EstrelaBet business director Fellipe Eduardo Fraga said in an interview that illegal betting represents about 50% of Brazil’s market. He said tackling the unregulated sector could generate more than R$10bn in tax revenue for the country.
The estimate signals the potential scale of tax revenue tied to enforcement against unregulated betting in Brazil.
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Lottopar asked Febraban to amend and clarify its note on bank self-regulation concerning false accounts and accounts linked to illegal betting. The Paraná lottery authority wants the note to recognise state authorisations for lotteries in regulated markets, citing the legal authority of states to operate and oversee operators within their territories.
Brazil’s banking federation Febraban announced mandatory protocols for banks to identify and block suspicious transactions and close accounts linked to unauthorised betting platforms. Banks must report cases to the Central Bank and submit compliance declarations to Febraban; breaches may bring warnings or exclusion from the federation’s self-regulatory system.
Banks and payment institutions closed 323 accounts linked to suspected illegal betting operations in Brazil during the first quarter of 2026, according to data obtained by Pay4Fun from the Finance Ministry. The closures comprised 65 accounts in January, 127 in February and 131 in March, after activity inconsistent with account holders’ declared business was identified.
Brazilian authorities said financial and payment institutions closed 550 bank accounts during 2025, with nearly half linked to unauthorised betting operators. Since the regulations took effect, the SPA has blocked more than 25,000 illegal websites in coordination with Anatel.
Reportedly, Illegal platforms attract nearly half of Brazil’s online betting traffic. The outlet described their continued use despite strict regulation intended to protect consumers.