Brazil advances new legal framework to fight illegal betting market

Brazil’s Chamber of Deputies has moved forward with Bill No. 4,044/2025, a proposal designed to strengthen financial, administrative, technological and criminal enforcement against illegal gaming and betting operators.

Brazil is advancing its fight against illegal betting after Bill No. 4,044/2025 moved forward in the Chamber of Deputies. The proposal creates a Legal Framework for Combating the Illegal Gaming and Betting Market and amends Law No. 14,790/2023, the federal law that regulates fixed-odds betting in the country. The text is aimed at strengthening repression of clandestine gambling operations through financial, administrative, technological and criminal measures.

The bill was introduced by deputies Paulo Litro, Raimundo Santos and Merlong Solano and defines an unauthorised betting operator as any individual or legal entity that directly or indirectly exploits betting or gaming activity without authorisation from the competent authority. According to the official text, the proposal seeks to give the state stronger instruments to prevent, suppress and punish unauthorised fixed-odds betting, online games and other lottery-style activities in Brazil.

The initiative comes as Brazil continues to build its regulated betting market while trying to reduce the influence of offshore and unlicensed operators. Law No. 14,790/2023 created the main federal framework for fixed-odds betting, including rules for operators, electronic betting channels and online games, but lawmakers now argue that the legal market needs stronger protection against illegal competitors.

One of the main objectives of PL 4,044/2025 is to attack the financial infrastructure used by illegal platforms. The proposal focuses on payment flows, administrative liability and mechanisms that can make it harder for unauthorised operators to process deposits, withdrawals and player transactions. This reflects a wider enforcement trend in Brazil, where authorities increasingly see illegal betting not only as a licensing problem, but also as a financial-crime and consumer-protection issue.

The bill also reinforces the role of technology in enforcement. Its text refers to normative, financial, administrative, technological and criminal instruments, showing that lawmakers want tools capable of responding to digital betting operations that can quickly change domains, payment channels and advertising strategies.

The proposal has already passed through the Communications Committee with amendments and remains subject to further analysis in the Chamber, including review by the Finance and Taxation Committee and the Constitution, Justice and Citizenship Committee, before it can move to a final plenary vote. The official legislative file classifies the proposal as subject to plenary consideration and ordinary procedure.

For licensed operators, the bill could be positive if it reduces competition from illegal platforms that do not pay taxes, follow advertising rules or apply responsible gambling controls. However, it could also increase compliance expectations for the regulated market, especially around payments, monitoring and reporting obligations.

For Brazil’s betting sector, PL 4,044/2025 signals that the country’s regulatory debate is moving into a second phase. After creating a legal framework for authorised operators, lawmakers are now trying to protect that framework from illegal competition. The key question is whether Brazil can enforce the rules strongly enough to move players toward licensed platforms without creating excessive complexity for compliant operators.