SÁB 13 DE DICIEMBRE DE 2025 - 11:12hs.
Letícia Ferraz, Director of Research and Operations at LabSul

'Bets': The problem is not the lack of laws, but those who operate outside them

Letícia Ferraz, Director of LabSul, argues that the biggest challenge for fixed-odds betting in Brazil is not the absence of regulation, but the actions of illegal operators. This parallel market eliminates protections and increases risks for bettors. Letícia emphasizes that only authorized operators comply with transparency and responsibility standards. Therefore, she advocates for stricter oversight to ensure a safe and regulated environment.

Brazil already has a consolidated regulatory framework for fixed-odds betting — particularly with Laws No. 13,756/2018 and 14,790/2023 — which establish authorization requirements, oversight mechanisms, and consumer protection tools.

This regulatory framework recognizes bettor vulnerability and imposes clear obligations on operators. However, solid rules only take effect when accompanied by active enforcement and measures aimed at suppressing the illegal market, which erodes the protections intended by law.

The legislation conditions market participation on personal and non-transferable authorizations from the Ministry of Finance, ongoing proof of suitability, and compliance with AML/CFT rules.

The Secretariat of Prizes and Betting (SPA) outlines governance obligations: internal policies, controls, audits, and ombudsman channels, as well as monitoring beginning at account registration. SPA/MF Ordinance No. 1,231/2024 translates these principles into practical responsible gaming measures — risk information, self-control tools (betting and deposit limits, time alerts, breaks, self-exclusion), self-assessment questionnaires, and referral for support.

Specific protections target highly vulnerable groups, such as minors — prevented from betting through age verification tools, facial recognition, and data integration — and individuals in socioeconomic vulnerability or with a history of problem gambling, who are monitored through pattern-detection systems, preventive interventions, and account blocking in diagnosed cases.

Advertising regulation, reinforced by CONAR’s self-regulatory framework, restricts persuasive approaches, protects minors, and mandates risk warnings. All these elements show that the sector is not a “lawless territory”; there is an extensive regulatory framework combining economic freedom with social responsibility.

The critical issue, however, remains the illegal market. Estimates indicate that more than half of the sector operates outside the law, creating significant fiscal impact and social risks. Illegal operators do not enforce age controls, do not offer self-control mechanisms, evade oversight, and rely on payment channels and hosting structures outside the jurisdiction.

Thus, the practical difference between legality and illegality is clear: only authorized operators are subject to protection obligations. Therefore, in addition to strengthening oversight of licensed companies — ensuring they implement and effectively disclose the mandated tools — it is urgent to intensify actions to block domains, coordinate financial institutions, and establish administrative and technological measures that render illegal operators unable to function.

Brazil has built a consistent regulatory framework for fixed-odds betting, supported by comprehensive legislation, detailed ordinances, and precise obligations imposed on authorized companies. This framework acknowledges consumer vulnerability and establishes robust protection mechanisms.

Authorized operators already offer internationally recognized tools and demonstrate commitment to responsible practices. The fundamental difference between the legal and illegal markets lies precisely here: only authorized operators are subject to this set of obligations and only they implement effective protection measures for bettors.

For this reason, combating the illegal market emerges as one of the primary goals to be achieved. It is not merely a fiscal issue, but one of public health and social protection. Every bettor driven to the illegal market becomes an unprotected citizen exposed to predatory practices without any safeguards.

At the same time, continuous and rigorous oversight of licensed companies is essential to ensure full compliance with their obligations. Having rules is a necessary condition but not a sufficient one. Preventive policies must be effectively applied, verification mechanisms must be improved, and cooperation among the State, companies, and civil society must become permanent.

The path is set: the legal framework is consolidated, the tools are available, and the social commitment is defined. The challenge now is to ensure that this system works fully in practice — effectively protecting bettors, especially the most vulnerable, and consolidating a legal, transparent, and socially responsible market capable of combining economic development with the protection of rights.

Letícia Ferraz
Director of Research and Operations at LabSul: Laboratory for Human Rights and New Technologies.
Partner at Borges e Ferraz Advogados Associados.Graduate of PUCRS, with specialization in public law. Works as a lawyer and researcher.