Brazil Online Gambling Ban Exposes Suspicious High-Value Accounts

Brazilian authorities are investigating around 40 online gambling accounts containing unusually large sums over possible links to money laundering and organized crime.

The move follows the country’s sweeping ban on sports betting and online casinos.

Finance Minister Dario Durigan said some accounts contained more than R$500,000 (US$100,000), while others held upwards of R$1 million (US$200,000).

The suspicious balances were uncovered as the government began arranging the return of R$1.325 billion (US$264 million) still held by gambling operators on behalf of approximately 26.5 million customers.

Suspicious Accounts

Durigan said the government was examining around 40 accounts because their balances were vastly higher than those of ordinary bettors.

Investigators will examine the origins of the funds and whether they are connected to money laundering or criminal organizations. Authorities have not identified the account holders or announced any criminal charges.

According to Durigan, just 1% of bettors account for 80% of the outstanding balances, while 3.4% hold approximately 90%.

At the other end of the scale, 86.2 million accounts contain less than one real, or around 20 US cents, each. Collectively, those accounts hold R$15.5 million (US$3.1 million).

The number of accounts exceeds the number of individual bettors because customers can maintain accounts with multiple operators.

Billions to Be Returned

Brazil’s gambling prohibition took effect September 25, although licensed operators were given until October 5 to allow customers to withdraw their money.

The websites were ordered offline October 6, bringing an abrupt end to a regulated industry that only began operating under its new licensing system in January 2025.

Operators were required to provide banks with details of outstanding balances, allowing refunds to be made directly to customers between October 9 and 14.

Any money that cannot be returned through the banking system will be handled by state-owned Caixa Econômica Federal.

The government has also requested the blocking of 13,241 illegal gambling websites since September 25, alongside thousands of social media accounts and channels promoting unauthorized betting.

Industry Fights Back

Industry groups are challenging the ban in Brazil’s Supreme Federal Court, arguing that the sudden reversal threatens investment and jobs.

On Thursday (October 8), a federal judge in São Paulo granted Stake permission to continue operating until October 25, finding that the government had not allowed the company sufficient time to wind down its business.

The government said it would appeal.

The gambling industry has also warned that closing licensed platforms risks driving customers toward illegal offshore operators, potentially undermining the government’s efforts to combat financial crime.