Brazil’s government said BRL1.325bn (US$266m) remained to be returned to 26.5m customers following the closure of the country’s regulated online betting market, as the first reported redundancies spread across operators and suppliers.
Banks will return outstanding balances between 9th and 14th October. Unsuccessful transfers will pass to state-owned Caixa Econômica Federal for repayment.
The Ministry of Justice said 187 of the 188 previously authorised betting websites were unavailable on 6th October. Authorities requested the blocking of the remaining site.
Accounts containing unusually high balances will be examined for possible money laundering and links to organised crime. The government said many customers held only small amounts, with 86.2m accounts containing between BRL0.01 and BRL0.99. Individual customers can hold accounts with several operators.
Brazilian authorities submitted 13,241 illegal betting domains for blocking between 25th September and 6th October, equivalent to an average of 1,103 sites per day.
Removal requests were also issued for 3,552 pages, profiles, channels, groups and servers across Facebook, Instagram, Telegram, TikTok, WhatsApp and Discord. The accounts identified outside Facebook and Instagram had a combined reported audience of approximately 17.2m, although individuals may have followed more than one account.
At least 36 formerly authorised betting brands had begun reducing their workforces by 5th October, according to a survey by the Association of Women in the Gaming Industry obtained by Folha de S.Paulo. The figure has not been independently audited and does not include the wider supplier market.
H2Bet dismissed more than 170 of its 270 employees. Diego Breda de Carvalho, the operator’s chief operating officer, wrote on Instagram: “More than 170 people were told they had lost their jobs simply because Lula decided their work would no longer exist.”
Rivalo reportedly released almost its entire workforce of approximately 100 people, while around 70 Rei do Pitaco employees were affected through dismissals and collective leave. Smaller technology and service providers have also reported suspended operations and cancelled contracts.
The Supreme Court challenge brought by industry associations remained pending on 7th October. Justice Luiz Fux had not ruled on their request to suspend the prohibition while its constitutionality is considered.
TAGS: Brazil, Brazil gambling, online betting, sports betting, gambling regulation, betting ban, illegal gambling, H2Bet, Rei do Pitaco, Luiz Fux
