JandSms reporter Jabari reported on January 12, 2026: Brazil's gambling industry continues to see stricter regulations. According to an official announcement from the Secretariat for Bonuses and Betting Affairs (SPA-MF) of the Brazilian Ministry of Finance, the country has formally extended its cooperation agreement with the Brazilian Digital Commission to strengthen its crackdown on illegal gambling. Simultaneously, a series of tightening measures covering tax rate adjustments, qualification verification, and user protection have been implemented, marking the beginning of a more refined regulatory cycle for the Brazilian gambling market.
It is understood that the cooperation agreement between SPA and the Brazilian Digital Commission was originally scheduled to expire on December 31, 2025. The two parties signed a supplementary agreement on December 30, 2025, extending the cooperation period to June 30, 2026. This collaboration continues the "enforcement + technology" linkage model. SPA is responsible for core regulatory work such as license qualification verification and tax rate determination, while the Brazilian Digital Commission leads digital platform inspections and advertising compliance monitoring. Both parties share a blacklist of violating companies, achieving a regulatory effect of "one violation, restrictions across the entire network." Notably, major platforms such as Google, Meta, and TikTok are all members of this digital committee and have completed regulatory interface access under the cooperation framework, enabling the removal of illegal gambling content within 72 hours. Statistics show that over 5,000 pieces of illegal betting promotion content have been removed during the first round of cooperation.
Regarding core regulatory measures, Brazil has launched a comprehensive approach covering advertising, qualifications, taxation, and user protection. In terms of advertising regulation, a "zero-tolerance" campaign against illegal gambling advertising has been launched, comprehensively prohibiting illegal gambling promotions on social media, in-game platforms, and short video platforms, with a focus on investigating illegal promotions disguised as "e-sports sponsorship" or "game benefits." Technically, an AI monitoring system has been activated to intercept gambling keyword content in real time. Violating platforms will face fines of 5%-10% of their revenue, and those with serious offenses will have their network operation licenses revoked.
Qualification reviews and tax adjustments are being tightened simultaneously. The Brazilian government requires all existing licensed betting companies to undergo a recertification process by March 31, 2026. The recertification will focus on the source of funds, the establishment of anti-money laundering systems, and mechanisms for protecting minors. Companies must also submit monthly audited and certified user data and transaction records to the SPA (Special Purpose Company). Regarding taxation, President Lula has signed Supplementary Law 224, outlining a phased increase in the gross gaming revenue (GGR) tax rate from 2026 to 2028: the sports betting tax rate will gradually increase from the current 18% to 28% in 2028, and the online entertainment betting tax rate will rise from 20% to 30%. The increased tax revenue will be specifically used for esports venue construction, youth sports education, and intervention for gambling addiction.
User protection is a key focus of this regulatory upgrade. The new regulations mandate that betting platforms set daily betting limits for users and provide a 1-5 year "self-service anti-gambling" channel. Registration requires both facial recognition and CPF (Consumer Taxpayer Registration) verification to prevent minors from participating at the source. Meanwhile, SPA has established a consumer rights hotline for gambling, promising a clear response to user complaints within seven working days.
This tightening of regulations is driven by the long-standing illegal and chaotic state of Brazil's gambling industry. Yield Sec data shows that in the first half of 2025, the GGR of Brazil's illegal gambling market reached 18.1 billion reais, accounting for 51% of the overall market, far exceeding the legal market's 17.4 billion reais, resulting in a tax revenue loss of 4.62 billion reais in the first half of the year alone. Furthermore, surveys show that 61% of Brazilian bettors have used illegal platforms, and 78% of respondents could not distinguish between legal and illegal gambling websites. Against this backdrop, the Brazilian government is drawing on the regulatory experience of the EU and the US to promote market standardization, while simultaneously adjusting tax revenue to fill the fiscal gap and reduce the incidence of social problems such as gambling addiction and family disputes.
The industry has responded positively. Esportes Gaming Brasil, which owns licensed brands such as Esportes da Sorte, has officially joined the Brazilian Interactive Advertising Agency (IAB Brasil), pledging to strictly adhere to the "Guidelines for Digital Advertising in Sports Betting" released in August 2025, focusing on compliant marketing and consumer education. Hugo Bowen Gartner, Executive Director of Institutional Relations and Strategic Partnerships at the company, stated, "In a regulatory environment, advertising is not only a business activity, but more importantly, it helps consumers identify legitimate and safe platforms."
Analysts believe that in the short term, small and medium-sized illegal gambling platforms will accelerate their exit from the market, and increased compliance costs for licensed companies may lead to a temporary contraction in their business. However, in the long term, stricter regulations will optimize the market competition landscape, with leading licensed companies expected to capture more market share. Simultaneously, the collaboration between legal gambling and the esports industry will become healthier. With the implementation of these measures, the Brazilian gambling market is expected to gradually transform from a "traffic competition" model to a "compliance and trust-driven" model.