Gabriel Galípolo, President of the Central Bank of Brazil, told the Parliamentary Inquiry Commission (CPI) on betting this week that the bank lacks the legal authority to block illegal gambling websites.
During the CPI session on April 8, Galípolo was asked about the Central Bank’s ability to take action against internet service providers and payment firms involved in unauthorized betting activities.
He clarified that regulatory responsibility rests solely with the Secretariat of Prizes and Bets (SPA), which determines the legality of betting operations. The Central Bank, he said, can only act after receiving direction from the SPA—typically by informing financial institutions when they must stop servicing a gambling company. The bank itself cannot block transactions; that action must be taken by the financial institutions.
Galípolo attributed the spread of illegal betting sites to the regulatory limbo between the initial passage of online betting legislation in 2018 and the full implementation of rules in 2023. The Central Bank’s executive secretary, Rogério Antônio Lucca, estimated that between BRL 20 billion and BRL 30 billion is spent monthly on illegal betting in Brazil.
In March, the SPA issued Normative Ordinance No. 566 to clarify how payment providers should report transactions linked to unlicensed betting sites.
Senator Dr. Hiran Gonçalves, who chairs the CPI, raised concerns about what he described as a “legal vacuum” preventing enforcement actions against illegal betting. Senator Soraya Thronicke, CPI leader, emphasized that only the SPA has the authority to penalize such operations and questioned whether the Central Bank could act against payment providers.
Gabriel Galípolo, President of the Central Bank of Brazil, mentioned:
We do not have the legal authority to act on transactions involving illegal bets.What we can do is, in the scope of preventing money laundering and financing terrorism, we act so that these institutions have these controls and procedures to communicate.
Last week, Regis Dudena, head of the Secretariat of Prizes and Bets (SPA), confirmed that Brazil will prohibit the use of social welfare funds for betting, with an official ordinance on the matter expected soon.
However, Dudena acknowledged that enforcing the ban may prove challenging. According to the National Secretariat of Citizen Income (Senarc), only about 1% of Bolsa Família recipients use a physical card to access their benefits, while the remaining 99% access funds through bank accounts. As a result, restricting the use of the physical card would have little impact on preventing welfare-funded gambling.
Data from the Central Bank showed that in August 2024, around 20% of the funds distributed via Bolsa Família were used for online betting.
Gabriel Galípolo, President of the Central Bank of Brazil, added:
Today, the Central Bank has no authority to impose this type of restriction on people who receive Bolsa Família from placing bets. It is not within our jurisdiction, scope, nor does it have the authority to do so.
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