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Brazil Blocks Seven Sports Betting Operators Over Cybersecurity Failings

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  • Brazil’s SPA suspended seven sports betting operators on May 30, 2025, for failing to submit cybersecurity reports, affecting 17 brands like Pixbet and Bet da Sorte.
  • Three operators, including Pixbet, regained licenses by June 2 after complying, but four remain blocked, facing R$40,000 daily fines and a 30-day deadline.
  • The $29.7 billion market could see safer betting but risks losing players to unregulated sites, with the SPA planning to block 5,200 illegal platforms by October 2025.

Why the Operators Were Blocked

On May 30, 2025, the SPA issued an ordinance suspending seven operators—Pixbet Soluções Tecnológicas, Caixa Loterias, TQJ–Par (Grupo Silvio Santos), 7MBR LTDA (Cbet), and three others—for not delivering mandatory security assessments for their betting systems.

These reports, required under Brazil’s fixed-odds betting regulations that took effect January 1, 2025, ensure system integrity and player safety. The suspensions, affecting brands like Pixbet, FlaBet, and Bet da Sorte, aim to enforce compliance in a market where 69 companies are authorized.

You can see the issue: without these assessments, the SPA fears vulnerabilities that could harm bettors or enable fraud. By June 2, three operators, including Pixbet, had their licenses reinstated after complying, but four remain blocked.

Details of the Regulatory Action

The SPA’s crackdown is part of a broader push to strengthen Brazil’s $29.7 billion betting market, which saw 134 companies apply for licenses costing R$30 million ($5.3 million) each.

Suspended operators were given 30 days to submit the overdue reports or face fines up to R$40,000 ($7,000) daily. The SPA also plans to block 5,200 unauthorized betting sites by October 2025, signaling a zero-tolerance stance.

Pixbet, a Flamengo sponsor, successfully appealed its suspension in Federal Court, showing some leniency for operators who act swiftly. You might notice this reflects a balancing act—enforcing strict rules while allowing room for compliance to keep the market competitive.


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Impact on Brazil’s Betting Industry

Brazil’s regulated market, where 35 companies hold full licenses covering 173 brands, including Betano and Bet365, is feeling the heat.

Losing access, even temporarily, hurts operators’ revenue and reputation, especially for high-profile sponsors like Pixbet. For you, this could mean fewer betting options if more operators fail to comply, but it also promises a safer, more transparent market.

The crackdown may deter non-compliant firms but risks pushing bettors to unregulated offshore sites, a concern echoed in posts on X.

With the industry projected to generate R$3.23 billion ($568 million) in taxes annually, the SPA’s actions aim to protect this revenue while addressing consumer complaints, like the 1,048 logged on Consumidor.gov.br in early 2025.

What’s Next for Brazil’s Betting Market

The SPA is pushing forward with its 2025-2026 regulatory roadmap, including a National Betting System and stricter payment oversight, like blocking Bolsa Família recipients from gambling with welfare funds.

The four remaining suspended operators must comply soon or face permanent bans, while the SPA’s public consultation will shape future rules. You might wonder how this will affect your betting: expect tighter security and fewer shady platforms, but possibly higher costs for operators that could impact odds or bonuses.

With Brazil’s Senate also debating a betting ad ban, the market faces more changes. Stick to licensed “.bet.br” platforms to stay safe as regulation tightens

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Oscar Alder
Oscar Alder
A newcomer to the iGaming industry, eager to learn and grow in the world of online gaming. Though just starting out, he brings fresh perspectives, enthusiasm, and a strong desire to understand the ins and outs of the industry.

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