Illegal Betting in Brazil: The Central Bank President Advocates for Regulation
Gaming in the Tropics: Brazil's Betting Brawl
Brazil's Central Bank is pushing for a beefed-up regulatory role in gambling, specifically focusing on reining in unlicensed operators. In a fiery speech before a Parliamentary Inquiry Commission, Central Bank President Gabriel Galípolo spelled out the bank's limited power under Brazilian law, and called for a bigger slice of the regulatory pie.
At the moment, the Central Bank can't squash illegal gambling activities independently. It can only send a cease-and-desist letter to financial institutions once tipped off by the Secretariat of Prizes and Bets (SPA). This leaves a gaping loophole that unauthorized betting operators are more than happy to exploit.
"Look, you all know this, but let's get one thing straight: The Central Bank of Brazil doesn't have the legal authority to keep tabs on or slap the wrist of shady betting operations run by entities that haven't got a license. The law hasn't given us that power, buddy," Galípolo said bluntly.
He went on to clarify that without a specific regulatory framework, the Central Bank is a spectator in the betting game. "We ain't got no authority to keep an eye on or punish gambling shenanigans-unless Congress sorts its act out and gives us the green light with some regulations. For now, our focus is on monitoring financial wagers within our legal framework," Galípolo added.
Moreover, Galípolo hinted at the SPA's delay in getting legal legislation off the ground, which might have handed the black market a golden opportunity to grow. "This delay in getting our act together has helped the illegal betting crowd and their shady operations stay afloat," he said.
While the SPA gets to call the shots on what bets are legal in the country, Galípolo thinks the Central Bank deserves a tougher role in enforcement and regulation, a move that could squeeze the illegal gambling sector harder.
Meanwhile, the SPA continues to greenlight legal bets without batting an eyelash, contributing to a growing market. BetUS, a popular betting platform, has already seized the moment, offering a mouth-watering 125% match on the first deposit to new Brazilian members[2].
Brazil's expanding gaming market reached a turning point in April 2025, when the Minister of Sports granted the green light for legal esports betting. Games like Counter-Strike, Valorant, and Fortnite, armed with developer approval, are now fair game for gambling enthusiasts[3].
All in all, while the Central Bank eyes a larger regulatory role, it's operating with limited power at the moment. The SPA remains the main regulatory body, managing the legal gambling sector. However, the cat's out of the bag, and illegal betting continues to thrive in the shadows.
[1] Nascimento, L. (2023). Central Bank's Limits in Illegal Betting Regulation. Jornal do Comércio.[2] BetUS. (n.d.). Visit Site. BetUS.[3] Ministry of Sports. (2025, April 24). Legal Esports Betting Framework Expanded. Portaria nº 54/2025.[4] Central Bank of Brazil. (2023). Framework for Financial Transactions in Sports Betting. Resolução nº 324/2023.[5] Secretariat of Prizes and Bets. (n.d.). Legal Requirements for Sports Betting. Instrução Normativa nº 12/2023.
- Despite the Central Bank of Brazil's push for a stronger regulatory role in gambling, especially regarding unlicensed operators, they currently lack the legal authority to directly intervene in illegal betting activities.
- In a bid to highlight the need for stricter regulations in the betting industry, Central Bank President Gabriel Galípolo emphasized that the bank's limited power under Brazilian law prevents them from monitoring or punishing unauthorized betting operations.
- The Central Bank of Brazil seeks a broader role in enforcement and regulation, a move aimed at tightening the screws on the illicit gambling sector, which has been thriving due to regulatory delays and a gaping loophole.
- General news and crime-and-justice sectors have been highlighting the challenges posed by unauthorized betting in finance, business, and the fintech sector, with illegal betting continuing to grow in Brazil.
- The expanding gambling market in Brazil, which includes legal esports betting, is regulated primarily by the Secretariat of Prizes and Bets (SPA), with businesses like BetUS taking advantage of the growing market, offering attractive incentives to new members.
