Government and betting companies are pressuring Google and Apple to publish betting apps to combat the illegal market.

Google and Apple have come under pressure from betting companies and the Ministry of Finance for refusing to publish betting apps in their virtual stores in Brazil, according to a report by Folha de S.Paulo.

The use of certified mobile applications distributed through the official Android (Play Store) and iPhone (Apple Store) app stores could help combat the illegal market and reduce the number of frauds, according to authorities and industry representatives. Google and Apple, however, prohibit the distribution of this type of app on their platforms, citing reputational risk.

Pirated virtual casinos are a major concern for the government and betting companies in the country, following the regulation that came into effect in January. Estimates indicate that about half of the operations take place on unauthorized websites in Brazil. To be legal, they need to pay licensing fees, taxes, and adopt compliance rules.

Google and Apple dominate the mobile operating system market in Brazil, as well as the mobile app store market.

In Google's case, this veto occurs even though the company receives money for advertising illegal gambling websites on YouTube, as reported by Folha. These ads lead to apps on the Play Store that are disguised as children's games or other functionalities, but which actually link to fraudulent websites.

Regarding the advertising of illegal betting, Google told Folha that it updated its publishing policies in September 2024 and that it acts "immediately by suspending the ad and, if necessary, blocking the advertiser's account" if it identifies a violation of these practices.

Regarding the ban on the distribution of betting apps on the Play Store, Google only authorizes the publication of gambling apps related to sports betting involving horse racing and lotteries from Caixa Econômica Federal in the country.

There are other countries, however, where online casinos and sports betting in general are permitted, and regulations in Brazil may be updated in the future. In these countries, distribution occurs with rules such as publishing the app for free and not using the company's payment systems to manage accounts.

Google also points out that the Android system is open and allows phone owners to install external applications or use other app stores. For example, Brazilian betting sites offer apps and instructions on how to install them on mobile phones.

Apple was also contacted, but did not respond to the reporter's questions.

The regulation of the sector is the responsibility of the Prizes and Betting Secretariat of the Ministry of Finance. It is responsible for creating the rules governing the sector, evaluating applications from companies interested in entering the Brazilian market, and monitoring whether authorized companies comply with the regulations.

"The possibility of using applications by duly authorized operating companies can represent a positive tool in combating the illegal market," says the Ministry of Finance in a statement.

"This technical and regulatory position has been shared with app stores, emphasizing the importance of these environments having control and validation mechanisms that guarantee exclusive access to authorized platforms," ​​he added.

The department pointed out that it would also be desirable to have features that allow the deactivation of applications in case of suspension or revocation of authorization to operate.

Heloisa Diniz, director of regulation and public affairs at the Bets and Fantasy Sports Association, states that approximately 75% of online sports bets were placed via mobile phones last year.

“Making regulated apps available in official stores, such as Google Play and the App Store, is a strategic measure: it allows for the prior filtering of licensed operators through the license number or the '.bet.br' domain, reinforces user protection, and directly contributes to weakening the illegal market, which operates without any control,” he assesses.

The Brazilian National Association of Games and Lotteries (ANJL) agrees. The organization's president, Plínio Lemos Jorge, stated that restricting apps "creates an environment conducive to increased use of illegal websites."

“The opposite approach, which would aim to support responsible gambling, is to make the apps of the betting sites authorized by the federal government available in app stores. This would be another way to create a benchmark environment for players who seek to operate legally,” he added.