Brazil Blocks Over 13,000 Illegal Betting Sites, Freezing R$1.3 Billion in Accounts Following Online Gambling Ban

Since the prohibition of illegal online betting in Brazil took effect on September 25, the government has blocked 13,241 unlawful betting websites. This aggressive crackdown led to a significant financial impact, with approximately R$1.325 billion still held in betting accounts belonging to around 26.5 million bettors. The ban, enacted through MP 1.394/2026 and awaiting Congressional approval, has halted daily illegal betting transactions that once averaged between R$600 million and R$650 million, amounting to R$6.5 billion lost in betting activities over just 10 days.

The enforcement operation also involved shutting down thousands of social media accounts promoting illegal betting, affecting over 17 million users. Among the frozen funds, roughly 1% of bettors hold nearly 80% of the pending refunds, reflecting a concentration of large balances. Investigations by Polícia Federal are focusing on at least 40 to 446 accounts with balances exceeding R$100,000, scrutinizing them for money laundering and possible links to criminal organizations.

Financial institutions must return funds to users by mid-October while retaining documentation on balances and withdrawal requests. Eduardo Moreira, founder of ICL Notícias, described the scale of the ban’s effect as akin to a "pandemic" given the number of affected accounts, suggesting it has liberated about 100 million Brazilians from harmful gambling habits. Meanwhile, the government continues to pursue the blocking of the sole remaining authorized betting site preceding the ban, reinforcing its commitment to combating illegal online gambling.