More than 25 million Brazilians are actively using illegal betting platforms, a figure the Ministry of Justice revealed this week that exposed the sheer scale of the crisis. Now the federal government is taking its boldest steps yet, targeting the money itself rather than just the websites.
A Number That Shocked the Nation
The figure came directly from Minister of Justice and Public Security Wellington César Lima. Around 25.2 million Brazilians are currently using irregular betting platforms.
That is roughly 12% of Brazil’s entire population placing bets on platforms operating completely outside the law.
Brazil’s regulated betting market launched on January 1, 2025. In its first full year, 79 licensed companies reported that 25.2 million people placed bets through their platforms. The illegal market running alongside it is estimated to account for between 41% and 51% of all betting activity in the country.
- Illegal market annual revenue: BRL 26 billion to BRL 40 billion
- Estimated tax losses per year: up to BRL 10 billion
- Illegal websites blocked since 2025: nearly 50,000 domains
- Operators flagged for investigation: approximately 350 companies
In the United Kingdom, a global benchmark for betting regulation, the illegal market share sits at around just 3%. Brazil’s figure of up to 51% shows exactly how deep the problem runs.

Lula Signs Decree to Freeze Illegal Betting Funds
President Luiz Inácio Lula da Silva signed Decree No. 13,033 on June 19, 2026. It gives authorities the direct power to freeze financial accounts held by unlicensed betting operators.
This is a fundamental shift in strategy. Instead of chasing illegal websites that reappear under new domains overnight, the government is now cutting off the money itself.
Once the Secretariat of Prizes and Betting (SPA) identifies an illegal operator, banks and payment processors must freeze all linked accounts within 24 hours. Financial institutions then have 48 hours to confirm in writing that they have complied with the order.
Funds confirmed as proceeds from illegal betting operations are directed to the National Public Security Fund, which the government will use to fight organized crime directly.
The announcement landed just one day after authorities launched Operation “Conto da Sorte” (Lucky Ticket), a nationwide action targeting a network of illegal betting operators. Minister César Lima called the decree “a major step against illegal betting.” Finance Minister Dario Durigan said the ordinance gives the government “even more means to combat the illegal market,” while warning that the new decree would impose strict restrictions on transactions linked to clandestine betting.
Banks and Fintechs Are Now in the Firing Line
The government did not stop at the betting operators themselves.
Ordinance No. 1,766/2026, published alongside the decree, introduces joint tax liability for financial institutions, payment service providers and advertisers that continue supporting unlicensed betting platforms after receiving official government notice.
Banks that keep processing transactions for an illegal operator, even after a formal warning, can now be held directly responsible for that operator’s unpaid taxes.
The government has already flagged 37 financial firms, mostly fintechs and payment companies, as channels moving funds tied to illegal betting. This approach marks a clear change in philosophy. Officials have acknowledged that website blocking alone is not enough, since operators frequently reappear under new domains. Targeting the financial pipeline is designed to make it structurally impossible for illegal platforms to collect deposits and pay out winnings.
Advertisers and social media promoters pushing unlicensed platforms face enforcement action too, and authorities can act without prior warning under the new framework, closing any window for operators to restructure before penalties land.
Why Millions of Bettors Cannot Tell Legal From Illegal
Enforcement alone cannot solve this. Consumer awareness is a parallel crisis running just as deep.
A survey by the Locomotiva Institute, conducted with 2,000 bettors in 2025, found that 78% of bettors in Brazil have difficulty identifying whether the platform they are using is legal or not.
Sixty-one percent of respondents admitted to placing bets on irregular platforms. Nearly half said they had already deposited money into a platform later confirmed as fake or unauthorized.
Illegal platforms are designed to look completely professional. They carry polished branding, advertise through influencers across Instagram, YouTube and TikTok, and process payments without friction. The line between a licensed site and a clandestine one is almost invisible to the average bettor.
One key signal bettors can use: authorized platforms in Brazil are required to operate under the “.bet.br” domain. Any site operating under a different domain structure has not been licensed by the Secretariat of Prizes and Betting.
ANJL Backs the Push but Warns the Battle Is Far From Over
The National Association of Games and Lotteries (ANJL) publicly backed the new government measures, calling the decree an important step in weakening the underground market and improving consumer protection.
ANJL President Plínio Lemos Jorge said the data released by the government fully justifies stronger inspection and monitoring. He pointed to the cooperation agreement between ANJL, the SPA and the National Telecommunications Agency (Anatel) as the foundation for the intelligence work behind these latest announcements, including a joint monitoring laboratory focused on tracking and analyzing the betting market in real time.
“Combating the illegal betting market is a permanent challenge. The clandestine industry operates with a high degree of technological sophistication and adapts very quickly, which prevents any definitive assessment of the sufficiency of the measures adopted. What works today may no longer be effective tomorrow.”
— Plínio Lemos Jorge, President of ANJL
His warning is direct: no single decree will win this fight. The illegal market adapts, rebuilds and finds new payment routes as fast as enforcement closes old ones. The association described the confrontation as permanent, coordinated and dynamic rather than a one-time push.
Despite the challenges, Brazil’s legal betting market is delivering real results. The Federal Revenue Service collected BRL 9.95 billion in taxes from licensed operators across 2025. Between January and April 2026 alone, that number reached BRL 4.586 billion, nearly double the same period in 2025. Brazil is now the fifth-largest betting market in the world, sitting behind only the United States, the United Kingdom, Russia and Italy.
With the 2026 FIFA World Cup currently driving record betting volumes across the country, the stakes have never been higher. Analysts estimate Brazil could see around BRL 19 billion in World Cup betting activity alone. For the regulated sector, that is both a massive opportunity and the biggest stress test the market has faced since launching just 18 months ago.
Brazil now has the laws, the decrees and the financial enforcement tools to go after illegal betting at a level it never has before. The challenge is whether authorities can maintain that pressure long enough to push millions of bettors toward safe, licensed platforms and permanently choke the clandestine industry out of oxygen. With 25 million people still gambling in the shadows, the work is far from done, and the people who will feel the difference most are ordinary Brazilians who deserve to bet on platforms that actually protect them. What do you think? Can Brazil’s latest crackdown finally bring the illegal betting market under control? Drop your opinion in the comments below.





