World Cup exposes offensive against betting with a mix of oversight and electioneering.
The World Cup spurred an offensive by Brazilian authorities against digital betting platforms, exposing both legitimate oversight actions and electioneering speeches by politicians across the spectrum. Four out of ten Brazilians placed bets during the tournament, according to a survey by the fintech company Klavi, using data from the 187 legalized betting sites in the country.
The article ' Authorities tighten the net on betting while politicians bet on electoral demagoguery ' published by VEJA this week shows that the crackdown on betting mixes effective initiatives with demagogic moves, with the potential to generate electoral noise without relevant practical effects. In the first three rounds of the championship, R$ 780 million was deposited in bets on match results, scores, and the number of yellow cards. In the game between Brazil and Morocco, the average expenditure per bettor reached R$ 524, according to data from Klavi.
Federal operation and weak oversight.
On Monday (July 6), the Federal Police launched an operation against 87 companies used by clandestine websites for money laundering and sending funds abroad. The action was made possible after the Prizes and Betting Secretariat (SPA), linked to the Ministry of Finance, tracked more than a dozen unauthorized platforms. A government mapping identified 300 operators and about 40 institutions with possible links to criminal organizations.
The structural weakness of the oversight system had been pointed out by the Federal Court of Accounts (TCU). The Court found that, in mid-2025, only three SPA (Special Secretariat for the Promotion of Gambling) employees were responsible for monitoring all betting transactions, identifying suspicious operations, and cataloging irregularities. In response, the Ministry of Finance developed a data cross-referencing system that allowed the Council for the Control of Financial Activities (Coaf) to issue more than 20 alerts in two months regarding illegal betting. Simultaneously, the Federal Revenue Service requested the blocking of suspicious bank accounts, and the National Telecommunications Agency (Anatel) took down websites linked to illegal gambling.
Between 2024 and mid-2025, SPA opened 455 cases against illegal platforms. However, the TCU itself classified the effort as insufficient. An audit accessed by VEJA concluded that between 41% and 51% of the market remains in the hands of unauthorized operators, who move between R$ 26 billion and R$ 40 billion per year. The document points out that the 21.842 domain blocks and 483 bank account closures carried out so far "demonstrate ineffectiveness that reduces the perception of risk on the part of criminals"; it recommended that the federal government increase the budget of oversight bodies and toughen penalties.
Electoral hypocrisy at the heart of the debate.
The electoral landscape has turned betting into a platform for speeches from all sides. A survey by AtlasIntel recorded that 86% of the Brazilian population believes that digital betting causes social harm, a fact that has encouraged politicians to take a public stance against the sector.
President Lula declared himself in favor of ending gambling, which he said provides "no useful service" to the country, adding that "the casino is inside your house." Gambling was legalized by Michel Temer, expanded its operations under Jair Bolsonaro's government, and was regulated by Lula in 2023. According to the source text, the sector generated R$ 33 billion in taxes for the government in 2025 alone.
Former Finance Minister Fernando Haddad, the PT candidate for governor of São Paulo, followed the same line. On Wednesday (July 8), Haddad posted on his social media that "betting is a scandal in Brazil" and stated that the business "grew freely and created a problem that today affects millions of Brazilian families." VEJA highlights that Haddad himself coordinated the process of regulating betting under Lula's approval; "this is a crisis that the Lula government inherited and confronted," the PT member added.
The opposition also used the issue as ammunition. Senator Flávio Bolsonaro directly linked Lula to the problem; “He regulated betting sites. The result is there. A lot of people are deluding themselves, thinking they're going to make money betting, spending even what they don't have, and in the end, losing everything,” he declared. Deputy Aécio Neves (PSDB-MG) presented a bill to prohibit betting advertising throughout the country. The National Consumer Secretariat opened an investigation against CazéTV for alleged abusive advertising of betting during World Cup broadcasts. The company, which holds the broadcasting rights for the tournament, denied having aired misleading advertising or suggesting betting as a form of investment.
Challenges beyond borders
The problem is not unique to Brazil. The United Kingdom announced that gamblers who wager more than £1.000 (approximately R$7.000) in less than 24 hours will receive immediate risk alerts. In Australia, a government study indicated that the population loses almost R$90 billion per year on online gambling, the highest per capita rate in the world, according to the survey.
