Brazil’s Federal Court of Accounts (TCU) has identified significant weaknesses in the government’s efforts to combat illegal online betting, warning that unlicensed operators continue to capture a substantial share of the country’s gambling market.
The findings were published in Acórdão 1296/2026 following a comprehensive audit of Brazil’s betting oversight framework.
Illegal Market Still Controls Large Share
According to the TCU, illegal operators account for between 41% and 51% of Brazil’s online betting activity, representing as much as R$40 billion in annual unlicensed turnover.
The audit focused primarily on the Secretariat of Prizes and Betting (SPA-MF) within the Ministry of Finance, while also issuing recommendations to agencies including Anatel, the Central Bank, the Federal Revenue Service, and anti-money laundering authorities.
The court concluded that the government has yet to establish a sufficiently coordinated and effective response to the scale of the illegal market.
Regulated Sector Continues to Grow
Despite the challenges, Brazil’s regulated betting industry generated significant economic activity during the first half of 2026.
The legal market produced R$17.4 billion in gross gaming revenue and contributed R$3.8 billion in federal taxes. Authorities allocated approximately R$2.14 billion of those funds to public sectors such as healthcare, sports, social security, and tourism.
The audit also estimated that Brazil’s online betting market now serves 17.7 million users, with average monthly spending of around R$164 per bettor.
Welfare Spending Raises Political Concerns
One of the report’s most notable findings involved beneficiaries of Bolsa Família, Brazil’s federal welfare program.
The TCU reported that recipients transferred approximately R$3 billion to online betting platforms in August 2024 alone, representing 21% of all welfare payments distributed during that month.
The finding has intensified political debate around gambling regulation and consumer protection, particularly among vulnerable groups.
Court Calls for Stronger Enforcement
The audit criticized several aspects of the current regulatory framework, including limited technological capabilities for identifying illegal operators, weak coordination between government agencies, and a sanctions regime that has delivered limited results.
The court specifically highlighted the widespread presence of unlicensed products such as the “Tigrinho” slot game, commonly marketed under names including “Fortune Tiger,” which has become closely associated with Brazil’s illegal gambling market.
To address these shortcomings, the TCU recommended the creation of a permanent interagency coordination structure led by the SPA-MF. It also called for enhanced technology to detect and block illegal websites, stronger enforcement mechanisms developed alongside the Central Bank, and a centralized monitoring system to support anti-corruption and anti-money laundering efforts.
Recommendations Could Shape Future Policy
While the court’s recommendations are not legally binding, the TCU remains Brazil’s highest fiscal oversight body, and its findings often influence government priorities and future budget allocations.
Minister Jorge Oliveira said the audit would contribute to more effective state action against money laundering linked to online betting and virtual gaming activities.
The report is likely to increase pressure on regulators to strengthen enforcement as Brazil continues to expand its regulated betting market while attempting to curb illegal operations.
