Brazil to deploy consumer watchdogs against illegal betting operators

Brazil’s consumer protection authority is preparing a new enforcement tool aimed at strengthening the country’s response to illegal betting platforms, with local watchdogs expected to play a central role.

The initiative, led by the National Consumer Secretariat (Senacon), will involve the creation of a monitoring laboratory designed to help Procons, Brazil’s state and municipal consumer protection agencies, identify unlicensed betting operators and escalate cases to federal regulators.

Procons function as frontline consumer watchdogs across Brazil, handling complaints, enforcing consumer rights and overseeing compliance in local markets. Under the new plan, these agencies will be equipped with practical tools to detect illegal betting activity across websites, apps and social media platforms.

According to Senacon secretary Ricardo Morishita Wada, the lab is in its final stages of development and will focus on identifying irregular operators and facilitating their removal. The information gathered will be shared with the Secretariat of Prizes and Betting, which is responsible for regulatory enforcement.

“We know there is a need to increase consumer awareness. Today, consumers face the challenge of identifying a legitimate bet and when they are playing in an absolutely illegal one, without any compliance with rules, regulations, tax collection, or guarantee that the consumer will be playing in a system with integrity, and that they will receive payment if they win,” he noted.

Alongside enforcement, authorities are also prioritizing consumer awareness. One of the main challenges, according to Wada, is helping users distinguish between licensed and illegal platforms.

"Illegal operators may be stealing your data, manipulating algorithms, opening it up to minors and may even be linked to organized crime. So it's an individual risk, but also a collective risk for the whole of society," stated Wada.