Brazil targets payment companies in crackdown on illegal betting

Brazil’s government has launched a sweeping investigation into payment institutions suspected of facilitating transactions for unauthorised sports betting sites.

The Secretariat of Prizes and Bets (SPA), working closely with the Central Bank and the Federal Revenue Service, is leading the effort to disrupt financial flows that support unlicensed gambling platforms operating in the country.

These payment companies, often functioning as digital wallets and transfer platforms, have enabled funds to circulate between bettors and illegal operators. This is even as Brazil’s new gambling law requires all betting establishments to be headquartered domestically and hold federal authorisation.

Despite the regulatory overhaul at the end of 2023, many offshore platforms remain accessible to Brazilian users through VPNs and alternative links.

The government’s investigation aims to identify the financial institutions involved and map out the payment routes used to bypass official oversight.

Authorities are particularly concerned about the risk of money laundering, as the current system allows for untraceable financial movements by criminal groups.

Some payment providers have already ceased servicing unauthorised operators following initial warnings and enforcement actions.

Ongoing monitoring is planned to ensure these channels do not reopen. The government’s goal is to finalise comprehensive regulations by the end of 2025, setting stringent requirements for both platforms and payment methods to ensure transparency and compliance.

The regulatory landscape for esports betting in Brazil has shifted dramatically in 2025.

Recent updates to the law now permit fixed-odds betting on a broad array of esports tournaments, provided organisers secure the necessary licenses or authorisation from game developers or intellectual property holders.

This change marks a departure from previous rules that limited legal betting to games recognised by the International Olympic Committee, opening the door for popular titles like Counter-Strike, VALORANT and Fortnite.

The new regulations also prohibit exclusivity deals, ensuring a competitive market where no single operator or developer can dominate.

Strict safeguards remain in place to protect minors and uphold integrity, but for the first time, Brazilian fans can legally place bets on their favorite esports teams and events.

This regulatory overhaul positions Brazil as a major player in both traditional and digital betting markets, with ongoing government efforts aimed at ensuring that all payment flows supporting esports and sports betting operate within the bounds of the law