Brazil Orders Nationwide Blocking of Three PixBet Platforms

Three Pixbet Soluções Tecnológicas Ltda. betting platforms have been ordered by Brazilian courts to be blocked across the country by the National Telecommunications Agency (Anatel).

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The order, handed down by the Justice of Paraíba, comes after a previous injunction that temporarily banned the company. It includes PixBet, Bet da Sorte and GanheiBet and mandates the platforms to be blocked throughout Brazil.

Court Escalates Measures Against PixBet

Judge João Lucas Souto Gil Messias initially banned PixBet’s betting websites on July 14, noting the lack of measures to prevent minors from registering, using and gambling on the sites. The case was filed by the Padre Ezequiel Ramin Center for the Defense of Human Rights (CEDECA), the Francisco de Assis Association for Education, Citizenship, Inclusion and Human Rights, and Priest Júlio Lancellotti.

After PixBet filed an appeal, that decision was confirmed by the Court of Justice of Paraíba. The company claimed it applied facial biometrics as per the federal legislation and the Secretariat of Prizes and Betting (SPA/MF) regulations.

R$4.7 Million Fine Accumulated

The initial injunction set a R$100,000 daily fine for the platforms to be barred from continuing to run. Judge Messias said that the penalty would amount to about R$4.7 million due to the non-compliance for 47 days, and the court ordered the debt to be paid.

The court also stated that PixBet’s systems should be subject to an independent judicial evaluation and that there should be a nationwide blocking order. The evaluation should evaluate the effectiveness of its biometric and facial recognition tools, platforms and databases, and access controls, including the ability to restrict minors’ access to its platforms.

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Regulatory Issues Also Under Review

The judge also mentioned two precautionary measures taken by the SPA back in August. The measures reportedly included violations of responsible gambling policies and the lack of information submitted to the Betting Management System (Sigap).

The extra dealings put PixBet in the hot seat of both the courts and the regulators. The case highlights the need for age verification and responsible gambling measures in the regulated betting landscape in Brazil, especially given the ongoing monitoring of the operators by the authorities to ensure adherence to the Federal requirements.

Federal Police Investigation Adds Pressure

The proceedings in court are also occurring in the background of another investigation that concerns PixBet. Brazil’s Federal Police is investigating the company to determine whether it committed money laundering, foreign exchange evasion, and other crimes against the National Financial System.

The investigation is part of Operation Arena, which was begun in August. The criminal investigation is in addition to the court proceedings in Paraíba, so the scrutiny by judges, regulators and law enforcement is a big jump for the company.

Now, with the new ruling, Anatel must enforce the ban on PixBet, Bet da Sorte and GanheiBet throughout Brazil. The independent technical examination and continuing regulatory process should result in additional evaluations of the protections that are in place on each platform and the extent to which they meet Brazil’s betting regulations.

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Source: SBC Noticias