Regulation1 min read
Industry representatives say Brazil's betting ban may drive users to illegal sites and erode match-fixing protections.
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IBIA's third-quarter 2026 integrity report says Brazil's regulated betting framework scored 77 out of 100 before the ban took effect on 25 September 2026. Citing H2 Gambling Capital estimates, the report says the regulated market's annualised R$40bn could fall to zero while offshore betting rises from R$17bn to R$42bn, shifting R$25bn to overseas operators.
Brazil's ban on licensed betting has removed the requirement for operators to report suspicious bets, the International Betting Integrity Association (IBIA) said in its third-quarter 2026 integrity report, which gave the country's pre-ban regulatory framework a score of 77 out of 100. The framework was ended on 25 September 2026, according to the report.
Stellar Gaming said municipal laws restricting betting advertising in public spaces risk strengthening the illegal market. The Brazilian holding, which operates a licensed betting brand, said curbs aimed only at regulated operators could expose consumers to unlicensed platforms. Chief business officer Fellipe Fraga said the concern over responsible gambling is valid but restrictions should apply proportionally.
Brazil's President Luiz Inácio Lula da Silva said the ban on betting operations in the country's national territory is an irreversible decision. The report did not give further details of the measure or its scope.
Reportedly, Federal deputy Jorge Goetten of the Republicans party has introduced Bill 5.587/2026, which would provide compensation to people who lost money on illegal betting platforms. The bill was submitted on Thursday 15 October.
SBC Noticias reported, that eight illegal fixed-odds betting platforms operating in Brazil collectively had over one million Telegram subscribers. The figure covered their channels on the messaging service.