The rise of illegal online gambling in Brazil has been fueled by the widespread use of Virtual Private Networks (VPNs), particularly those linked to Chinese operators. As authorities block unauthorized gambling sites, hundreds more emerge, making enforcement an ongoing challenge.
According to Anatel’s Superintendent of Inspection, Gesilea Fonseca Teles, operators of illegal gambling platforms consistently create new domains or change company registrations to evade authorities. The difficulty escalates when VPNs encrypt communications and conceal server origins, making effective blocking nearly impossible.
Despite efforts by the Ministry of Finance's Secretariat for Prizes and Betting (SPA), enforcement agencies struggle to curb the illegal industry. Estimates suggest that 40% of Brazil’s online gambling market still operates outside legal frameworks, with China-based platforms playing a dominant role.
Blocking these illegal sites requires cooperation from more than 20,000 broadband and mobile service providers. However, VPN usage complicates enforcement, as legitimate applications could be affected. Experts suggest that targeting payment processing systems may be a more effective approach.
André Gelfi, IBJR President, advocates for restricting unauthorized transactions through PIX and other financial services to choke illegal operators financially.
With international cooperation and tighter regulations on financial transactions, authorities may find a more sustainable solution to combat illegal online gambling in Brazil.
