As reported by VChK-OGPU and Rucriminal.info, extremely difficult times lie ahead for gambling market participants from CIS countries. Recently, these operators had established business models involving Brazil—both operating from abroad and directly within the country. However, the Brazilian online casino and betting market has now undergone a drastic shift.
Until recently, Brazil was a veritable "paradise" for the gambling industry: online gaming and betting were legalized, operators obtained licenses without difficulty, and foreign companies operated freely. Now, however, this experiment has effectively been shut down.
On September 25, Brazilian authorities adopted Measure No. 1394, banning the operation, offering, brokering, and advertising of fixed-odds betting—a ban that extends to foreign operators as well. For some players, the next step may be turning to offshore casinos and betting sites that attempt to serve the Brazilian audience outside the scope of national regulation.
Brazilian authorities have already begun blocking illegal sites; following the ban's adoption, a government interagency task force blocked 506 such resources.
Concurrently, the Federal Police are investigating schemes involving illegal casinos, money laundering, the transfer of funds abroad, and the use of shell companies.
Criminal cases against the owners or executives of these operators are expected soon, after which Brazil will initiate international wanted notices and subsequent extradition proceedings.
A significant portion of the Russian-speaking gambling business that operated in Brazil has relocated to Cyprus. However, assuming that being based on the island offers automatic protection against claims from Brazil would be extremely risky. Therefore, the current shake-up of the Brazilian gambling market is a story about more than just the loss of licenses and customers. For operators who decide to continue serving Brazil via offshore entities after the ban, the key question has shifted: where does the attempt to preserve the business end and a criminal offense begin?
