Brazil Identifies 25 Million Users on Illegal Betting Sites as Authorities Expand Crackdown

Brazilian authorities say more than 25 million people are using illegal betting platforms, prompting a new wave of financial enforcement against unauthorised operators, payment companies and digital gambling networks.

Brazil is intensifying its crackdown on illegal betting after the government said that more than 25 million people are using unauthorised gambling platforms.

The figure was presented by Justice and Public Security Minister Wellington César Lima e Silva during the announcement of new federal measures against illegal fixed-odds betting operators. According to the minister, around 25.2 million Brazilians are betting through illegal platforms, showing that the black market remains a major challenge even after the launch of the country’s regulated betting framework.

The government also estimates that illegal betting platforms represent between 41% and 50% of the market. Authorities say this scale creates risks for consumers, weakens tax collection, damages the regulated sector and opens space for organised crime groups to move money through unauthorised operators.

The latest step is Decree No. 13.033/2026, signed by President Luiz Inácio Lula da Silva. The decree creates operational procedures for blocking financial resources linked to illegal betting operators and for transferring information that may support the forfeiture of assets in favour of the state.

Under the new system, the Secretariat of Prizes and Betting, part of the Ministry of Finance, may issue a formal notice when it identifies evidence of illegal fixed-odds betting activity. Financial institutions, payment companies and payment-arrangement providers may then be notified to block existing funds within 24 hours and stop new transactions related to the illegal operator. They must report compliance within 48 hours.

The blocked funds will be subject to administrative and legal proceedings. If the irregularity is confirmed, the resources may ultimately be directed to the National Public Security Fund, reinforcing the government’s broader strategy against organised crime.

The authorities have already taken large-scale digital enforcement actions. Government officials said that 50,000 illegal betting sites had been blocked and that 350 operators were interrupted. The government also identified 37 financial institutions allegedly involved in moving illegal gambling funds.

Brazil’s approach is increasingly focused on what officials call financial suffocation. Instead of relying only on website blocking, the government is targeting the economic infrastructure that allows illegal operators to survive. This includes bank accounts, payment flows, fintech companies, advertising networks and digital platforms.

The policy is also being expanded through tax and compliance tools. A separate measure from the Ministry of Finance establishes procedures for holding financial and payment institutions jointly liable for taxes when they continue processing transactions for unauthorised betting operators after receiving formal notice.

For the regulated gambling sector, the crackdown is important. Licensed operators face taxation, compliance, responsible gambling rules, certification requirements and anti-money laundering obligations. Illegal operators, by contrast, can attract users with fewer controls and lower costs, creating unfair competition and increasing consumer risk.

For consumers, the government’s message is that illegal platforms do not offer the same protections as authorised operators. Users may face problems withdrawing money, resolving complaints, proving transactions or accessing responsible gambling tools. They may also be exposed to fraud, identity misuse and unmonitored gambling behaviour.

The campaign also has a public-health dimension. Brazilian officials have linked gambling-related losses to wider economic and social harm, especially among younger and lower-income users. This makes the fight against illegal betting not only a regulatory issue, but also a consumer-protection and social-risk issue.

For payment companies and fintechs, the new rules create a clear warning. Financial infrastructure is now central to betting enforcement. Institutions that process transactions for illegal operators may face stronger scrutiny, blocking orders and potential tax responsibility if they continue enabling unauthorised activity.

Brazil’s market remains one of the most important gambling stories in Latin America. The country has created a regulated framework for fixed-odds betting, but the size of the illegal market shows that formalisation is only the first step. Enforcement, payment controls, advertising supervision and consumer migration to licensed platforms will determine whether the legal market can become dominant.

The conclusion is clear: Brazil is moving from regulatory launch to active enforcement. The identification of more than 25 million users on illegal betting sites shows the scale of the challenge, while the new financial-blocking mechanism gives authorities a stronger tool to attack the money flows behind unauthorised operators.