VIE 5 DE DICIEMBRE DE 2025 - 08:07hs.
João Gerçossimo, EstrelaBet CEO

Legalizing betting isn't enough: we need oversight

The legalization of iGaming in Brazil brought clear rules and created a legal framework that makes the country one of the world's largest in the sector. But without effective oversight, clandestine companies still operate, harming consumers and revenue. In an article for Poder360, João Gerçossimo, CEO of EstrelaBet, advocates for rigorous action to block illegal websites and educate bettors to ensure a safe and sustainable market.

Brazil took a historic step by regulating online betting in 2025, creating a clear legal framework for a sector that until then had operated in a gray area. The institutionalization of the SPA (Secretariat of Prizes and Betting), linked to the Ministry of Finance, established technical criteria, compliance rules, social responsibility measures, and security requirements. However, as this new system begins to operate, consumers still face a major obstacle: distinguishing between companies that rigorously comply with the requirements and those that act opportunistically and clandestinely.

According to a study by Instituto Locomotiva in partnership with LCA Consultores, 61% of respondents admitted to having bet on irregular platforms this year. One of the findings of the study, commissioned by IBJR (Brazilian Institute of Responsible Gaming), shows that a significant portion of the population remains vulnerable—either because they cannot identify whether a website is legalized, or because they consciously assume the risk of illegality. In direct comparison, it is like trusting your trip to an unlicensed driver.

The economic potential of the betting sector is significant and represents a major opportunity for the country. From January to July 2025, revenue already exceeded R$ 4.7 billion (US$870m), with a direct impact on areas such as sports, education, and public health. Even so, the same study estimates that between 41% and 51% of the Brazilian market still operates illegally, equivalent to a potential loss of R$ 10.8 billion (US$2bn) per year.

It is true that legislation has brought significant progress: mandatory identification via CPF, use of facial biometrics in each transaction, payment of high taxes, and the prohibition of guaranteed-earnings promises or any direct association with investments. But the challenge of enforcement is just as important as that of regulation.

If the country has created a modern legal framework for the sector, it is urgent to ensure consumer protection. This involves three fundamental fronts:

Monitoring whether authorized companies are truly complying with the requirements;

Cracking down firmly on illegal operators;

Continuously investing in public education.

Technology can and should be the government’s greatest ally in this mission. Tools to track access, block IPs of irregular websites, cut off payment flows, and hold accountable the platforms that host or promote illegal content must be used strategically and in coordination. In addition, public campaigns teaching how to identify an authorized site—whether by the “.bet.br” domain or by consulting the SPA’s official list—are essential.

Fixed-odds betting has been legalized and regulated. As seen with EstrelaBet, dozens of companies currently follow best practices to offer entertainment in a safe and transparent way.

In contrast, thousands of clandestine websites continue operating in Brazil, deceiving consumers and evading taxes. According to the Ministry of Finance, more than 12,500 illegal sites were blocked between October 2024 and March 2025. The problem is that many simply return with new domains, escaping enforcement and operating outside the law.

Regulation was a decisive step in providing greater security to customers. But there is still a long road ahead. Ensuring the effectiveness of this achievement requires strict oversight, accountability for illegal practices, and ongoing education campaigns. At the end of the day, the government and legalized companies must stand side by side to consolidate a sustainable, safe market aligned with the public interest.

João Gerçossimo
CEO of EstrelaBet, one of Brazil’s largest gamingtech companies. At the helm of the company, he leads strategies focused on innovation, user experience, and responsibility in the betting sector. He invests in technology, personalization, and pioneering Responsible Gaming initiatives, establishing EstrelaBet as a reference in the industry.