Finance Minister Fernando Haddad is turning up the heat on Brazil’s unregulated betting scene. In the coming weeks, he’ll present President Luiz Inácio Lula da Silva with a detailed report exposing the risks of illegal sports betting operations, many of which are tied to fintechs operating under the radar.
“These platforms are moving billions without supervision,” Haddad said. “It’s not just about tax loss. It’s about protecting people.”
The move follows Brazil’s 2025 rollout of a legal betting framework—but illegal platforms haven’t gone away. According to insiders, some use e-wallets and digital banks to bypass regulation, while advertising freely across social media, streaming platforms, and even football jerseys.
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Haddad reportedly wants Lula’s green light to tighten ad regulations, reinforce Central Bank cooperation, and involve Senacon to shield vulnerable groups like Bolsa Família recipients from exploitative schemes.
Brazil to Restrict Use of Social Benefits for Gambling
“This is about public health, not just money,” said Haddad, comparing the industry to tobacco and alcohol. He suggests stricter oversight and the possible ban of bets targeting low-income users. The Brazilian betting boom has attracted global operators, but Haddad’s position signals a clear warning: play by the rules or prepare for shutdown.
With the report expected to land on Lula’s desk soon, Brazil’s gaming industry may be facing its most aggressive compliance wave yet.
