Brazil lawmaker slams data gap on illegal betting
Table of contents
- Brazilian Deputy Julio Lopes has called the absence of official government data on the size of the illegal gambling market “absurd”.
- The SPA puts up to 70% of bets in the legal market, yet industry groups say piracy still accounts for roughly half of all activity.
- The SPA has confirmed it is entering a cooperation agreement with economic research institute Ipea to produce official market indicators, with the work plan expected to be formalised in 2026.
Brazil’s parliamentary commission on piracy and organised crime heard sharp criticism of government data practices, as lawmakers and industry representatives clashed over how much of the country’s online betting market remains outside the regulated framework.
The data divide
Deputy Julio Lopes labelled the absence of official data on the illegal gambling market “absurd” at the hearing, which examined piracy in the online betting market. The Brazilian Chamber of Deputies established the commission in March 2026.
Leandro Lucchesi, General Regulation Coordinator of SPA, told the commission that estimates suggest up to 70% of bets may already sit within the legal market. Industry associations countered that piracy still dominates roughly half of all activity.
Julio Lopes, deputy, Brazilian Chamber of Deputies, said:
“I honestly think it is absurd that there is such a large discrepancy between the government’s view and yours regarding illegality. It would be important for you to come together so that we have a data point closer to reality.”
Lopes added the difference represents billions of reais. He described it as “unbelievable” that the precise scale of the problem remains unknown in a market as professionalised as Brazil’s.
Lucchesi acknowledged the SPA does not officially validate the figures presented, as they derive from private consultancies.
Leandro Lucchesi, General Regulation Coordinator, SPA, said:
“SPA, in fact, does not endorse any of these indicators. SPA is entering into a technical cooperation agreement with Ipea [Institute of Applied Economic Research] to obtain this indicator, among others.”
He confirmed the work plan is expected to be formalised within 2026.
Counting the cost
Letícia Ferraz, Executive Director of the Laboratory of Human Rights and New Technologies (LabSul), presented figures illustrating the fiscal impact of the unregulated segment.
The legal market grossed R$37 billion in 2025 and generated R$9.9 billion in tax revenues tied to public policies. The illegal market, by her estimates, moves between R$26 billion and R$40 billion annually.
Letícia Ferraz, Executive Director, LabSul, said:
“We are losing between R$ 7 billion and R$ 10 billion annually that could be transformed into public policies.”
Ferraz put forward several recommendations to address the problem. These included a competitive tax environment, passage of anti-illegal market legislation PL 4044/25, a distinctive seal for licensed operators, and closer involvement of the Central Bank and financial intelligence unit Coaf in monitoring the financial system.
This debate lands against a backdrop of growing regulated revenues, with federal tax receipts from betting rising 47% year-on-year in February 2026.
Pix payments and enforcement limits
Ana Bárbara Teixeira, Member of the Advisory Council of the International Gaming Association (Aigaming), identified the payments system as the most problematic channel for illegal operators.
She noted that unlicensed platforms continue to process transactions through Pix and proposed giving licensed operators access to the Central Bank’s fraudster list to strengthen anti-money-laundering controls.
Gianluca Fiorentini, Compliance Manager at the National Telecommunications Agency (Anatel), outlined the structural limits on site-blocking. The agency executes orders issued by the SPA but cannot act independently to remove content.
Gianluca Fiorentini, Compliance Manager, Anatel, said:
“Anatel does not have factual-legal means to remove content on its own. It does not have the authority for that.”
Fiorentini and Witoldo Hendrich Júnior, president of the Brazilian Association of Games and Lotteries (Abrajogo), also highlighted the technical sophistication of illegal operators — including geo-masking tools and domains that rotate within minutes to evade blocks.
Hendrich Júnior warned that proposals to raise taxes or further restrict advertising risk compounding the enforcement challenge by pushing bettors toward unlicensed platforms.
Witoldo Hendrich Júnior, president, Abrajogo, said:
“Excess is pushing players, and ultimately society, into piracy.”
With the SPA-Ipea measurement framework still in development, Brazil’s regulators face mounting pressure to produce credible market data.
The outcome will shape enforcement priorities, tax policy, and the legislative agenda around financial institution accountability for the remainder of 2026.
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