Brazil blocked 17,000+ illegal betting sites since 2023 Law

Brazil blocked 17,000+ illegal betting sites since 2023 Law

The Brazilian government has steadily strengthened its strategy against illegal gambling since the entry into force of Betting Law 14,790/23, approved in December 2023. According to the Ministry of Finance, more than 17,000 unlicensed betting websites have been blocked, which averages 1,700 pages closed per month.

The information was presented during a public hearing in the Chamber of Deputies, held on August 20, where sector representatives and authorities analyzed the impact of the illegal market on the Brazilian economy.

According to Fernando Vieira, executive director of the Brazilian Institute of Responsible Gambling (IBJR), around 50% of the platforms currently operating in Brazil do so without authorization, generating unfair competition against companies that comply with regulations.

The data shared by the entity reveal that the regulated market already moves about R$38 billion annually, while the illegal market ranges between R$26 billion and R$40 billion, nearly matching the volume of the formal sector.

In addition to the risks linked to minors accessing betting, Vieira emphasized the fiscal loss implied by tax evasion in these illicit operations: “What concerns us is the amount of revenue that the government and society lose — approximately R$10.8 billion per year — due to the lack of collection on illegal gambling,” he stated.

For his part, André Wainer, coordinator of Monitoring and Money Laundering at the Secretariat of Prizes and Betting of the Ministry of Finance, indicated that there are currently 80 companies authorized to operate in the Brazilian market and that financial controls have been significantly strengthened since early 2024.

“We verify the financial institutions that process payments from unauthorized sites and formally notify them,” explained Wainer, highlighting the joint work between the Ministry and the Central Bank to track suspicious operations.

During the debate, Deputy Caio Vianna (PSD-RJ), president of the Permanent Subcommittee on Sports Betting Regulation, defended the idea of applying a “financial choke” to illegal operators as a priority control measure. “Closing websites is not enough; these criminals can reopen portals within hours. The most effective is to cut off their payment channels and sources of funding,” he assured.

Despite advances in oversight, the challenge persists: the illegal online betting market continues to absorb a significant portion of traffic and transactions, affecting both tax collection and consumer protection.

The federal government keeps open the possibility of tightening sanctions and improving technological cooperation with telecommunications companies and banking entities, aiming to consolidate a safer and more transparent digital environment for the betting industry in Brazil.

Tags: Brazil, online betting, blocking online betting sites, illegal gambling block