Brazil to Intensify Crackdown on Unlicensed Gambling Operators

The Brazilian government is taking decisive measures to regulate its burgeoning gambling sector and crack down on black market operators. According to Regis Dudena, head of the Secretariat of Prizes and Bets (SPA) under the Ministry of Finance, Brazil’s new gambling rules will give the regulator a clear avenue to crack down on unlicensed entities, channeling more consumers to regulated offerings.

Brazil’s Gambling Framework Appears Promising

As of early 2025, Brazil has authorized only 66 operators to offer their services in its regulated betting market. This number is a far cry from the over 100 initial applicants. Speaking for EXAME, Dudena revealed many of them could not fulfill the regulator’s rigorous requirements. He noted that the SPA had no obligation to grant licenses to companies with questionable documentation or integrity.

Some companies were not approved because their authorization requests were deficient. For example, of the 100 required documents, some presented only 20.

Regis Dudena, SPA secretary

Dudena praised the government’s cautious approach, highlighting that the regulator retained the full right to deny authorization to operators with dubious conduct or evidence of illegal activities. While some fear that an overly restrictive approach could lead to a boom in unlicensed operators, Dudena noted that unauthorized entities could face measures like domain removals.

Despite the government’s initial measures to curb the proliferation of black market operators, Dudena urged for a multi-pronged strategy involving financial institutions and the Central Bank to prevent illegal betting companies from targeting Brazilians. One potential measure revolves around restricting Pix, a popular instant payment system in Brazil, from facilitating international money transfers to unlicensed operators.

Regulations Will Continue to Evolve

Brazil’s regulated gambling framework has strict requirements for licensed operators. Companies, even if foreign-owned, must be headquartered in Brazil, use financial institutions regulated by the Central Bank, follow strict anti-money laundering and player protection measures, and operate only within the confines of their license. These measures aim to promote transparency and establish a competitive yet responsible gambling ecosystem.

Operators found in breach of regulations could face a broad array of sanctions. These start with warnings for minor infractions, fines of up to R$2 billion ($330 million) in cases of serious violations, and even license suspensions if the regulator determines systematic failings or significant misconduct. Local state lotteries are not exempt from these requirements and cannot advertise or offer services beyond their geographic jurisdiction without a national license.

We are vigilant in correcting restrictions that are not effective or reinforcing rules in areas that require greater control.

Regis Dudena, SPA secretary

Dudena was confident that Brazil’s first year of regulated gambling would provide valuable insights into the sector’s dynamics, including its social and economic impacts. He acknowledged concerns about gambling harms and pledged to adapt the regulations as necessary. While the nation still faces challenges, it has demonstrated a commendable commitment to ushering in a fair and safe gambling environment.