Coaf reports massive rise in suspicious Brazil betting operations
Brazil's Financial Activities Control Council (Coaf) has raised alarms after publishing a report revealing an unprecedented increase in alerts for irregular financial movements within the online gambling sector. During 2025, the agency recorded over 27,600 communications of suspicious operations, a figure that contrasts sharply with the 928 incidents reported in 2024.
This exponential leap is directly attributed to the implementation of the new regulation that came into effect on January 1, 2025, which obliges companies in the sector and payment institutions to strictly report any pattern of conduct that may be linked to money laundering or illicit activities.
To strengthen the surveillance network, Coaf has initiated a series of technical training sessions aimed at banks and payment platforms, with the goal of equipping them to detect irregularities early and recognize capital flow patterns typically used by clandestine operators. The transparency provided by the regulated market has allowed the State, for the first time, to have a clear view of the magnitude of transactions, although the agency warns that there is still a significant gap to cover in the fight against platforms operating without an official license.
The challenge of the illegal market and user confusion
Despite advances in oversight, official estimates indicate that nearly 40 percent of bets placed in Brazilian territory continue to be channeled through unauthorized companies. This situation has generated intense debate in the industry, where various studies, such as those conducted by Transamérica Media Company (TMC) and Instituto Esfera, suggest that high compliance costs and the tax burden for legal operators could inadvertently be fueling the growth of the clandestine market.
The economic impact of clandestinity is massive, moving annually between R$ 26 billion and R$ 40 billion. However, the most concerning data for market integrity is that 78 percent of bettors report difficulty distinguishing whether a platform has an official license from the Ministry of Finance or if it is an irregular site. This confusion not only weakens tax collection but also exposes citizens to environments where there are no guarantees of financial security or consumer protection policies.
Tags: Brazil, COAF, suspicious transactions Brazil, financial transactions Brazil, suspicious betting operations