Brazil blocks more than 60,000 illegal betting sites as illegal market share declines

Brazilian authorities have blocked more than 60,000 illegal betting websites.

The figure was disclosed by Carlos Renato Resende, subsecretary of Monitoring and Inspection at the Ministry of Finance’s Secretariat of Prizes and Betting (SPA), during a hearing of the Chamber of Deputies’ External Commission on Acts of Piracy on August 11.

According to Agência Câmara, the government began manually monitoring illegal betting sites in January 2025 before moving to an automated blocking system in October.

Resende said the scale of the problem meant that eliminating illegal betting entirely would be difficult.

“In no place in the world has an illegal market been eradicated.”

He added that Brazil faces similar challenges in other markets affected by piracy and illegal activity, according to Agência Câmara.

The Ministry of Finance is also working with Brazil’s financial system to introduce additional measures targeting illegal betting operators. New rules are expected to be published by early September, according to information presented at the hearing.

Resende also announced measures aimed at blocking funds belonging to illegal operators and potentially compensating consumers who have been defrauded.

Under the proposed approach, consumers would be able to demonstrate that frozen funds belonged to them and seek reimbursement. Where companies cannot establish the lawful origin of funds, those resources could ultimately be transferred to the Brazilian state and directed to the National Public Security Fund.

The measures form part of a wider government effort to disrupt illegal betting businesses not only through website blocking but also through financial controls.

Wesley Vaz, secretary of External Control for Governance at the Federal Court of Accounts (TCU), called for greater coordination between government agencies.

The TCU has already issued recommendations covering the fight against illegal betting in Acórdão 1296/26, approved in May.

Vaz said the Ministry of Finance, Central Bank, Federal Revenue Service, National Telecommunications Agency (Anatel) and Federal Police should work together to target illegal operators.

“There is a need for the state to better block domains, interrupt financial flows and sanction illegal operators.”

The hearing also heard new estimates suggesting that illegal operators continue to account for a substantial share of Brazil’s betting market.

Research from Instituto Locomotiva, presented at the hearing, estimated that illegal betting accounts for between 38% and 41% of Brazil’s market, down from its previous estimate of 41% to 51%.

Eric Brasil, director at LCA Consultoria, said the figures represented an estimated 11% reduction in the illegal market. However, he warned that Brazil’s illegal sector remains considerably larger than those found in several other regulated markets.

The research was conducted in May among 2,291 people across Brazil.

Julio Lopes, the deputy who is coordinating the commission, said even a relatively small reduction in illegal betting should be regarded as progress.

“Any advance in combating irregularity, smuggling, piracy and tax evasion has to be greatly celebrated.”

Agência Câmara reported that the hearing also examined the differences between licensed and illegal operators. The Brazilian Institute of Responsible Gaming (IBJR) highlighted measures used by authorised operators, including traceable payments, facial biometric identification, age restrictions, tax payments, anti-money laundering controls and reporting of suspicious transactions.