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Brazil’s decision to suspend the regulated betting market has been followed by a sharp increase in the number of illegal gambling websites operating in the country.

According to monitoring platform Bet Legal, 428 new illegal betting sites appeared in Brazil between September 25 and September 27, just days after President Luiz Inácio Lula da Silva signed Provisional Measure No. 1,394/2026, which prohibits fixed-odds betting and online gambling.

The figures were reported by BNLData and have also been cited by other industry publications.

Lula’s Measure Ends Brazil’s Regulated Betting Market

On September 25, Lula signed a provisional measure banning the operation, offering, intermediation and advertising of fixed-odds betting throughout Brazil.

The measure covers both sports betting and online games, including online casino products. It also applies to state and district authorizations, while existing lottery products specifically authorized by law are excluded.

Licensed operators were given until October 5 to allow customers to withdraw remaining balances and remove betting advertising and sponsorship materials. From October 6, betting websites and applications are scheduled to be taken offline.

The measure is provisional and will require consideration by Congress.

428 Illegal Sites Appeared Within Three Days

The first market reaction has been particularly visible in the number of newly detected unauthorized websites.

Bet Legal recorded 428 new illegal betting sites between September 25 and September 27. That represents an average of approximately 143 new sites per day during the three-day period.

For comparison, monitoring data cited by industry sources indicated an average of around 62 new illegal sites per day between September 21 and 24, while the average between June 1 and August 31 was approximately 13.7 sites per day.

The figures suggest that the transition away from the regulated market has been accompanied by a rapid expansion of unauthorized betting offers.

Brazilian Authorities Are Already Blocking Illegal Platforms

The government has also stepped up enforcement against unauthorized operators.

Brazil’s Ministries of Justice and Public Security and Finance announced on September 27 that a joint task force had identified and taken action against 506 websites suspected of illegally offering betting services.

The operation involves the Secretariat of Prizes and Betting, the Federal Revenue Service, Federal Police, consumer authorities and other government bodies. Officials also reported finding betting advertising on platforms including Meta and Google after the prohibition entered into force.

The government says it has already blocked more than 60,000 betting-related pages since 2024 using monitoring and tracking tools.

Government Sets October Deadline for Betting Shutdown

The ban is being implemented through a defined transition period.

Licensed operators can no longer accept new deposits following the publication of the provisional measure. Players have until October 5 at 23:59 to withdraw their remaining funds.

From October 6, betting websites and applications are scheduled to be blocked. Operators must then provide financial institutions with information about outstanding customer balances, while banks will handle the return of those funds.

The government has also warned that funds connected to illegal betting operations could be tracked and confiscated.

Industry Warns of Migration to the Black Market

The rapid increase in unauthorized sites has prompted concern among representatives of Brazil’s regulated betting industry.

Plinio Lemos Jorge, president of the National Association of Games and Lotteries of Brazil (ANJL), said the growth of illegal platforms was expected because unauthorized operators could use the ban to attract customers who previously used licensed businesses.

The association has argued that removing licensed operators could push a significant number of Brazilian bettors toward platforms operating outside the country’s regulatory framework.

These are industry estimates rather than independently established measurements, and the eventual size of any migration will depend on how effectively authorities enforce the ban.

The Challenge of Enforcing a Nationwide Ban

The emergence of hundreds of new websites highlights the practical challenge facing Brazilian authorities.

Unlike licensed operators, unauthorized websites can change domains, use mirror sites and rely on offshore infrastructure. Blocking individual domains therefore does not necessarily prevent the same operator from returning under a different web address.

Brazilian officials say their enforcement strategy will go beyond website blocking. According to Finance Minister Dario Durigan, authorities intend to track financial flows associated with illegal operators and work with financial institutions and telecommunications companies.

The government is also considering stronger criminal penalties for operating online betting services and measures targeting the use of criminal proceeds in the betting sector.

What Happens to Brazil’s Betting Market Next?

The 428 newly detected websites provide an early indication of how quickly unauthorized operators can respond to regulatory changes.

At the same time, the government’s enforcement campaign shows that authorities are actively attempting to prevent illegal platforms from filling the space left by licensed operators.

The next stage will depend on the implementation of the provisional measure, its consideration by Congress and the effectiveness of measures targeting websites, payment channels and advertising.

For Brazil’s gambling market, the central issue is now whether the prohibition can significantly reduce betting activity or whether a substantial share of demand will move toward platforms outside the country’s regulatory framework.

Source: https://bnldata.com.br/lula-proibe-as-bets-e-o-mercado-clandestino-agradece-428-sites-ilegais-em-tres-dias/