Brazil Regulator Targets Illegal Betting Operators

Brazil’s gambling regulator has stated that the country’s regulated betting market has made significant progress since the introduction of formal oversight, while identifying illegal operators as the sector’s primary challenge going forward.

Speaking at the Future of Betting in Brazil conference, Carlos Renato Xavier, Deputy Secretary for Monitoring and Supervision at the Secretariat of Prizes and Bets (SPA), said the first year under Brazil’s updated regulatory structure has produced positive results. He noted that continuous supervision has improved consumer protection and provided authorities with stronger mechanisms to address risks within the market.

Following regulatory reforms introduced in 2024, Brazil entered a new phase of regulated sports betting. Since then, the SPA has focused on licensing operators, establishing technical requirements and developing the framework needed to oversee the industry effectively.

Xavier acknowledged that the transition required adaptation from both operators and regulators. According to him, authorities worked closely with betting companies, suppliers and other stakeholders while building and refining the regulatory environment.

He also highlighted that Brazil benefited from studying established gambling jurisdictions before implementing its own framework. By examining regulatory approaches used in other markets, officials were able to identify practices they believed would strengthen consumer safeguards and reduce potential risks.

The oversight process now involves multiple government bodies beyond the SPA. Recent discussions in Brazil’s National Congress included representatives from public health authorities, advertising regulators and consumer protection agencies, reflecting a broader governmental effort to monitor the betting sector.

As the regulatory structure becomes more established, authorities are increasingly focusing on combating illegal gambling operations.

According to Xavier, enforcement against unlicensed operators has become a priority. The government recently introduced two new measures aimed at strengthening action against illegal gambling activity, supported by coordination between the Presidency, the Ministry of Finance and the Ministry of Justice.

Officials maintain that these actions are intended to reinforce the legal betting market rather than restrict it. Stronger enforcement is viewed as essential to protecting consumers, safeguarding economic interests and maintaining confidence in the regulated sector.

For Brazil’s regulators, the focus is now shifting from building the framework to ensuring compliance with it, while increasing pressure on operators that continue to offer betting services outside the country’s legal requirements.