Brazil’s Government Takes Action Against Illegal Betting

On Friday, President Lula signed a decree aimed at tackling illegal betting and enhancing the regulated market in Brazil. The measures are viewed by the ANJL as a progress in safeguarding the regulated sector, stemming from ongoing collaboration between the Secretariat of Prizes and Bets (SPA), representatives from the regulated industry, and other stakeholders involved in this regulatory landscape. Minister of Justice Wellington César Lima stated in a press conference that approximately 25.2 million Brazilians engage in betting on illegal websites. ANJL President Plínio Lemos Jorge highlighted this figure, asserting that it underscores the magnitude of the issue and validates the need for stricter enforcement measures. Lemos Jorge commented, 'The illegal betting industry exposes consumers to risks, evades taxes and generates unfair competition in relation to companies that comply with Brazilian regulatory requirements. The announced actions represent an important step in strengthening the regulated market. The advances are the result of an environment of dialogue and institutional cooperation that allowed us to gather information, develop tools and expand our understanding of the activities of illegal operators in the country.' He noted that the SPA has played a crucial role in solidifying the sector's regulation and establishing mechanisms to enhance state actions against illicit operators. The new decree enhances the state's capacity to target both illegal operators as well as the infrastructure that enables their operations. 'Combatting the illegal betting market is a constant challenge,' he acknowledged. 'The clandestine industry operates with a high degree of technological sophistication and adapts very quickly, which prevents any definitive assessment of the effectiveness of the measures adopted. What works today may cease to be effective tomorrow. Therefore, this fight needs to be continuous, coordinated and dynamic.' The IBJR also expressed its support for the federal government and the Ministries of Finance and Justice following the issuance of Decree No 13,033/2026 and Ordinance No 1,766/2026. These regulations cover the blocking of funds linked to illegal betting activities and establish the joint liability of financial institutions, payment services, and advertisers regarding tax collection related to illicit fixed-odds betting operations. To establish a regulated and healthy market in Brazil, it is essential to undermine and diminish clandestine activities. Research by the Locomotiva Institute in collaboration with LCA estimates that the illegal betting market generates approximately BRL40 billion ($7.7 billion) each year. Carlos Lima, president of the IBJR, indicated that this results in an estimated loss of BRL10.8 billion annually to public finances, effectively depriving important societal sectors of resources. He stated, 'Initiatives like this represent a crucial step forward in the fight against illegality. In addition to strengthening public revenue, the measure directly contributes to increasing the safety of bettors. It also protects operators who act in accordance with the law. At the same time, it promotes the integrity and sustainability of the sector in the country, which operates under one of the most modern regulations in the world.' The IBJR reiterated its dedication to collaborating closely with authorities to foster a safe, transparent, and fully regulated betting environment in Brazil.