Brazil’s Betting Ban Could Drive Growth in Illegal Gambling Market
Brazil.- 6 November 2026 | www.zonadeazar.com Brazil’s betting ban, introduced through Provisional Measure 1.394/2026, is raising concerns among operators, sports clubs and industry representatives, who warn that prohibition could encourage the expansion of illegal gambling.
During a public hearing held on 3 November before the Supreme Federal Court (STF), 34 organisations discussed the measure’s consequences for consumer protection, sporting integrity and the economy.
The Government defended the prohibition, arguing that the previous regulatory framework had failed to adequately address the social and public health risks associated with gambling.
Brazil Requests Blocking of 36,905 Websites
The Ministry of Justice reported that, between 25 September and 29 October 2026, it had requested the removal or blocking of 36,905 websites associated with illegal betting.
The figure highlights the scale of the authorities’ enforcement efforts.
However, industry representatives warned that removing licensed operators could make the supervision of illegal gambling more difficult.
According to this argument, prohibition would not necessarily eliminate betting demand but could redirect consumers towards platforms operating beyond regulatory oversight.
Industry Warns of Weaker Consumer Protection
Pietro Cardia, representing the National Association of Games and Lotteries (ANJL), presented information on the regulated market before the ban.
According to Cardia, more than 60% of gambling activity had been taking place within the licensed sector.
He also reported that betting volumes had declined by 32% year-on-year across the latest three months of data published by the Ministry of Finance.
The association believes eliminating the licensing framework could encourage the growth of operators that do not comply with player identification, monitoring and consumer protection requirements.
More Than 66,000 Illegal Websites Blocked
Udo Seckelmann, a lawyer representing football club Botafogo, highlighted enforcement results achieved under the regulated system.
According to the figures presented, the Secretariat of Prizes and Bets (SPA) had authorised 188 websites, while more than 66,000 illegal sites were blocked during 20 months of regulation.
These figures were used to support the importance of maintaining a system of identified and supervised operators.
Industry representatives argued that regulated companies help detect suspicious activity and provide relevant information to enforcement authorities.
Football Clubs Warn About Match-Fixing Risks
One of the central concerns raised by Brazilian football clubs involves sporting integrity.
Representatives explained that licensed operators had implemented mechanisms to identify suspicious betting patterns.
The representative of São Paulo FC stated that regulated companies had begun monitoring, reporting and removing potentially suspicious bets.
Clubs had also taken responsibility for educating players and staff about match-fixing risks and establishing reporting channels.
The concern is that these safeguards could become less effective if more betting activity moves to unlicensed platforms.
Government Defends the Prohibition
Brazilian authorities presented arguments supporting the ban during the hearing.
Justice Minister Wellington César Lima e Silva criticised betting platforms and the mechanisms used to encourage continued participation.
Health Minister Alexandre Padilha presented indicators relating to problematic gambling and suicide.
Attorney General Jorge Messias argued that the previous regulatory framework had failed to provide adequate protection for Brazilian families.
The Government maintains that the social and public health risks associated with betting justify stronger restrictions.
Debate Over Consumer Spending
The hearing also addressed the financial impact of gambling on households.
Ana Clara Marques de Barros Santos, representing Aigaming, presented SPA data indicating that:
- 70% of bettors spent up to BRL50 per month.
- Average betting sessions lasted 12 minutes.
Industry representatives used these figures to challenge the assumption that betting necessarily involves high levels of household spending.
However, organisations including the Brazilian Association of Supermarkets (Abras), the National Confederation of Commerce (CNC) and the National Confederation of Industry (CNI) opposed betting, highlighting concerns about consumption, indebtedness and public health.
Supreme Court to Consider the Ban
The hearing forms part of the constitutional examination of Provisional Measure 1.394/2026.
The ANJL has challenged the measure before the STF and asked Justice Luiz Fux to suspend the prohibition while the case is considered.
The court will assess the arguments presented and determine the next procedural steps.
The central legal question is whether gambling-related risks can be addressed through stronger regulation or whether they justify a general prohibition.
Industry Impact and Next Steps
The hearing highlighted fundamental differences between the Government and the gambling industry over how best to protect consumers.
While authorities view prohibition as necessary to reduce social harm, operators warn that it could strengthen the illegal market and weaken safeguards against fraud and match-fixing.
With 36,905 website blocking requests issued in just over a month and more than 66,000 illegal platforms blocked during the regulated period, Brazil faces the challenge of combating unlicensed gambling while determining the future of its betting legislation.
The next significant development will come from the Supreme Federal Court as it considers the legal challenges against the prohibition.
Edited by: @fonta
