The numbers speak for themselves in Brazil. In 2024, **COAF** received 928 reports of suspicious transactions related to online betting companies and lotteries. In 2025, that figure climbed to 27,600 communications, an increase of nearly 30 times in just twelve months. To understand the magnitude of the change, it is enough to compare with previous years: in 2023, 1,157 reports were recorded and in 2022 the figure was 1,344.
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The main factor behind the increase is not necessarily an equivalent growth in illicit activity, but the implementation of a regulatory framework that, for the first time, obliges betting companies to report to **COAF** when they detect operations with signs of money laundering or other financial crimes. These obligations began to be applied in January 2025, as part of the structuring of the regulated betting market in Brazil.
Why reports skyrocketed after the new regulation in Brazil
The explanation for the jump in notifications has at least two interpretations. The first is the most obvious: before 2025, betting was not formally required to report to COAF, so the vast majority of suspicious transactions simply did not reach the agency. The regulation created a legal obligation that did not exist before, and the numbers reflect it immediately.
The second interpretation is more complex. Fred Justo, AML (Anti-Money Laundering) Director of Legitimuz, pointed out that part of the increase could be interpreted as defensive notifications. «One of the reasons for the increase in mandatory notifications in 2025 could be interpreted as defensive communications from operators who fear sanctions», Justo noted, referring to Article 25 of Ordinance SPA/MF No. 1.143/2024, which requires operators to apply a rigorous analysis of transactions with signs of money laundering.
«Another factor that contributes to this figure may be the inability to identify what is suspected to be money laundering; when they have doubts, they end up reporting everything», the specialist added, describing a dynamic that could artificially inflate statistics without that necessarily implying a real increase in criminal activity.
The financial system as the first line of control
Beyond direct reports from operators, the financial system also plays a central role in the detection of illegal platforms. In 2025, 54 financial and payment entities submitted 1,255 reports to the Secretariat of Prizes and Betting, which allowed for the identification of 265 illegal operators and resulted in the closure of 550 bank accounts.
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However, the process faces structural obstacles. Many companies that operate betting platforms do not use tax identification numbers (CNPJ) explicitly registered under that activity, but operate under other commercial classifications. In some cases, the use of shell companies with previously created CNPJs was detected, which makes automatic tracking by financial institutions difficult and allows certain transactions to escape traditional control systems.
The COAF reinforces its preventive work with banks and fintechs
To close those gaps, COAF is coordinating with banks and financial institutions a more structured preventive work scheme. The agency provides guidance on the types and patterns of transactions that may indicate fraudulent activity linked to betting, a collaboration that previously occurred irregularly and now seeks to be systematized with periodic meetings.
The same strategy was previously applied in emerging sectors such as fintechs and crypto-assets. In the case of virtual assets, the COAF reporting regulation came into force in February 2026, following the same model implemented for betting.
The illegal market still represents 40% of the sector
Despite regulatory progress, market studies indicate that illegal betting companies still represent 40% of the sector in Brazil. The Secretariat of Prizes and Betting of the Ministry of Finance, responsible for regulating and supervising the market, works in parallel with the National Telecommunications Agency (Anatel) to eliminate irregular sites and curb the financial flow of platforms operating outside the legal framework.
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