Brazil’s Ministry of Finance has taken a significant step towards the full regulation of the online betting industry by opening a public consultation focused specifically on game providers. The Secretariat of Prizes and Bets (SPA/MF) published on January 30 in the Official Gazette of the Union the call to gather information and collaboration aimed at developing the Regulation on the Recognition of the Operational Capacity of Fixed-Odds Betting Providers.
This initiative represents an effort to complete the regulatory framework, which currently has a critical gap in the segment of software and technological platform providers, while betting operators and platforms already have defined regulations from previous implementations.
The measure was signed by Daniele Cardoso, interim secretary of Prizes and Bets, who assumed this position after the appointment of Regis Dudena as head of the Secretariat of Economic Reforms (SRE-MF) on January 29.
Timeline and citizen participation mechanisms
The official public consultation period will run from February 4 to March 23, 2026, offering a period of approximately seven weeks for industry players, experts, organizations, and the general public to contribute their perspectives on the proposed regulation.
Participation is open to both natural and legal persons, without restrictions on nationality or geographical location, although the main contributors are expected to be technology companies, game software developers, betting operators, industry associations, and consultants specializing in gambling regulation.
The designated mechanism for receiving proposals is the Brazil Participativo Portal, a centralized government platform for public consultation processes. Interested parties must access the section titled “Recognition of the technical and operational capacity of service providers for betting operators” to submit their comments and recommendations.
Regulatory framework for the analysis of received proposals
The process of evaluating citizen contributions will follow the guidelines established in article 31, sole paragraph, of Decree No. 12.002, which grants the SPA methodological flexibility in processing the information received while maintaining transparency commitments.
According to this legal framework, the Secretariat will not be obliged to comment on or individually consider each proposal submitted, which is practical considering that similar processes in other countries have generated hundreds or even thousands of contributions. Instead, the authority may group proposals according to their thematic relevance, facilitating a systematic analysis of recurring themes and shared concerns.
The decree also authorizes the SPA to eliminate repetitive proposals or those whose content is unrelated to the topic under analysis, optimizing the resources allocated to the review process. Additionally, the entity may analyze contributions without presenting immediate definitive conclusions, suggesting that the regulatory process may extend beyond the closing of the consultation.
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However, there is an explicit obligation to publicly disclose the content of the analysis conducted through active transparency, ensuring that participants and the general public can know how the different perspectives presented were considered.
Figures reveal the magnitude of the illegal betting market in Brazil
The dimension of the problem is reflected in the statistics of restrictive measures applied. Solely during 2025, the Secretariat of Prizes and Bets blocked more than 25,000 websites offering illegal betting services in Brazilian territory.
This extraordinary figure, representing an average of approximately 70 blocked sites daily, highlights both the proliferation of the black market and the significant resources that authorities must allocate to oversight and enforcement activities.
Industry analysts estimate that the illegal online betting market in Brazil moves between $8 billion and $12 billion annually, representing between 40% and 50% of the total betting activity in the country. This substantial proportion of the market operating outside the legal framework implies estimated annual tax losses of $2 billion for the public treasury.
Expected impact on the Brazilian betting industry
The implementation of regulations for providers could have multiple effects on the Brazilian betting ecosystem. In the short term, a reduction in the supply available to illegal operators is anticipated, as reputable international providers typically avoid regulatory and reputational risks associated with serving unauthorized markets.
This dynamic could accelerate the migration of players from illegal platforms to authorized operators, increasing the sector’s taxable base and improving consumer protection. Preliminary estimates suggest that effective regulation of providers could reduce the illegal market by 20% to 30% during the first year of implementation.
For international providers already operating in Brazil, the new regulation will entail additional compliance costs but will also offer legal certainty and formal access to the Brazilian market, which is projected to reach $25 billion in total betting volume by 2027.
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