Brazil's betting ban threatens sports integrity and revenue, IBIA warns

The International Betting Integrity Association has warned that Brazil's prohibition of regulated online betting will push most wagering to illegal offshore sites and cripple sports integrity monitoring. The IBIA projects about 60 percent of Brazilian betting spend, roughly 25 billion reais, will move to unlicensed operators. The association argues Brazilian authorities will lose access to market data and customer account trails needed to investigate match-fixing. It said the loss of licensed operators means powers to tackle corruption are "significantly weaker."

In the first full year of regulated betting in 2025, the IBIA flagged 25 suspicious alerts in Brazilian sport, up from an annual average of 11 between 2021 and 2024. "Fewer alerts after prohibition will not necessarily mean less suspicious betting. They may simply mean less information about it," the association added. "If betting moves to operators beyond regulatory reach, the ability to identify suspicious patterns, trace accounts and share intelligence with investigators becomes significantly weaker."

Brazilian lawmakers have proposed amendments to the provisional measure to preserve sports betting. At least seven legislators have suggested removing the ban on fixed-odds wagering while keeping a prohibition on online casino games. Representative Bebeto proposed legalizing all betting modalities that operated before the measure was introduced, with maintained advertising restrictions. A joint committee has been appointed to examine the measure, but its leadership and schedule have not been set. Congress must deliberate on the measure by November 23, with discussions expected to intensify after the presidential runoff on October 25. The government's Secretariat of Prizes and Betting has set December 15 as the final date for licensed operators to cease activities. Authorities reported submitting 13,241 illegal betting websites for blocking in just 12 days, reinforcing concerns that the ban will fuel the unlicensed market.

The IBIA also highlighted the financial impact on Brazilian sports clubs and government revenue. Sponsorship deals with betting companies are active for 14 of the 20 top-flight Serie A clubs, accounting for 24 percent of commercial revenue. The government collected more than 8.7 billion reais in betting taxes in the first half of 2025, a revenue stream now at risk. Emanuel Macedo de Medeiros, CEO of the Sport Integrity Global Alliance, said "dismantling the regulated market is not the answer." The future of the ban is also pending at the Supreme Federal Court, where Justice Luiz Fux has yet to rule on requests for suspension from industry groups. Banks have been scheduled to return customer balances between October 9 and 14. The IBIA urged Congress to reconsider, stating that weaknesses in advertising and consumer protection were "arguments for improving regulation, not abandoning it."