SiGMA Rome Warns Brazil’s Betting Ban Could Benefit Illegal Operators
Brazil.- 6 November 2026 | www.zonadeazar.com Brazil’s online betting ban became a central topic of discussion at SiGMA World 2026 in Rome, where industry executives and regulatory specialists questioned the measure’s consequences and warned about the potential expansion of illegal gambling.
The panel, held on 3 November, examined the impact of Provisional Measure 1.394/2026, which prohibited fixed-odds betting and terminated existing operating authorisations.
Participants also discussed the possibility of restoring a regulated market and the challenges involved in rebuilding investor confidence.
Questions Over Brazil’s Regulatory Reversal
During the panel Brazil’s Regulatory U-Turn: From Boom to Ban, specialists examined the country’s dramatic policy shift after launching its fully regulated betting market in January 2025.
Some speakers linked the decision to Brazil’s electoral calendar and questioned whether political considerations had taken precedence over technical evidence.
These interpretations were expressed by industry representatives and form part of the wider debate surrounding the motivations and consequences of the prohibition.
Concerns About Illegal Gambling
A central argument was that removing licensed operators does not necessarily eliminate consumer demand for betting.
Panellists warned that customers could move towards unlicensed platforms operating beyond effective regulatory supervision.
The uncertainty also affects payment providers, technology companies, employees and investors connected to the Brazilian market.
Participants argued that regulatory frameworks should address illegal gambling while preserving appropriate safeguards for consumers.
BetBoom LATAM Reports 50% Decline
Stepan Dobrovolskiy, CEO of BetBoom LATAM, provided an example of the commercial impact.
He reported that the company’s Brazilian business had declined by approximately 50% since the prohibition.
Dobrovolskiy also explained that the company’s investment planning horizon had shortened considerably:
- Before the ban: three to five years.
- After the ban: three to six months.
These figures highlight the difficulties facing businesses attempting to maintain long-term projects amid regulatory uncertainty.
Supreme Court Examines the Measure
The discussion in Rome coincided with a public hearing held by Brazil’s Supreme Federal Court (STF), convened by Justice Luiz Fux.
The hearing brought together government representatives, betting industry associations and sporting organisations.
Government officials defended the prohibition as a response to gambling-related social and public health concerns.
Industry representatives, meanwhile, warned about its economic consequences and the possibility of consumers moving to unlicensed operators.
The hearing concluded without a judicial ruling, leaving the legal challenges unresolved.
Football Representatives Warn About Sporting Integrity
Sporting organisations also expressed concerns about the potential consequences of the ban.
Beyond lost sponsorship revenue, representatives of professional footballers argued that smaller clubs could face significant financial difficulties.
They also warned that expanding illegal betting activity could increase athletes’ exposure to match-fixing approaches.
These concerns place sporting integrity alongside consumer protection and economic stability in the debate.
Experts Discuss Colombia’s Experience
The panel was moderated by Nick Farley, President of Eclipse Compliance Testing, and featured:
- Stepan Dobrovolskiy, CEO of BetBoom LATAM.
- Juan Camilo Carrasco, Managing Partner at Sora Lawyers.
- Bruna Mirandola, representing Brazil’s Responsible Gaming Parliamentary Front.
- Lucimara Batista dos Reis, from Brazil’s Honorary Consulate in Malta.
- John Aquilina, former Maltese Ambassador to Brazil.
Carrasco cited Colombia’s experience with taxation on betting deposits to illustrate how certain measures can encourage consumers to seek alternatives in the illegal market.
However, he cautioned against assuming that Brazil’s situation would necessarily be repeated elsewhere in Latin America.
Could Brazil Return to Regulation?
Despite the current uncertainty, participants did not rule out the possibility of Brazil restoring a regulated betting market.
Speakers called for stronger cooperation between government and industry to establish a stable regulatory framework.
Bruna Mirandola emphasised the importance of regulation in protecting consumers and expressed confidence that Congress could find a workable balance.
The challenge would extend beyond reopening the market, as rebuilding investor confidence following the abrupt policy reversal could prove difficult.
Industry Impact and Next Steps
The SiGMA Rome discussion highlighted the differences between Brazil’s prohibition strategy and the regulatory approach advocated by industry representatives.
While government authorities prioritise reducing gambling-related harm, operators warn about illegal market growth, lost investment and employment consequences.
With BetBoom LATAM reporting a 50% decline in its Brazilian business and significantly shorter investment planning horizons, industry specialists warn that prohibition could benefit illegal operators and complicate a future return to regulated betting.
Upcoming Supreme Court decisions and the legislative consideration of the measure will be important in determining the future of Brazil’s betting market.
Edited by: @fonta
