ANJL President Calls for Unrelenting Action on Illegal Betting as Brazil’s Regulated Market Hits Record Tax Revenues

Key Takeaways

• Revenue Leap: Tax collections from sports betting and online gaming climbed from BRL3.1 billion ($620 million) in the first five months of 2025 to BRL5.89 billion in the same period of 2026.
• Illegal Market Share: Unauthorized sites still account for nearly half the Brazilian market and risk expanding if tax hikes or advertising limits undermine licensed operators.
• Coordinated Enforcement: Authorities have blocked 56,000 illegal platforms, frozen BRL951.1 million ($190.22 million) in one Federal Police operation, and formed a 15-member task force under Administrative Order No. 2,126.
• Fragmentation Risk: Municipal advertising bans in cities including Rio de Janeiro, João Pessoa, and potentially São Paulo conflict with federal authority under Constitution Article 22.

ANJL President Plínio Lemos Jorge has urged Brazil not to ease its crackdown on illegal betting platforms, even as the regulated sector delivered sharp tax revenue growth in the first half of 2026. The warning comes after the first World Cup played under full regulation, which Lemos Jorge credits with drawing fans to responsible, licensed operators.

According to an extensive interview with iGaming Business, the regulated market’s progress is evident in the numbers. Tax revenue rose from BRL3.1 billion between January and May 2025 to BRL5.89 billion in the comparable 2026 period. Lemos Jorge described this jump as confirmation of the legalized sector’s economic and social value, with tax contributions flowing back to Brazilian society.

World Cup Delivers Revenue Boost and Responsible Activation Examples

Lemos Jorge expects June figures, still unreleased by the Federal Revenue Service, to show a clear World Cup lift. It was the first tournament conducted with Brazil’s market already regulated under Law No. 14,790/2023. Brazilian passion for football met licensed platforms that followed strict integrity, advertising, and communication rules.

The Secretariat of Prizes and Bets (SPA) issued Technical Note No. 3620 one week before kickoff, reinforcing those obligations. Authorized operators responded with in-person activations at bars and restaurants, fan kits, and other experiences that extended digital brands beyond the screen. These efforts, Lemos Jorge told iGaming Business, fostered genuine consumer connections while adhering to the regulatory framework.

A separate iGaming Business report on related government activity underscores the same emphasis on responsibility. Finance Minister Dario Durigan presented data to Supreme Federal Court President Justice Edson Fachin showing nearly 1 million self-exclusion registrations and 85 authorised operators. The regulated sector’s performance during the tournament appears to have met the high bar set by SPA oversight.

New Federal Advertising Rules Viewed as Protective Layer

Lemos Jorge welcomed the government’s fresh advertising regulations as an additional safeguard for bettors and operators alike. The measures, developed with input from ANJL, the Brazilian Institute for Responsible Gambling, and the National Council for Advertising Self-Regulation (Conar), introduce mandatory elements that promote transparency and balance.

He contrasted this federal approach with municipal initiatives. Cities including Rio de Janeiro and João Pessoa have moved to ban advertising in public spaces, with São Paulo and others considering similar steps. Lemos Jorge called these moves major legal misconceptions. Constitution Article 22 reserves commercial advertising legislation exclusively to the federal government, he noted. Divergent local rules across 26 states, the Federal District, and more than 5,000 municipalities would create legislative confusion and unprecedented legal uncertainty for operators.

Judiciary and Executive Intensify Joint Pressure on Illicit Operations

The ANJL leader’s call to maintain vigilance aligns with visible government and court actions detailed across multiple iGaming Business reports. On 15 July, Justice Fachin met with Minister Durigan to discuss combating illegal platforms, improving regulation, and pending court cases. Durigan requested that the Supreme Federal Court uphold decisions blocking municipal authorizations and state-level national licenses.

Fachin signaled that trials on key lawsuits, including Direct Unconstitutionality Actions ADI No. 7721, 7723, and 7749, will advance in the second half of 2026. These cases examine consumer protection, mental health impacts, advertising to minors, and the constitutionality of current regulations. Separately, the Federal Police launched Operation Slots in July, freezing assets and funds up to BRL951.1 million ($190.22 million) linked to suspected money laundering through unauthorized betting sites tied to drug trafficking.

That operation, the third in July with SPA technical support, executed 14 search and seizure warrants and two temporary arrest warrants across six states. Platforms had counterfeited Sigap and Conar symbols to feign legitimacy. Justice Fachin has publicly warned that organised crime uses these illegal betting operations to move illicit funds via crypto-assets and shell companies.

The Ministry of Finance has also created a task force under Administrative Order No. 2,126 to bring transparency to the licensing process. The 15-member group has 120 days to identify and redact sensitive data before publishing SPA proceedings, with disclosure scheduled after the October elections.

Election Scapegoating and Municipal Fragmentation Threaten Momentum

Lemos Jorge anticipates intensified political pressure on betting companies during the second half of 2026 as elections loom. Candidates have singled out the sector as a scapegoat, a pattern he says has persisted since the start of the year. The industry must remain resilient and committed to responsible gaming. Once this turbulent period passes, he predicts the market will face less criticism as it becomes further embedded in Brazilian daily life.

A differentiated reading of the combined coverage reveals an underemphasized tension. While enforcement actions and revenue figures receive prominent attention, the reporting gives less weight to how fragmented municipal policies could raise compliance costs for licensed operators and inadvertently expand the illegal market’s nearly 50 percent share. If advertising restrictions or potential tax adjustments render the formal market less viable, the impressive post-World Cup trajectory could stall precisely when tax contributions are proving most valuable to society.

The coverage also stops short of detailing operational strategies licensed operators must adopt to navigate this mixed federal-municipal landscape while maintaining the consumer trust built during the World Cup.

Where the Risk Lies for Long-Term Regulated Growth

The structural risk is clear: municipal overreach and election-year rhetoric could combine to erode the very sustainability that has driven tax revenue from BRL3.1 billion to BRL5.89 billion. Illegal operators, already using sophisticated concealment tactics, stand ready to absorb displaced activity.

For operators and investors, the message is to treat regulatory coherence as a core planning input. Continued investment in responsible practices, engagement with self-regulatory bodies such as ANJL and Conar, and close monitoring of Supreme Federal Court rulings on the pending ADIs will be essential. The government’s stated zero-tolerance policy toward illegal sites, backed by police operations and judicial coordination, provides a foundation. Preserving the post-World Cup momentum now depends on preventing that foundation from being undermined by inconsistent local rules.

Brazil has demonstrated that a regulated market can deliver substantial fiscal benefits and responsible entertainment. Maintaining that progress requires uniform federal leadership that keeps illegal operators on the defensive rather than allowing them to regain ground. Operators should view the current inflection point as a prompt to strengthen compliance infrastructure and consumer safeguards ahead of expected stabilization after the October elections. For those navigating Latin American market entry, consistent engagement with evolving federal frameworks remains the surest path to sustainable participation.