The legalization of fixed-odds betting in Brazil marked a major step in formalizing a sector with significant economic potential. In just the first six months of 2025, betting operators generated R$ 3.8 billion (US$690m) in tax revenue.
However, the illegal market remains a major challenge. Without oversight or security standards, these platforms promote money laundering, fraud, and high-risk exposure for bettors, as warned by Instituto Esfera and the United Nations. Combating this issue requires global cooperation — through swift licensing, effective financial supervision, and strong Responsible Gambling policies.
In Brazil, the sector is still consolidating: out of 300 authorization requests, 182 brands have been approved. Even so, the illegal market continues to grow — 11,555 clandestine sites were blocked between October 2024 and February 2025.
Surveys show that 69% of young people aged 18–29 have bet on illegal platforms; 78% cannot identify regulated sites; 72% cannot verify their legitimacy; and 77% say they bet only on irregular platforms — data that highlight the urgency of strengthening regulation and enforcement.
The illegal market, which accounts for 41%–51% of the sector, already surpasses part of the legal market (R$ 38 billion / US$6.9bn), causing fiscal losses between R$ 7.2 billion (US$1.3bn) and R$ 10.8 billion (US$1.9bn) per year, based on an average 27% tax rate on GGR.
Despite actions by Anatel and restrictions on financial transactions, illegal operators continue to migrate users to new betting mechanisms. The advance of these illicit operations results in multi-billion-real losses to the State, unfair competition, and erosion of regulatory credibility. Regulation, on the other hand, aims to protect players, prevent money laundering, ensure sports integrity, and generate sustainable public revenue.
International lessons
In China, despite a total ban, the country still accounts for more than half of the global illegal betting market.
The United Kingdom, Malta, and Sweden have adopted open and effective regulatory models. The UK consolidated its Gambling Commission under the Gambling Act 2005, and since 2014, has applied a “point of consumption” regime, requiring a local license and compliance with the Licence Conditions and Codes of Practice, which establish standards of suitability, governance, and technical control.
The UK model mandates specific licenses for “gambling software” (remote and non-remote) and “remote gambling equipment” (B2B), imposing strict due diligence, data segregation and audit requirements, and cooperation with the Gambling Commission. It also includes strong player-protection measures such as credit-card bans, age and identity verification, Gamstop enrollment, deposit limits, and loss disclosure requirements.
In Sweden, the regulator Spelinspektionen strengthened the B2B framework in 2023 by introducing software supplier licenses. It also maintains a public whitelist of legal domains, geoblocking, ad bans for unlicensed operators, and a self-exclusion register (Spelpaus).
In Malta, the Gaming Act of 2018 consolidated two license types: the Gaming Service Licence (B2C) and the Critical Gaming Supply Licence (B2B). The model sets technical, cybersecurity, and business-continuity standards, requires independent testing, and empowers the Malta Gaming Authority to apply proportional enforcement measures (warnings, fines, suspensions).
These experiences demonstrate that balanced regulation — combining competitive licensing, supplier accountability, and strong Responsible Gambling policies — reduces the illegal market, strengthens consumer trust, and increases public revenue.
The Brazilian framework
Brazil’s regulatory foundation began with Law 13.756/2018 and was consolidated by Law 14.790/2023, which structured the sector. Ordinance SPA/MF 827/2024 detailed the authorization process. However, the main challenge remains tackling illegal operators.
The Finance Ministry has intensified its regulatory agenda through Ordinance SPA/MF 817/2025, which established a schedule through 2026 and organized regulation around three pillars: Responsible Gambling, transparency, and national supervision.
In 2025, new actions further tightened the fight against the illegal market: Ordinance SPA/MF 566/2025 prohibited financial institutions from operating with illegal companies; Bill 2.889/2025 proposed a National Betting Registry; and Bill 4.044/2025 established the Legal Framework to Combat the Illegal Market, strengthening financial, criminal, and administrative sanctions.
Letícia Ferraz
Project and Operations Director at LabSul, postgraduate in Law from PUCRS.
Vivian Graminho
Research Coordinator in Digital Law at LabSul, PhD in Law from UFRGS.
