Brazilian authorities have blocked more than 60,000 illegal betting websites as the government steps up efforts to restrict unlicensed operators and strengthen the country’s regulated betting market.
Carlos Renato Resende, subsecretary of Monitoring and Inspection at the Ministry of Finance’s Secretariat of Prizes and Betting (SPA), disclosed the figure during a Chamber of Deputies hearing on August 11.
According to Agência Câmara, the government began manually monitoring illegal betting websites in January 2025 before introducing an automated blocking system in October. The shift has allowed authorities to identify and restrict illegal platforms on a much larger scale.
Brazil Expands Illegal Betting Enforcement
Resende acknowledged that completely eliminating illegal betting would remain difficult. He noted that no country has successfully eradicated its illegal market entirely, highlighting the persistent challenge regulators face in controlling offshore and unlicensed operators.
Consequently, Brazil is expanding its enforcement strategy beyond website blocking. The Ministry of Finance is also working with the country’s financial system to introduce additional measures targeting illegal betting operators.
Authorities expect to publish new financial rules by early September. These measures will focus on disrupting the financial operations that allow illegal betting businesses to continue operating.
Government Plans to Freeze Illegal Betting Funds
The proposed measures could also allow authorities to freeze funds linked to illegal betting operators and potentially return money to consumers who have been defrauded.
Under the proposed system, consumers would be able to demonstrate that frozen funds belong to them and request reimbursement. If companies cannot prove the lawful origin of the remaining funds, authorities could ultimately transfer the money to the Brazilian state.
Those funds could then go to the National Public Security Fund.
The approach therefore targets illegal operators from multiple angles. Instead of simply blocking websites, authorities also aim to restrict access to financial infrastructure and prevent illegal businesses from moving or retaining funds.
Regulators Call for Greater Coordination
Wesley Vaz, secretary of External Control for Governance at the Federal Court of Accounts (TCU), called for closer cooperation between government agencies.
The TCU has already issued recommendations addressing illegal betting through Acórdão 1296/26, which it approved in May.
Vaz said the Ministry of Finance, Central Bank, Federal Revenue Service, National Telecommunications Agency (Anatel), and Federal Police should coordinate their efforts against illegal operators.
He highlighted three key priorities: blocking illegal domains, disrupting financial flows, and imposing sanctions on operators that violate the law.
Illegal Betting Market Share Falls
Despite the scale of enforcement, illegal operators continue to represent a significant portion of Brazil’s betting market.
Research from Instituto Locomotiva, presented during the hearing, estimated that illegal betting accounted for between 38% and 41% of the Brazilian market. The estimate represents a decline from the previous range of 41% to 51%.
The research was conducted in May among 2,291 people across Brazil.
Eric Brasil, director at LCA Consultoria, said the findings indicated an estimated 11% reduction in the illegal market. However, he warned that Brazil’s illegal betting sector remains considerably larger than those in several other regulated markets.
Julio Lopes, the deputy coordinating the commission, described the decline as a positive development and said even a relatively small reduction represents progress in the fight against illegal activity.
Licensed Operators Face Stricter Requirements
The hearing also examined the differences between licensed and illegal betting operators.
The Brazilian Institute of Responsible Gaming (IBJR) highlighted several requirements that authorised operators must meet, including traceable payments, facial biometric identification, age verification, tax compliance, anti-money laundering controls, and suspicious transaction reporting.
These measures create a clearer distinction between licensed operators and unregulated platforms. At the same time, they provide authorities with additional tools to monitor betting activity and protect consumers.
Brazil Strengthens Its Fight Against Illegal Betting
Brazil’s latest enforcement figures demonstrate the scale of the country’s effort to reduce illegal betting. Blocking more than 60,000 websites represents a significant step, while planned financial controls could further disrupt the business models of unlicensed operators.
However, the illegal market still accounts for a substantial share of betting activity. Therefore, continued cooperation between financial, telecommunications, law enforcement, and regulatory authorities will remain essential.
As Brazil’s regulated betting market develops, the combination of website blocking, financial controls, consumer protection, and stronger inter-agency coordination could play an increasingly important role in reducing the influence of illegal operators.
