According to ANJL, the conflict over alert messages displayed by financial institutions is driving the growth of illegal sites, putting the security of players at risk and affecting the country's tax revenues.
A growing dispute between banks and legalized online betting houses in Brazil is causing an undesirable effect: the displacement of gamblers to the illegal market. According to representatives of the sector, the alert messages sent by financial institutions to users of authorized platforms, which in some cases include the blocking of passwords or cards, make legitimate transactions difficult and lead players to opt for clandestine sites, where they have no restrictions or security guarantees.
Banks should not ban gambling in Brazil, it is not your job ...
"When the bank sends that alert, it often also blocks the password, the card or the operation of the player who wants to bet. It does not let him place the bet. What does he do then?“They look for an alternative and end up playing in illegal houses, where the commitment to security is zero,” explained Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL) about the situation.
Currently, 72 betting houses are authorized to operate in the country, but the obstacles imposed by financial entities persist. Lemos Jorge pointed out that banks are unable to identify illegal platforms in their databases, which leads to warnings and blockages being concentrated on regulated platforms.
The president of the ANJL has already reported the problem to the Central Bank and to the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance, the entity in charge of regulating the sector. “They told us that they will observe this movement more closely and suggested that we talk to the associations to show that these alerts are harming us. It could be a lack of knowledge on the part of the banks,” he added.
Unfair competition and losses for the public treasury Last week, the Ministry of Finance received a list of companies operating outside the law, without having acquired the required authorization or complying with regulations.
These clandestine sites, many based abroad, collect around R$ 1,000m a month without paying taxes, according to the report. The lack of effective control has generated criticism about compliance with the regulation.
“This control was one of the bases of the regulated market, but it is not being complied with.If there is a rule, it must be respected.If it is not done and nothing happens, a competitive disadvantage is created.It is unfair competition,” said André Gelfi, president of the Brazilian Institute for Responsible Gaming (IBJR).
This situation affects legal companies, which do pay taxes and comply with government requirements. Until the conflict between banks and authorised platforms is resolved, the sector warns of the risk of further growth of the illegal market, which compromises both the security of players and tax revenues. The solution, according to representatives, lies in greater dialogue between the parties and better identification of operations by fin
