In December 2025, Brazil advanced its efforts to curb illegal gambling after the Chamber of Deputies’ Communications Committee approved Bill No. 4044/2025. The move places the fight against clandestine betting back at the center of the legislative agenda and signals a shift toward a tougher, more coordinated enforcement model.
Introduced by Congressman Delegado Paulo Bilynskyj (PL-SP), the bill proposes a set of financial, technical, and legal measures designed to restrict unauthorized betting operators. At the same time, it aims to reinforce Brazil’s regulated market under the supervision of the Secretariat of Prizes and Bets (SPA), giving licensed operators a safer and more predictable operating environment.
Notably, the proposal does not increase compliance requirements for licensed companies. Instead, it draws a clear line between legal and illegal activity by redefining enforcement boundaries.
Clear Definition of Illegal Betting Operators
Under the approved text, an “unauthorized operator” refers to any individual or legal entity that offers betting services without prior approval from the Ministry of Finance. This definition forms the foundation for broader enforcement action.
Beyond targeting operators themselves, the bill allows authorities to penalize parties that promote or facilitate illegal betting. These include intermediaries, marketing agents, payment facilitators, and other service providers that support or amplify unlicensed platforms. As a result, lawmakers aim to dismantle the wider ecosystem that sustains illegal betting activity.
Financial Controls as a Core Enforcement Tool
Financial oversight sits at the heart of Bill 4044/2025. Banks, fintech firms, card issuers, sub-acquirers, and payment service providers would need to implement systems capable of identifying transactions linked to illegal betting operations.
In addition, these institutions must submit monthly reports detailing preventive measures, blocked transactions, and risk-mitigation criteria, while respecting data protection and banking secrecy rules. Failure to comply could trigger fines of up to BRL 20 million, alongside potential temporary suspensions of payment services.
The bill also places special emphasis on PIX, Brazil’s instant payment system. Under the proposal, the Central Bank would establish rules to prevent illegal operators from using PIX. These measures may include flagging suspicious keys, applying CNAE-based risk filters, and monitoring transactions linked to official watch lists.
Digital Enforcement and Website Blocking
The proposed framework also strengthens digital enforcement. Internet service providers and telecom operators would be required to block domains identified by authorities. Enforcement tools could include IP blocking, DNS disruption, mirror-site takedowns, and restrictions on VPN-based access.
Meanwhile, licensed operators would need to deploy geolocation tools to prevent access from jurisdictions where betting remains unauthorized. Together, these measures would create a clear operational divide between compliant businesses and those operating outside the law.
The bill further extends liability to indirect service providers, such as marketing agencies, software developers, legal advisors, and digital influencers, if they knowingly support illegal betting operations. Only services strictly necessary for obtaining an official license would remain exempt.
Why Lawmakers See the Framework as Urgent
Since Brazil first regulated online betting, the market has expanded rapidly. However, this growth has also fueled a surge in illegal platforms, many operating from jurisdictions with limited legal cooperation.
These sites often offer aggressive bonuses, evade taxes, and lack safeguards against fraud and money laundering, exposing consumers to significant risk. Lawmakers argue that without a stronger legal framework, illegal operators could undermine the regulated market and weaken consumer protection.
Expected Impact and Next Steps
If enacted, the new framework could make illegal betting operations financially unsustainable, reducing their presence while strengthening the licensed market. In turn, this may enhance consumer protection and improve cooperation among regulators, financial institutions, and operators.
Before becoming law, the bill must still pass additional committees, including Finance and Constitution and Justice, before reaching the Chamber’s plenary and the Senate. Looking ahead, the key challenge will lie in ensuring that authorities have the technical and operational capacity to enforce the rules effectively, while preserving a competitive and attractive regulated market.
