At its extraordinary session on May 19, 2026, the Brazilian Federal Court of Accounts (Tribunal de Contas da União – TCU) reviewed the findings of an operational audit assessing the government’s efforts to curb illegal sports online gambling operators in Brazil, including the measures currently used to prevent and combat money laundering in connection with fixed-odds betting on virtual games.
The audit identified a number of structural shortcomings and led the TCU to issue recommendations aimed at strengthening the institutional framework for addressing illegal bets, with a broader role for other public authorities in addition to the Secretariat of Prizes and Betting (Secretaria de Prêmios e Apostas – SPA).
Key Findings
The audit points to a series of deficiencies that undermine both legal certainty in the sector and the effectiveness of enforcement efforts against illegal bets, including the following:
- Limited interagency coordination at the federal level: The audit found no formal or standardized protocols to ensure effective information-sharing regarding illegal bets, weak integration across inspection and enforcement efforts, insufficient clarity as to the powers and responsibilities of the relevant authorities, and no effective mechanisms for joint monitoring and evaluation of the measures adopted.
- Inadequate tools to detect illegal operators: According to the audit, the SPA, which is responsible for regulating and supervising the sector, faces technical and methodological limitations in identifying unauthorized operators on a timely and proactive basis. Overreliance on complaints and reactive searches, delays in identification procedures, and the lack of integration among databases (including those reflecting state authorizations) were identified as critical weaknesses.
- Ineffective blocking and disruption measures: Measures designed to block domains and shut down the bank accounts of illegal operators were described as ineffective and structurally weak. The report states that approximately 40% of the market remains under the control of unauthorized operators, underscoring that the current mechanisms are insufficient to disrupt illegal activity effectively. The ease with which blocking measures may be circumvented (for example, through new domains and VPNs), combined with poor coordination in the timing of control measures, further weakens enforcement efforts.
- Insufficient sanctions framework: The TCU found that the Brazilian sanctions regime applicable to illegal bets and their facilitators (including financial institutions, telecommunications providers, and advertising agents) is insufficient and lacks meaningful deterrent effect. The audit also highlighted the absence of effective criminal liability for facilitators, as well as the lack of mechanisms for asset forfeiture (particularly abroad) and recovery of illicit proceeds.
- Weaknesses in ENCCLA governance and oversight: According to the audit, the National Strategy to Combat Corruption and Money Laundering (Estratégia Nacional de Combate à Corrupção e à Lavagem de Dinheiro – ENCCLA), although an important coordination forum, lacks effective monitoring, performance assessment, and governance mechanisms. Its consensus-based and voluntary-participation model limits its ability to ensure effective and sustainable implementation of recommendations.
Recommended Next Steps
Following the audit, the TCU issued a series of recommendations directed to federal authorities. The TCU’s Specialized Audit Unit for National Defense and Public Security (AudDefesa) will monitor implementation and assess the effectiveness of those measures over the coming months. The table below summarizes certain of the court’s principal recommendations:
| Recommendation | Addressees Responsible Authorities |
Recommended Actions |
| Creation of a permanent interinstitutional coordination mechanism | SPA | Establish a permanent interinstitutional coordination mechanism to combat illegal betting houses, with the participation of the SPA, the National Telecommunications Agency (Anatel), the Central Bank of Brazil (BCB), the Financial Activities Control Council (Coaf), the Brazilian Federal Revenue Service (RFB), and criminal prosecution authorities. It should include formal information-sharing protocols, a clear definition of powers and responsibilities, and procedures/indicators for jointly monitoring the effectiveness of the measures adopted. |
| Improvement of tools for detecting unauthorized betting houses | SPA and Anatel | Improve, in a coordinated manner, the technological tools used to detect unauthorized betting houses. This includes expanding the use of automated solutions, defining unified criteria for classifying irregular operators (with prior verification of state authorizations), and gradually integrating relevant databases (including SIGAP modules and information on blocking measures). |
| Establishment of coordinated procedures for interrupting illegal operations | SPA, Anatel and BCB | Establish coordinated procedures for interrupting illegal online gambling operations, especially standardized workflows to ensure that SPA communications result in the timely blocking of domains by Anatel and guidance from the BCB to regulated institutions, as well as parameters for prioritizing cases with a higher risk of money laundering and reference deadlines for the review and implementation of measures. |
| Strengthening of the sanctions framework applicable to financial and payment institutions | SPA and BCB | Adopt measures, within the scope of their respective powers, to strengthen the sanctions framework applicable to financial and payment institutions that, repeatedly or to a material extent, facilitate illegal online gambling operations. This includes the systematic use of administrative sanctions, improvements to procedures for recovering undue economic gains, and structured information-sharing regarding sanctions imposed. |
| Development and implementation of a computerized system to monitor actions under the National Strategy to Combat Corruption and Money Laundering – ENCCLA | Department of Asset Recovery and International Legal Cooperation of the Ministry of Justice and Public Security (DRCI/MJSP) | Develop and implement a computerized system to monitor ENCCLA’s coordinated actions, with structured records of actions, responsible authorities, deadlines, indication of money laundering risk, and a consolidated view of the progress of initiatives. |
| Preparation of a draft decree or bill to institutionalize ENCCLA | MJSP | Assess the advisability and convenience of preparing a draft decree of the Presidency of the Republic or a bill to be submitted to the National Congress in order to formally institutionalize ENCCLA, defining its legal nature, composition, powers, governance model, and complementary instruments to voluntary coordination that ensure effective cooperation among participating authorities. |
Market Implications and Outlook
The audit reinforces that enforcement against Brazil’s illegal betting market remains fragmented and only partially effective.
More effective action against illegal bets would benefit not only duly licensed operators, which incur significant compliance costs under the Brazilian regulatory framework, but also other market participants, bettors, and the Federal Government itself, which has a direct interest in increased tax collection and more effective market oversight.
In particular, the TCU’s call for a more coordinated and proactive role by other authorities, especially the Central Bank of Brazil and Coaf, may create momentum for more effective action against companies involved in processing payments for illegal bets.
Taken together, the TCU’s recommendations and the Federal Government’s broader efforts to strengthen the regulatory framework, particularly through the SPA, may support more sustainable growth in the Brazilian betting market while promoting safer offerings of betting products and services.
Click here to access the full text of the TCU’s decision (Ruling No. 1296/2026 – Plenary).
TozziniFreire’s Gaming & E-sports team remains available to discuss the implications of the TCU’s decision and to assist clients in assessing and complying with the regulatory requirements applicable to online gambling operations in Brazil.
