The collapse of a Brazilian offshore company: massive blocking of websites and the threat of extradition of Russian-speaking casino operators

The collapse of a Brazilian offshore company: massive blocking of websites and the threat of extradition of Russian-speaking casino operators

According to media reports, very difficult times are coming for gambling market participants from the CIS countries. They recently set up schemes for conducting activities through Brazil and directly on the territory of this country. However, at the moment there has been a sharp turn of events in the online casino and betting market there.

Until recently, Brazil was a real "paradise" for gambling market participants: online games and betting were legalized, operators received licenses without any problems, foreign operators worked hard, etc. Now this experiment has actually been curtailed.

On September 25, the Brazilian authorities adopted measure №1394, which prohibits the operation, offer, intermediation and advertising of rates with fixed coefficients —, and the ban also applies to foreign operators. For some players, the next step could be offshore casinos and bookmaker sites that will try to work with the Brazilian audience outside of national regulation.

Brazilian authorities have already begun blocking illegal sites. After the ban was passed, the state interdepartmental group blocked 506 resources.

The Federal Police is simultaneously investigating schemes related to illegal casinos, money laundering, the withdrawal of funds abroad and the use of shell companies.

Criminal cases are expected against the owners or managers of operators in the near future, after which Brazil will initiate an international search and subsequent extradition.

A significant part of the Russian-language gambling business operating in Brazil settled in Cyprus. But it would be extremely risky to expect that being on the island will automatically protect against Brazilian claims.

Therefore, the current redistribution of the Brazilian gambling market — is not only a story about the loss of licenses and clients. For operators who, after the ban, decide to continue working with Brazil, but through offshore companies, the main question now sounds different: where does the attempt to save the business end and where does the criminal offense begin?