Staffing Challenges
Anatel’s President, Carlos Baigorri, sharply criticized the lack of an institutional framework in the betting sector and highlighted a significant staff shortage. The agency is missing 141 regulatory specialists, representing 25.8% of its workforce.
He emphasized the need to expand Anatel’s structure and explore new partnerships to strengthen oversight of illegal betting activities.
Staffing Shortages
Anatel expects its annual budget to increase to 23 million reais with the addition of 50 new employees selected through a public recruitment process in 2024. However, official staffing increases require a presidential decree and approval from the Ministry of Management and Innovation in Public Administration.
The Betting and Fantasy Sports Association (ABFS) has sent a letter urging the reinforcement of Anatel’s technical team to tackle illegal sites. The letter recommends appointing the already selected candidates to address the workforce deficit and prevent further deterioration following planned layoffs in 2026.
Lack of an Institutional Governance Model in the Betting Sector
During a presentation in Madrid, Baigorri pointed out key regulatory shortcomings in Brazil’s betting sector:
- No institutionalized governance model for betting;
- Absence of a specialized agency with a career development system and collegial governing bodies;
- Regulation is conducted by unilateral decisions from the Ministry of Finance’s Secretariat without broad public consultation.
Comparison with Other Sectors
Baigorri noted that sectors like energy and telecommunications benefit from fully established agencies staffed by career professionals and governed by transparent regulatory processes. In contrast, the betting sector currently lacks these institutional structures and mechanisms.
Current Situation and Outlook
Budget constraints and staffing shortages are undermining the effectiveness of Brazil’s fight against illegal betting sites. Despite successfully blocking thousands of sites earlier this year, ongoing efforts now rely primarily on international funding.
| Metric | Data |
|---|---|
| Number of Illegal Sites Blocked | Approximately 15,000 (since January 2025) |
| Vacant Regulatory Specialist Positions | 141 (25.8% of workforce) |
| UNESCO Support Amount | $1.45 million (about R$8 million) |
| Anatel’s Expected 2025 Budget | R$23 million (including 50 new staff) |
Conclusion
To effectively combat illegal betting platforms in Brazil, government backing, increased staffing, and the establishment of an institutional governance model are essential. Without these measures, the current efforts’ effectiveness will decline, potentially leading to growth in the number of illegal operators in the market.