Brazil Congressman Pushes for Criminal Penalties Against Illegal Gambling

Brazil’s betting industry has taken big steps forward with regulation, but some lawmakers believe the job is not finished. Congressman Jorge Goetten is now calling for tougher enforcement to tackle unlicensed operators.

Brasília policymakers see promise in the regulated industry but remain wary of the illegal sector that still thrives nationwide. The criminalization proposal reflects pressure to give authorities more effective enforcement tools. Supporters believe that without penalties, compliant operators may be left at a disadvantage while unlicensed businesses continue unchecked.

Good to Know

• Bill 5144/2023 would make it a crime to collect bets or promote unlicensed gambling.
• The Ministry of Finance’s Prizes and Betting Secretariat (SPA) oversees the regulated market.
• Brazil legalized fixed-odds sports betting earlier in 2025, but other gambling reforms are still in Congress.

Goetten met recently with Régis Dudena, who heads the SPA, to push for his bill that seeks to criminalize illegal betting. The measure would target not only the act of taking bets but also any marketing or advertising carried out for operators that don’t hold licenses.

Why Criminalization Is on the Table

The Congressman argues that regulation alone cannot stop black-market competition. Goetten explained:

“Without punishment, the serious operators end up paying for the bad ones, which compromises the credibility and balance of the market.”

His concern is that unlicensed sites will continue to lure bettors and undermine trust in the newly regulated sector.

Brazil has already authorized fixed-odds sports betting this year, but the government is still debating Bill 2.234/22, which would expand legalization further to include casinos, bingo halls, video bingo, horse racing, and even the traditional jogo do bicho.

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