Brazilian Lawmaker Proposes Making Illegal Bookmakers Refund Players’ Losses

^{Jorge Goetten, Brazilian federal deputy}

A proposal in Brazil would require illegal bookmakers to refund customers’ gambling losses. The bill was introduced in the Chamber of Deputies by federal deputy Jorge Goetten.

Under the proposed legislation, players would be entitled to recover their net losses. Compensation would be calculated on the amount lost, not the total deposited.

For example, if a player deposited BRL 10,000 with an illegal bookmaker and withdrew BRL 3,000, they would be entitled to claim back the remaining BRL 7,000.

Illegal bookmakers would be responsible for refunding these losses. Banks and payment providers would also be held liable if they processed transactions for such operators in violation of payment monitoring and blocking rules. Financial institutions that reimburse players would then have the right to recover the money from the bookmakers.

The proposal thus aims not only to protect players but also to curb the financing of illegal gambling. According to the bill’s author, the prospect of having to pay compensation would encourage banks to scrutinise transactions involving unlicensed operators more closely.

The bill has not yet been passed. If approved, the authorities would set separate procedures for submitting compensation claims and verifying the amount of losses.

The proposal comes amid tighter gambling regulations in Brazil. In September 2026, the country banned online gambling, requiring operators to cease operations and return remaining balances in customers’ gaming accounts.