An investigation by Brazillian newspaper, Estadão, found illegal gambling firms advertised on Telegram offering big wins.
Eight illegal fixed-odds betting platforms operating in Brazil have more than one million subscribers on Telegram channels, according to a survey by Estadão.
The investigation by the São Paulo-based newspaper identified channels used to direct consumers to operations that are not authorised by the Secretariat of Prizes and Bets of the Ministry of Finance (SPA/MF) .
The pages promoted by these channels offer sports betting and slot games, and use advertising based on promises of high winnings, bonuses, and messages encouraging gambling. In comparison, authorised operators must follow responsible gambling guidelines and warn that betting is not an investment, as determined by the Ministry of Finance last month .
Luiz Felipe Santoro, president of the Commission on Gaming Law, Betting and Responsible Gaming of the OAB-SP (São Paulo Bar Association), told Estadão the absence of responsible gaming mechanisms may favour access for people with gambling-related disorders.
The Estadão newspaper also found ads with alleged proof of transfers and payments of high-value prizes. However, consumer complaints cited by the newspaper report difficulties in withdrawing funds and requests for new deposits as a condition for releasing the money.
Age verification flaws in illegal platforms
Another problem identified by the survey lies in the age verification mechanisms, which serve to prevent minors from playing on betting platforms.
On authorised platforms, SPA regulations require the implementation of strict Know Your Customer (KYC) mechanisms, such as CPF (Brazilian tax identification number), full name, and date of birth, in addition to verifying the bettor’s identity through facial recognition.
On the clandestine websites uncovered by Estadão, age control was generally limited to a declaration from the user that they were over 18-years-old. In almost all cases, this option was already selected by default, while one of the platforms did not even have an age filter.
Although Estadão did not disclose the names of the illegal platforms, it forwarded the domain names to the Ministry of Finance for analysis.
Government action on tackling illegal market
SPA has already blocked more than 56,000 illegal domains in partnership with the National Telecommunications Agency (Anatel).
Telegram informed Estadão that it maintains routine contact with the Ministry of Finance to address content related to illegal gambling in Brazil.
Following much pressure from the regulated betting sector, the government expanded its fight against the illegal market on several fronts, including large police operations with the participation of the SPA (Special Police for Economic and Social Development) and mechanisms for financial strangulation.
Starting 28 August 28, the financial and payment institutions will also be required to block, within 24 hours of notification from the Spanish Payment Authority, funds held by irregular operators and prevent new transactions directed to these companies.
Recently, the Ministry of Finance also took down 937 digital influencer profiles for irregular advertising of gambling .
Although the regulated betting sector has praised the government’s recent actions, it fears that the new restrictions, about to come into effect , will cause consumers to migrate to the illegal market.
This story was first published on Affiliate Leaders’ sister title in Latin America, SBC Noticias.
