TLDR
- Brazil has blocked more than 60,000 illegal betting websites since automated enforcement began in October
- Illegal betting still makes up 38% to 41% of Brazil’s betting market, down from an earlier estimate
- The government is working with the financial system to freeze funds tied to illegal operators
- Brazil’s Federal Court of Accounts called for joint action between the Ministry of Finance, Central Bank, and other agencies
- Licensed operators must follow rules like biometric checks, traceable payments, and age limits
Brazil’s Ministry of Finance says it will keep targeting illegal betting operators. The goal is to strengthen the country’s regulated betting market.
The Secretariat of Prizes and Betting shared new enforcement steps on August 11. The update came during a hearing at the Chamber of Deputies’ Piracy Acts committee.
Fixed odds betting has been legal in Brazil since 2018. A 2023 law added more tools for state oversight of the industry.
Officials started with manual checks before moving to automated blocking in October. Over 60,000 illegal betting websites have been blocked so far.
Carlos Renato Resende, an undersecretary at the SPA/MF, said no country has fully wiped out illegal betting. He said Brazil faces similar problems in other markets hit by piracy.
Financial Controls Tighten
Authorities are working with Brazil’s financial system to stop money laundering tied to illegal betting. A law on organized crime set up steps for handling these risks.
New financial rules are expected soon. Officials also plan to freeze funds linked to illegal betting companies.
Resende said frozen funds could go toward repaying fraud victims. People who prove ownership of part of the money could be compensated.
If a company cannot prove the funds are legal, the money goes to the state. It would then fund Brazil’s National Public Security Fund.
The plan follows a May decision from the Federal Court of Accounts. Wesley Vaz, a court secretary, called for joint action from several government bodies, including the Central Bank and Federal Police.
A study by Instituto Locomotiva found illegal betting makes up 38% to 41% of Brazil’s betting market. That is down from an earlier estimate of 41% to 51%.
Eric Brasil of LCA Consultoria said the data points to an 11% drop in the illegal market. He said Brazil’s illegal market is still large compared with other countries.
The survey polled 2,291 people in May. Ireland had the lowest illegal share at 3%, while Australia stood at 15% and Mexico at 20%.
Rules for Licensed Operators
The Brazilian Institute of Responsible Gaming said licensed operators must follow strict rules. These include traceable payments, facial biometric checks, and age limits, since no bets are allowed from anyone under 18.
Letícia Ferraz of the Laboratory of Human Rights and New Technologies linked uncontrolled betting to debt and mental health problems. Her lab plans to release a guide to help protect bettors and consumers.
As of the August 11 hearing, Brazil’s plan combines domain blocking, financial rules, and consumer protection steps. Officials say the illegal market is shrinking but still holds a large part of the country’s betting activity.
