Across Latin America, a significant shift is underway as governments intensify their efforts to combat illegal gambling. This once loosely monitored grey market of offshore websites and unlicensed operators has become a focal point for regulators who aim to clean up the industry, protect consumers, and reclaim lost tax revenues. The stories emerging from Colombia, Mexico, and Brazil reveal a shared mission to halt the financial drain from illicit betting activities and restore integrity to the gaming and sports sectors. Each nation, however, is forging its own path towards achieving this goal.
Colombian Regulators Take Charge with Direct Website Blocking
In Colombia, the national gambling regulator, Coljuegos, has embarked on a groundbreaking initiative that may set a precedent for the rest of Latin America. The agency is now directly collaborating with internet service providers (ISPs) to block illegal gambling websites, a strategy designed to enhance the efficiency and speed of enforcement.
Previously, when Coljuegos identified an unauthorized gambling platform, it had to navigate a complex bureaucratic process involving various ministries, often leading to delays. However, a new directive from the Ministry of Information Technologies and Communications (MinTIC) in 2025 has empowered Coljuegos to issue direct blocking orders to internet companies. This shift represents a significant increase in the regulator’s authority, indicating a more aggressive approach to enforcement. Officials emphasize that this measure is part of a broader strategy to purify the online landscape and protect Colombia’s burgeoning legal market.
To date, Coljuegos has ordered the blocking of over 28,000 unauthorized gambling websites, underscoring the extent of illegal activity. Among the high-profile targets is Polymarket, a crypto-based prediction market platform deemed illegal under Colombian law. Coljuegos argues that such prediction markets, despite being disguised as “trading,” are another form of gambling that requires licensing and taxation.
Currently, Colombia has 14 authorized operators, including notable names like Betsson, Rushbet, and Betplay. Collectively, these companies have contributed over COP 257 billion (€56.5 million) to healthcare programs this year, along with an additional COP 783 billion (€172.3 million) in VAT. For Coljuegos, blocking unlicensed sites is not just about rule enforcement—it’s about safeguarding the financial resources that support essential public services. “The goal is to ensure that when people place bets, their money supports society, not unregulated websites that contribute nothing,” remarked an official closely linked to the regulator.
Mexico Tackles a Betting Scandal on Home Turf
While Colombia concentrates on online enforcement, Mexico is grappling with a more human—and potentially more destructive—form of illegal gambling: match-fixing and player betting. Earlier this year, the Mexican Football Federation (FMF) disclosed a scandal involving several players from the lower leagues betting against their own teams. Players from Real Apodaca FC and Correcaminos de la UAT were found to have placed bets and manipulated match outcomes for personal gain.
The consequences were severe. Seven players received bans totaling 57 years, with some being prohibited from playing professionally for up to sixteen years. The FMF’s actions were not just punitive but also a clear message that match-fixing would not be tolerated. Beyond the suspensions, the FMF filed a criminal complaint with the Attorney General’s Office (FGR) and informed FIFA, ensuring that the punishments extend beyond Mexico’s borders.
In addition to addressing the scandal, the FMF is implementing preventative measures to avoid future occurrences. Integrity workshops, developed in collaboration with the Mexican Association of Footballers (AMFPRO), are being introduced to educate players about the dangers of betting and corruption. The federation is also advocating for new legislation to increase penalties for match manipulation.
This incident isn’t the first instance where illegal betting has been linked to deeper regional issues. Recently, speculation arose regarding potential connections between Mexican criminal groups and a betting case in Paraguay involving Montego Trading S.A. However, the Mexican government quickly denied any involvement, stating there was “no evidence whatsoever” linking Mexican crime syndicates to the Paraguayan company, which is accused of operating unauthorized betting outlets and websites.
These events highlight the fragile boundary between legal and illegal betting in Mexico, particularly when sports, money, and criminal activities intersect.
Brazil Launches an Aggressive Offensive
In contrast to Colombia’s surgical approach and Mexico’s disciplinary methods, Brazil is undertaking a comprehensive offensive. Since late 2024, the National Telecommunications Agency (Anatel) and the Secretariat of Prizes and Betting (SPA) have collaborated to eliminate illegal betting platforms at an unprecedented pace. Official figures indicate that more than 18,000 unlicensed sites have been blocked, with 15,000 of those actions occurring in just the first half of 2025.
This surge in enforcement coincides with the launch of Brazil’s newly regulated sports betting market, which now features 79 licensed operators. The government is committed to ensuring that legitimate businesses—those adhering to tax obligations and responsible gaming rules—are not overshadowed by a plethora of illegal sites operating covertly.
Brazilian authorities are also targeting financial networks. Between January and June, banks and payment providers submitted 277 suspicious transaction reports and closed 255 accounts linked to illegal betting networks. The SPA is working closely with financial institutions to freeze funds, halt transfers, and restrict payment access to illicit operators.
However, Brazil’s strategy is not solely punitive. The government is also prioritizing responsible gambling and public health initiatives. Officials are introducing a self-exclusion system, allowing players to block themselves from all betting platforms, alongside new risk-assessment tools aimed at identifying problem gambling behaviors.
Additionally, the Ministry of Health and Fiocruz, the nation’s leading biomedical institute, are developing programs to train healthcare workers to recognize and treat gambling addiction. For Brazilian regulators, this dual approach—combining strict enforcement with player protection—is crucial to ensuring the market’s long-term viability.
A Region at a Crucial Juncture
These developments signal a broader awareness across Latin America: the gambling market is maturing. For decades, the region’s gaming industry lingered in a grey area—tolerated but rarely regulated. Offshore websites flourished, often outpacing regulatory efforts and contributing nothing in taxes. As more countries embrace regulation, the economic implications have become impossible to overlook. Billions in potential revenue are at stake, prompting governments to act decisively to protect it.
Colombia’s direct ISP blocking, Mexico’s integrity reforms, and Brazil’s expansive enforcement all point towards a concerted regional effort to regain control. Nonetheless, the challenges remain significant. Illegal sites can easily reappear under new domains, and the rise of cryptocurrency complicates the tracking of financial transactions. For players, distinguishing between legal and illegal betting sites isn’t always straightforward, meaning the regulatory battle continues.
Despite these hurdles, the narrative has shifted. Latin American governments are increasingly discussing gambling in economic terms rather than moral ones. It’s about regulation, accountability, and public benefit. The region’s gambling boom shows no signs of slowing, but for the first time, it is being shaped by laws rather than loopholes.
If 2025 was a year of expansion, 2026 appears poised to be the year when Latin America truly gets serious about regulating its gambling industry. Regulators are not merely combating illegal betting; they are safeguarding the future of a legal, transparent, and sustainable gaming sector.
Sarah Thompson is a seasoned writer specializing in casino gaming and online gambling. With over a decade of experience in the industry, Sarah brings in-depth knowledge and a keen eye for detail to her work at CasinoNoDeposits.com. Her expertise lies in uncovering the latest no deposit bonuses and providing comprehensive reviews of online casinos. Passionate about helping players maximize their gaming experience, Sarah combines her analytical skills with a flair for engaging storytelling.
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