Brazil betting ban prompts integrity warnings and legislative pushback
Lawmakers have proposed amendments to preserve sports betting as the government reports a surge in illegal sites.
The International Betting Integrity Association has warned Brazil's ban on online betting will have a "particularly serious" impact on sporting integrity and make match-fixing harder to detect.
The association, which consists largely of betting operators, argues Brazilian sports teams will lose valuable integrity monitoring as the bulk of betting moves offshore.
"If betting moves to operators beyond regulatory reach, the ability to identify suspicious patterns, trace accounts and share intelligence with investigators becomes significantly weaker," the IBIA said.
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It projects about 60% of Brazilian betting spend, around R$25 billion, will head to offshore firms following the ban announced by President Luiz Inácio Lula da Silva on Sept. 25.
In the first full year of regulated sports betting in 2025, the IBIA flagged 25 suspicious alerts in Brazilian sport, compared with an annual average of 11 between 2021 and 2024.
Brazilian lawmakers have now proposed amendments to preserve sports betting as the country's ban on fixed-odds wagering advances.
The deadline for lawmakers to submit amendments to Provisional Measure No. 1.394/2026 expired on Oct. 13.
At least seven lawmakers have proposed removing the prohibition on sports betting while retaining a ban on online casino games.
The joint committee tasked with examining the measure has been appointed, but Congress has yet to announce its leadership or establish a timetable for deliberations.
Congress has until Nov. 23 to deliberate on the measure, which will begin blocking the legislative agenda from Nov. 9 if it remains unresolved.
Discussions are expected to gain momentum after the second round of Brazil's presidential election on Oct. 25.
The legislative process is unfolding alongside the government's preparations to close the regulated betting market.
Brazil's Secretariat of Prizes and Betting published an ordinance setting Dec. 15 as the final date for fixed-odds betting operators to cease activities.
The provisional measure separately provides for the termination of federal betting authorizations on Oct. 25.
Government figures have intensified concerns about the potential expansion of unlicensed gambling following the shutdown of authorized operators.
According to an official report released last week, authorities submitted 13,241 illegal betting websites for blocking in 12 days, an average of about 1,103 per day.
Licensed operators, which paid 30 million reais for their authorizations, are complying with the shutdown schedule, while illegal platforms continue to emerge.
On Oct. 13, Brazil's Official Gazette published an ordinance creating a division within the Federal Police dedicated to combating illegal betting and match-fixing.
The future of the measure also remains uncertain at the Supreme Federal Court, where Justice Luiz Fux has yet to rule on requests to suspend it.
The requests were submitted by organizations representing the betting and communications sectors.
Emanuel Macedo de Medeiros, chief executive officer of the Sport Integrity Global Alliance, remarked that "dismantling the regulated market is not the answer."
"No industry deserves to set its own rules, but the state must act responsibly with evidence and proportionality, and a credible transition," he added.
The IBIA also argues Brazilian law enforcement and regulators will lose access to market data and customer account trails which can help with investigations.
Outside of integrity, the IBIA pointed to sponsorship revenue losses for sports organisations.
Of the 20 clubs in the top-flight Brasilero Serie A, 14 have an active deal with a betting company.
According to Galapagos Capital, an investment company, sponsorship revenue accounts for 24% of clubs' commercial revenue in 2025.
Gross gambling revenue was being taxed at a rate of 13% at the time of Lula's ban, and was set to rise to 18% by 2028.
In the first half of 2025, more than R$8.7 billion in betting taxes was declared.
The election outcome is expected to influence the measure's prospects in Congress as lawmakers weigh proposals to preserve parts of the regulated betting market.