Betnacional's M&A lawyer says the end of regulated betting will hinder new operations to combat illegal gambling.
This Thursday (5), the Civil Police of the Federal District (PCDF) launched Operation Azzardo, against a scheme that moved around R$ 1 billion in bets illegally. The investigation indicates transfers via Pix from bettors to front companies in digital games, and is carrying out the blocking of accounts and financial assets of 64 individuals and 120 legal entities, up to a global limit of R$ 3,483 billion.
The operation mobilizes approximately 200 civil police officers from the PCDF (Federal District Civil Police) and the civil police forces of São Paulo, Goiás, Paraná, Ceará, and Rio Grande do Norte. While 24 search and seizure warrants are being executed in different regions of the Federal District, in the capital of São Paulo, teams are carrying out warrants in areas such as Avenida Brigadeiro Faria Lima.
Operations of this scale, however, could be jeopardized by the end of the regulated betting market in Brazil. This is explained by Bernardo Cavalcanti Freire, a lawyer specializing in the sector and partner at the law firm Bessa, Cardia e Freire.
“The operation resulted from data obtained through partnerships and monitoring systems funded by the regulated market, which once again demonstrates the importance of the regulated industry. What will happen now, with the prohibition of the regulated sector, is that it will be much more difficult to obtain this data, in addition to an unprecedented expansion of the illegal market,” he argues.
The ban on the sector is even seen as fueling increased demand in the illegal market. According to the lawyer, a monitoring mechanism chosen by the Federal Police found 61 clandestine websites.
“Our consideration is whether it is possible to effectively combat the illegal market without a regulated one. Because the clandestine market does not eliminate demand. It continues to exist. Citizens still want to gamble. When you eliminate the regulated alternative, you don't eliminate the citizen. They will gamble in some other way on clandestine platforms,” he points out.
“Without a regulated market, all consumers end up going to clandestine platforms, where there is no control. A minor can easily access them. There are hundreds of clandestine betting sites available on Instagram, and it's even possible to use credit cards, something that was prohibited in the legal market. As long as there is no control and education, this automatic migration will continue,” he concludes.
