Brazil strengthens fight against illegal betting as regulated market grows

Brazil's regulated betting market continued to expand during the first half of 2026, supported by stronger tax revenues, enhanced regulatory oversight and a broader effort to reduce the influence of illegal betting. Industry representatives believe that improved enforcement, national advertising standards and greater cooperation between public authorities are helping strengthen the country's newly regulated gambling environment.

The latest discussion follows comments from Plínio Lemos Jorge, President of the Associação Nacional de Jogos e Loterias (ANJL), who highlighted the importance of maintaining a balanced regulatory framework that supports licensed operators while limiting opportunities for unlicensed gambling businesses.

Speaking about recent market developments, Jorge said that continued enforcement against illegal betting operators remains one of the most significant priorities for ensuring the long-term sustainability of Brazil's regulated gambling industry.

Regulated betting market records strong tax growth

Brazil's legal betting market generated substantially higher tax revenues during the first five months of 2026 compared with the same period a year earlier. According to figures referenced by ANJL, tax collections increased from approximately BRL3.1 billion between January and May 2025 to BRL5.89 billion during the corresponding period in 2026.

The figures suggest that the regulated market is continuing to attract greater participation while delivering increased public revenue through licensed operations.

According to Jorge, the growth reflects the gradual maturation of Brazil's regulated betting framework and demonstrates how legal operators contribute to the wider economy through taxation and regulatory compliance.

He stated:

“We went from BRL3.1 billion ($620 million) between January and May 2025 to BRL5.89 billion this year.”

Although official figures for the full first half of 2026 had not yet been published at the time of the interview, industry observers expect June's results to show additional growth following increased betting activity during the FIFA World Cup.

World Cup provided additional momentum

The 2026 FIFA World Cup represented the first edition of the tournament to take place after Brazil introduced its regulated online betting framework.

According to Jorge, the tournament created an opportunity for consumers to engage with licensed betting operators within a regulated environment that includes consumer protection measures, responsible gambling obligations and integrity monitoring.

Football traditionally generates significant betting activity across Brazil and the legal market benefited from operators being able to promote their regulated services under nationally established rules.

Jorge also noted that the Secretariat of Prizes and Bets (Secretaria de Prêmios e Apostas) strengthened oversight before the tournament by reinforcing requirements relating to integrity, advertising standards and operator communications.

Licensed brands also expanded their visibility through promotional campaigns in restaurants, bars and entertainment venues. These initiatives reflected a wider marketing strategy that extends beyond digital advertising while remaining subject to regulatory requirements.

Advertising rules aim to improve consumer protection

Advertising continues to be one of the most closely monitored aspects of Brazil's regulated betting market.

Jorge argued that recently introduced federal advertising requirements should not be viewed as obstacles for licensed operators. Instead, he believes clearer rules provide stronger consumer protection while encouraging responsible commercial practices throughout the industry.

According to him, transparent advertising standards help distinguish licensed businesses from illegal betting operators that typically operate without regulatory oversight or consumer safeguards.

He suggested that stronger communication standards contribute to a healthier marketplace by improving public confidence in licensed operators while reinforcing responsible gambling messages.

Rather than restricting legitimate businesses unnecessarily, the updated framework seeks to create a more predictable regulatory environment for both operators and consumers.

Debate continues over municipal advertising restrictions

While federal authorities continue implementing national betting regulations, some municipalities have explored local restrictions on gambling advertising within public spaces.

Jorge expressed concern that individual municipal measures could create inconsistent legal obligations for operators already complying with federal legislation.

He stated:

“The Federal Constitution clearly states, in Article 22, that legislation on commercial advertising falls exclusively within the jurisdiction of the federal government.”

According to his interpretation, maintaining a single national regulatory framework provides greater legal certainty for licensed businesses while avoiding conflicting requirements across different regions of the country.

Industry stakeholders have generally argued that consistent national standards make compliance more practical for operators while supporting effective regulatory supervision.

Self-regulation complements government oversight

Alongside statutory regulation, Brazil's betting sector has also developed industry-led initiatives designed to promote responsible advertising practices.

Jorge referred to Annex X, developed through cooperation between ANJL, the Instituto Brasileiro de Jogo Responsável (IBJR) and Conar, Brazil's National Council for Advertising Self-Regulation.

These measures complement government regulations by encouraging responsible marketing standards among licensed operators.

According to Jorge, recently introduced ministry ordinances should further strengthen consumer messaging related to responsible gambling without creating unnecessary uncertainty for compliant operators.

Industry representatives generally view cooperation between regulators and self-regulatory organisations as an important element in building a sustainable licensed market.

Illegal betting remains the biggest challenge

Despite continued market growth, Jorge identified illegal betting as the most significant challenge facing Brazil's regulated gambling sector.

Unlicensed websites continue attracting a substantial portion of online betting activity despite increased enforcement efforts by public authorities.

Unlike licensed operators, illegal platforms generally operate outside Brazil's regulatory framework and may not provide the same consumer protections, financial safeguards or responsible gambling measures required under national legislation.

Jorge acknowledged that enforcement efforts have reduced the presence of some illegal operators but cautioned that significant work remains.

He also warned that excessive taxation or overly restrictive advertising rules could unintentionally encourage consumers to migrate toward unlicensed platforms that ignore regulatory obligations altogether.

Maintaining an attractive regulated market while continuing strong enforcement against illegal betting is therefore viewed as an important policy objective.

Government strengthens enforcement efforts

Brazilian authorities have continued expanding cooperation between regulatory and technical agencies to combat illegal betting.

Jorge highlighted collaboration involving the National Telecommunications Agency (Anatel) and the Secretariat of Prizes and Bets, which have established a specialised laboratory focused on monitoring illegal gambling activity.

The initiative supports technical analysis, market intelligence and information sharing aimed at identifying unauthorised operators and improving enforcement capabilities.

According to Jorge, this coordinated approach allows authorities to monitor developments more effectively while supporting licensed businesses that comply with regulatory requirements.

The strategy also demonstrates the government's broader commitment to protecting consumers and preserving confidence in the regulated betting market.

Political attention expected to increase

Looking ahead, Jorge believes betting regulation is likely to receive increased political attention during the second half of 2026 as Brazil approaches future electoral activity.

Public policy discussions surrounding taxation, advertising standards, consumer protection and enforcement against illegal betting are expected to remain prominent topics.

Industry participants are likely to continue advocating for stable regulation that encourages investment while ensuring effective oversight.

Many observers believe maintaining regulatory consistency will be essential for preserving investor confidence and supporting continued market development.

Conclusion

Brazil's regulated betting market continues to demonstrate measurable growth through rising tax revenues and expanding regulatory oversight. The first half of 2026 has highlighted both the opportunities created by legalisation and the ongoing challenges associated with combating illegal betting.

Industry representatives argue that balanced regulation, national advertising standards and stronger enforcement remain essential for protecting consumers while supporting compliant operators. Continued cooperation between government agencies, regulators and industry organisations is expected to play a significant role in reducing the influence of illegal operators.

As Brazil's regulated market continues to mature, policymakers face the task of maintaining a framework that promotes responsible gambling, delivers public revenue and provides legal certainty without creating conditions that unintentionally benefit the unlicensed sector. Successfully addressing illegal betting is likely to remain one of the defining priorities for the country's gambling industry in the years ahead.

FAQs

What is illegal betting in Brazil?
Illegal betting refers to gambling services that operate without the required authorisation under Brazil's regulatory framework and do not comply with national licensing requirements.

Why is Brazil focusing on illegal betting?
Authorities are increasing enforcement because illegal operators can undermine consumer protection, reduce tax revenue and compete unfairly with licensed businesses.

Who is ANJL?
ANJL is the Associação Nacional de Jogos e Loterias, an industry association representing licensed gambling and lottery interests in Brazil.

Why did Brazil's betting tax revenue increase in 2026?
Higher tax revenue reflects continued growth in the regulated betting market as more consumers participate through licensed operators that comply with Brazilian law.

How did the FIFA World Cup affect Brazil's betting market?
Industry representatives believe the tournament increased betting activity while giving licensed operators greater opportunities to engage consumers within a regulated environment.

What role does the Secretariat of Prizes and Bets play?
The Secretariat of Prizes and Bets oversees Brazil's regulated betting sector by establishing licensing requirements, supervising operators and supporting market integrity.

Why are advertising rules important for betting operators?
Advertising rules help ensure promotions are responsible, transparent and designed to protect consumers while supporting a sustainable regulated market.

What is Anatel's involvement in betting regulation?
Anatel cooperates with government authorities by providing technical support and monitoring capabilities to help identify and combat illegal betting operations.

Can municipalities create their own betting advertising bans?
This remains a subject of legal debate. Industry representatives argue that advertising legislation falls under federal jurisdiction according to Brazil's Constitution.

What is the biggest challenge facing Brazil's regulated betting market?
Many industry participants believe illegal betting remains the primary challenge because unlicensed operators continue competing with regulated businesses while operating outside legal requirements.