Brazil's Crackdown on Illegal Betting: How Stronger Regulation Can Protect Players and Promote Safer Gambling

Currently, Brazil is in a situation where it needs to completely reshape its gambling sector so that it can implement stricter regulations and safer gaming in an attempt to crack down on illegal activities. After decades of semi-tolerance or outright bans on many forms of gambling, the government is launching a full-scale crackdown on illegal betting just as it opens a regulated market.

This sudden transition carries potential risks and new opportunities for operators and players. This is because stronger regulation can protect players from insecure operators, reduce fraud and money laundering, and help legitimate operators build trust. Here is how Brazil is doing it, what it means for gamblers, and what challenges lie ahead.

The Gaming Landscape in Brazil

Gambling regulations in Brazil have been controversial for a long time. For instance, many gaming activities have been banned under Decree-Law No. 3,688/1941, but there have been specific exceptions.

In late 2018, with Law No. 13,756, the government legalized fixed-odds betting in general, but there were no clear and detailed rules, or not enough enforcement capacity. This regulatory gap allowed offshore and unlicensed operators to dominate the Brazilian online betting market.

In the first half of 2025, the newly regulated fixed odds sector recorded BRL 17.4 billion in gross gaming revenue (GGR) from 17.7 million users. At the same time, governing authorities have managed to block more than 15,000 illegal betting domains since October 2024 - showing just how aggressive the enforcement push is.

“As Brazil and other emerging markets adopt stricter gambling regulations, safeguarding players must remain the top priority,” experienced gambling analysts from iGaming.com explain. “With programs like iGamingCare, we aim to show that education, transparency, and practical self-management tools can help players maintain control and gamble responsibly.”

All of these measures can be implemented in Brazil’s regulatory framework, which will help the sector achieve the settled goals faster and efficiently.

Reasons for the Crackdown on the Brazilian Gaming Market

The sudden shift toward stricter regulations is not accidental and comes at a crucial moment with well-thought-out preparations. There are several main factors leading to the necessity of fundamental changes.

• Tax Revenues and Fiscal Pressure – The government authorities now see legal betting as a serious revenue source. Under Law No. 14,790/2023, operators will be taxed on GGR (with an initial rate of 12%) and must pay a high entry/licensing fee (BRL 30 million for three brand domains).

• Player Protection, Addiction, Responsible Gaming Initiatives – The social risk related to unregulated gambling activities is high, and proper regulations are necessary. Factors like addiction, fraud, and financial harm influence the vulnerable population.

• Money Laundering and Reputation Risks – Offshore and non-regulated providers of gambling services benefit from the lack of tight regulations and poor oversight. Local gambling regulators must aim to establish stricter control to cut money laundering activities, tokenization of bets, and other financial abuses.

These elements are part of the legal framework that the government, in collaboration with the Prizes and Betting Secretariat (SPA), has now prepared to “clear” the way for the upcoming regulated rollout starting January 2025.

The Impact of Stricter Regulations on Players

Without a doubt, like in many regulated markets, stricter control of gambling activities is essential, especially for governing authorities. This is because the government will be able to benefit from better tax revenues and, at the same time, provide a safer environment for players. Stricter control over gaming activities will lead to improved operations in connected areas.

Secure Transactions and Anti-Fraud Policies

Financial safety is one of the significant elements that players can benefit from when gaming activities are properly regulated. Under the new regulatory framework that the BR government is preparing, licensed operators must comply with strict KYC and anti-money laundering (AML) measures, including identity verification, transaction monitoring, and age checks.

The different payment channels also fall under the scope of the new regulations. Governing institutions collaborate closely with banks and financial institutions to find solutions to help prevent unauthorized transactions. In cooperation with the Central Bank, the Treasury’s Secretariat of Prizes and Betting (SPA) is expected to supervise financial institutions to block payments tied to unlicensed operators.

Player Protection and Responsible Gambling Measures

According to Law No. 14790/2023, all licensed operators must provide responsible gambling tools. These include self-exclusion, deposit and wagering limits, cooling-off periods, and loss limits.

According to the latest gambling news, restrictions related to advertising have also become tighter. Promotional content targeting minors is forbidden; no overly aggressive influencer marketing will be allowed. Additionally, controlled operators are required to use mandatory risk warnings.

Moreover, publishing RTPs, audit requirements, and dispute resolution mechanisms are meant to provide a safer environment. The new regulations allow players to contact gaming control bodies in case they detect that a licensed operator misbehaves. This is why all licensed operators must establish Brazilian entities and local bank relationships, since tracing and enforcing complaints will be easier.

Building a Safer Gambling Market in Brazil

Brazil’s long-term success in regulating gambling depends on effective collaboration between responsible institutions, education, and consistent enforcement. A well-coordinated approach can strengthen trust, reduce illegal activity, and promote responsible play.

• Cooperation Between Regulators and Financial Institutions: The Secretariat of Prizes and Betting (SPA) is partnering with the Central Bank and major payment networks to monitor transactions, block illegal sites, and identify suspicious activity. A new cyber lab improves domain blocking and data analysis, reducing the reach of unlicensed operators and increasing accountability in financial systems.

• Educating Players and Encouraging Legal Play: Public campaigns will inform players how to verify licenses and avoid rogue platforms. The government also plans stricter ad controls and sustainable tax policies to keep the legal market competitive. A transparent, evolving system will guarantee safety while keeping gambling accessible and fair.

Brazil’s Gambling Regulations – A Shift Toward Overall Security

Brazil’s crackdown on illegal betting comes at a moment of structural transformation. Strong regulation offers greater transparency, safer financial pathways, better dispute resolution practices, and a more stable operating environment. If Brazil balances firm enforcement with phased implementation and player education, it can build a safer, more sustainable gambling market.

By GamesAndCasino