IBJR warns of money laundering advance via illegal gambling
The Brazilian Institute of Responsible Gaming (IBJR) warned that the growth of illegal betting in the digital environment has become one of the main channels used by organized crime for money laundering in Brazil. According to the organization, the lack of controls and verification mechanisms on clandestine platforms facilitates illicit operations and significantly hinders the tracking of funds.
Through a visual campaign based on a “timeline,” the IBJR explained how illegal betting sites are used as part of a structured money laundering circuit. In contrast, it highlighted that the sector’s regulation process represents a significant advance for the industry by raising standards of control, supervision, and compliance within the formal market.
Regulation as a control tool
The Institute emphasized that Law No. 14,790/2023 introduced strict criteria for the prevention of financial crimes, establishing obligations such as full user identification, document validation, and the use of facial recognition technologies. These requirements, they pointed out, help reduce the risks associated with money laundering and strengthen the integrity of the system.
The laundering cycle through illegal gambling
In its analysis, the IBJR identified five key stages in the use of clandestine platforms for money laundering:
Conversion of illicit money
Funds originating from criminal activities such as corruption, trafficking, or theft are converted into cryptocurrencies, international cards, or third-party bank accounts without proper verification, making their traceability difficult.
Transfers outside the regulated system
The resources are sent abroad or moved between intermediaries and front men, beyond the reach of control bodies such as the Central Bank, the Federal Revenue Service, or Coaf.
Entry into illegal betting platforms
Without identification processes, funds are deposited on clandestine sites that accept payment methods with low or no control. Brazilian regulations, on the other hand, only authorize traceable methods such as PIX, TED, or debit cards.
Simulation of legitimate activity
Bets serve solely to “circulate” the money and give it an appearance of legality, regardless of whether the player wins or loses.
Reintegration into the financial system
Funds are withdrawn and sent to accounts in regulated institutions, simulating legal profits that can later be used to purchase goods and services.
Risks of excessive tax pressure
The IBJR also warned about initiatives under debate in Congress that could weaken the current control scheme if they impose an excessive burden on regulated operators. According to the Institute, a disproportionate tax increase could affect the viability of legalized platforms and push bettors toward the clandestine market.
According to a study by LCA Consultores cited by the entity, illegal gambling moves about R$ 40 billion annually (around US$ 7.256 billion) and generates an approximate loss of R$ 10.8 billion (US$ 1.59 billion) in tax revenue. In this regard, the IBJR argues that greater formalization of the sector would not only strengthen controls but also allow for increased public revenues and reduce the financial system’s exposure to illicit activities.
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