Central Bank President Calls For Regulation Of Illegal Betting in Brazil

Brazil’s Central Bank is calling for greater regulatory authority over betting activity, particularly when it comes to dealing with unlicensed operators. In a formal address to the Parliamentary Inquiry Commission, Central Bank President Gabriel Galípolo outlined the institution’s current limitations under Brazilian law and argued for expanded oversight powers.

At present, the Central Bank can only notify financial institutions when they should stop accepting bets from unauthorized entities—after being formally advised by the Secretariat of Prizes and Bets (SPA). It cannot independently monitor or penalize any illegal betting transactions.

“I know that the Senators are well aware of this, but it is important to start by highlighting that the Central Bank of Brazil does not have the legal authority to monitor or apply sanctions for transactions involving fixed-odds betting carried out with legal entities that are not authorised to carry out this activity. There is no authority attributed to the Central Bank in Law No. 14,790 of 2023,” Galípolo said.

He went on to clarify that without specific regulation, the Central Bank lacks any role in supervising or sanctioning betting activity. “Without specific regulations for the Central Bank, there is no authority for supervision and sanctioning on our part. Therefore, our activities do not include the control or regulation of specific operations related to fixed-odds betting provided for in the aforementioned law and its subsequent regulation.”

Galípolo also noted that delays in formal legislation from Congress may have allowed the black market to expand. He said this lag in legal clarity has played a part in the continued activity of illegal gambling operators in Brazil.

While the SPA currently oversees which bets are authorized and permitted in the country, Galípolo believes the Central Bank should have a larger role in enforcement and regulation to help address the illegal betting sector more effectively.