Brazil Projects R$30 Million in Betting Oversight Fees but Allocates Only R$1 Million to Monitoring

Brazil’s 2026 federal budget projects nearly R$30 million in expected revenue from betting oversight fees, yet only R$1 million has been earmarked for monitoring and enforcement activities, raising concerns about the government’s ability to regulate the rapidly expanding gambling market.

According to the National Treasury’s draft budget, the government expects to collect R$29.9 million through oversight and authorization fees paid by licensed betting operators. However, most of this amount has been allocated to the contingency reserve, leaving just a fraction available for active supervision. Analysts warn that this budgetary approach gives the government flexibility to reassign funds elsewhere, but undermines its capacity to ensure compliance in one of the fastest-growing digital markets in Latin America.

The Prizes and Betting Secretariat (SPA) — the body under the Ministry of Finance responsible for regulating the sector — insists that betting oversight is not solely dependent on this single allocation. The SPA also draws resources from Action 2000: Unit Administration, which covers system maintenance, licensing platforms, and operational costs related to the National Betting Management System.

Despite limited funding, the SPA reported notable progress in 2025, claiming to have blocked 18,000 illegal gambling websites, initiated 66 inspection processes, and imposed 35 administrative sanctions.

However, industry observers argue that dedicating only R$1 million to supervision is insufficient to guarantee market transparency and consumer protection. “Regulation without enforcement is just theory,” one compliance expert commented, adding that efficient oversight is vital to prevent fraud, match-fixing, and tax evasion.

Brazil’s online gambling sector, projected to exceed R$40 billion in annual revenue by 2026, continues to expand following new licensing rules approved earlier this year. Yet, as the market grows, the gap between expected income and actual investment in regulation may widen — a challenge that could test the country’s ability to sustain fair and secure operations.