Brazilian authorities have shut down over 2,000 online betting sites, including those affiliated with popular football teams like Corinthians, as part of a broader effort to regulate the unregulated online gambling sector.

The government, led by Fernando Haddad, the Finance Minister, has recognised the growing concern over the “betting pandemic” in Brazil. Since the legalisation of sports betting sites in 2018, the sector has operated with minimal oversight, leading to concerns about fraud, money laundering, and the protection of users.

The new regulations, which are set to take effect in January 2025, aim to address these issues by combating fraud and money laundering and protecting minors from engaging in gambling activities.

Betting sites that failed to comply with the new regulations have been taken offline. The finance ministry identified 2,040 “suspicious domains” and requested the telecoms regulatory agency Anatel to block them.

Among the affected sites is Esportes da Sorte, which sponsors Corinthians, as well as other prominent football clubs like Athletico Paranaense, Bahia, and Gremio de Porto Alegre. These betting sites will be blocked and prohibited from advertising, including sponsoring football clubs.

Over 200 other betting sites have been granted permission to continue operating after agreeing to comply with the new rules.

Brazil’s central bank estimates that approximately 24 million Brazilians, or one in nine people, engage in online gambling. President Luiz Inacio Lula da Silva has expressed concerns about the negative impact of gambling on low-income individuals, particularly those who may fall into debt due to gambling, prompting the government’s crackdown.