The Brazilian fixed-odds betting market has just opened a new chapter—and it comes with a warning sign. The Federal Court of Accounts (TCU) has approved an audit to assess the effectiveness of the monitoring and enforcement measures adopted by the Secretariat of Prizes and Betting in the fight against money laundering (“AML”).
More than just a natural step in the regulatory maturity process, this initiative sends a clear message to the industry: the State is alert and ready to act, and operators that have yet to implement robust and effective compliance systems run the serious risk of falling behind, or even jeopardizing the continuity of their operations.
The walls are closing in on those still relying on weak or merely formal controls. And that should come as no surprise.
Today, it’s not enough to comply with the law on paper; operators must demonstrate that they know their users, understand their behavior patterns, and are capable of identifying transactions that require increased scrutiny. KYC is no longer a checklist item, it is now part of the strategic core of the business, and its effectiveness must be supported by a clear and sustainable audit trail that documents decisions, criteria, and justifications.
The absence of proven, effective controls is not merely a regulatory gap, it is a real risk with potential consequences including administrative sanctions, criminal liability for executives, and severe reputational damage.
In a landscape marked by misinformation, where public opinion is often shaped by alarming headlines and incomplete or misleading narratives, building a culture of sound governance is no longer just a regulatory response: it has become a matter of institutional survival and protection. Amid this climate of mistrust, even well-structured operators risk becoming easy targets in an arena that, for now, leans more toward judgment than technical assessment.
It is undeniable that part of the sector’s credibility problem stems from the illegal market, which operates outside any supervision, without adhering to minimum integrity standards, and offers no security or protection for players. The presence of unlicensed sites poisons public perception and puts all operators under suspicion, including those playing by the rules. In this context, investing in compliance is a clear declaration of which side the company stands on.
Operators that adopt strong AML mechanisms, integrated with monitoring technology and financial intelligence tools, are more likely to position themselves as leaders in an industry where compliance has become a competitive edge.
This is a time of transition: from improvisation to structure, from reactivity to strategy. Operators who recognize this shift and prepare accordingly will lead the way in this new market.
Camila Petrone
Founding Partner, Petrone Garcia Advogados
Lívia Fabor & Luiza Viana
Attorneys, Petrone Garcia Advogados
