The recent police operations that resulted in the arrest of dozens of people, including artists such as MC Ryan SP, on suspicion of money laundering do not raise eyebrows among the National Association of Games and Lotteries (ANJL).
According to the entity’s president, Plínio Lemos Jorge, illegal bets already represent between 40% and 50% of the entire operation in the country.
To get an idea of the size of this financial hole, duly accredited companies recorded a gross income of R$37 billion last year, which indicates that the clandestine sector generates figures starting at R$29.6 billion in a way that is completely invisible to the government.
Why illegal betting finances organized crime in Brazil
In the association’s view, any platform that operates without federal authorization should already be treated as suspected of being part of organized crime.
This is due to the enormous ease that these sites have in scamming customers, fraudulently changing quotes and allowing access to minors.
To try to contain this advance, the regulated sector focuses on blocking illegal pages (it took down 30,000 sites last year and another 8,000 this year) and is now working to suspend around 300 irregular payment methods.
On the other hand, within legalized sportsbooks, the process is very different.
Money laundering prevention rules require, for example, facial recognition technologies and constant monitoring of the player’s profile, passing on any suspicious financial transactions directly to the Financial Activities Control Council (Coaf).
In addition to the focus on technology, ANJL is also investing in an education partnership with the Ministry of Sports to teach young people that passing on privileged information about football matches is also a serious crime of manipulation.
The financial difficulties of regulated companies
Despite the billions of reais reported in the news, the operational reality of regularized platforms is extremely difficult.
Regarding money laundering investigations involving associated companies, such as Esportes da Sorte, the entity argues that the role of analyzing and suspending federal licenses is exclusive to the Secretariat of Prizes and Bets (SPA), guaranteeing the expulsion of the brand if conviction occurs.
Plínio Lemos Jorge warns that operators have already reached their maximum limit for taxes and advertising restrictions. He argues, in short, that increasing these charges now would only drive customers away into the underground market.
With the current 13% taxation on gross income, added to the normal taxes of any company, the profit margin has plummeted.
The executive warns that the public will soon feel this commercial crisis with the reduction of large sponsorships in football, and directly summarizes the sector’s reality shock: “People thought it was about turning on the switch and making money. But it’s difficult, it’s not easy.”