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Across Latin America, governments are ramping up their fight against illegal gambling like never before. What was once a loosely policed grey zone of offshore websites and unlicensed operators has become a priority issue for regulators determined to clean up the industry, protect consumers, and reclaim lost tax revenue.
The region’s three biggest stories — from Colombia, Mexico, and Brazil — reveal a common goal: to stop the bleeding caused by illicit betting and restore integrity to both the gaming and sports sectors. Yet each country is taking its own route to the same destination.
Colombia takes direct control over website blocking
In Colombia, the national gambling regulator Coljuegos has taken a bold new step that could set the tone for the rest of Latin America. The agency is now working directly with internet service providers (ISPs) to block illegal gambling websites — a move designed to make enforcement faster, tougher, and far more efficient.
Until recently, when Coljuegos identified an unauthorized gambling platform, it had to go through a long bureaucratic process involving several ministries. That process often slowed down or watered down enforcement. But under a new directive issued in 2025 by the Ministry of Information Technologies and Communications (MinTic), Coljuegos can now issue blocking orders directly to internet companies.
It’s a significant shift in power and signals a more aggressive stance from the regulator. Officials say the measure is part of the country’s broader strategy to “clean house” online and protect Colombia’s growing legal market.
To date, the regulator has ordered the blocking of more than 28,000 unauthorized gambling websites — an astonishing number that shows just how widespread illegal activity has become.
One of the most high-profile targets has been Polymarket, a crypto-based prediction platform that lets users bet on political and social outcomes. Coljuegos deemed the platform’s operations illegal under Colombian law and ordered it to be blocked nationwide. The regulator argues that prediction markets, even when disguised as “trading,” are simply another form of gambling — and therefore must be licensed and taxed like any other.
Colombia currently has 14 authorized operators, including Betsson, Rushbet, and Betplay. Together, these companies have contributed over COP 257 billion (€56.5 million) to healthcare programs this year alone, plus another COP 783 billion (€172.3 million) in VAT. Coljuegos says blocking unlicensed sites isn’t just about enforcing the rules — it’s about protecting the financial resources that fund essential public services.
“The idea is to make sure that when people bet, their money goes to the right place — not to unregulated websites that pay nothing back into society,”
one official close to the regulator said.
Mexico confronts a betting scandal in its own backyard
While Colombia focuses on online enforcement, Mexico has found itself tackling a more human — and perhaps more damaging — form of illegal gambling: match-fixing and player betting.
Earlier this year, the Mexican Football Federation (FMF) dropped a bombshell. After a detailed investigation, it revealed that several players in the country’s lower leagues had been betting against their own teams. The players, from Real Apodaca FC and Correcaminos de la UAT, were found to have placed bets and manipulated results in exchange for profit.
The punishments were severe. Seven players received bans totaling 57 years, with some prohibited from playing professionally for as long as sixteen years. The FMF made it clear that this wasn’t just about punishing a few bad actors — it was about sending a message that match-fixing will not be tolerated.
The scandal has had major repercussions for Mexican football. Beyond the suspensions, the FMF filed a criminal complaint with the Attorney General’s Office (FGR) to determine whether the conduct violated national laws. It also informed FIFA, ensuring the bans extend beyond Mexico’s borders.
At the same time, the FMF is introducing preventive measures to stop similar cases from happening again. Integrity workshops, created in partnership with the Mexican Association of Footballers (AMFPRO), will educate players about the dangers of betting and corruption. The federation is even pushing for new legislation to increase penalties for match manipulation.
This isn’t the first time illegal betting has been linked to deeper problems in the region. Recently, speculation arose over possible connections between Mexican criminal groups and an ongoing betting case in Paraguay involving Montego Trading S.A. — but the Mexican government swiftly denied any involvement. Officials said there was “no evidence whatsoever” linking Mexican crime syndicates to the Paraguayan company, which stands accused of running unauthorized betting shops and websites.
For Mexico, these events have underscored how fragile the line between legal and illegal betting can be — especially when sports, money, and crime start to overlap.
Brazil goes on the offensive
If Colombia’s approach is surgical and Mexico’s is disciplinary, Brazil’s can best be described as a full-blown offensive.
Since late 2024, the National Telecommunications Agency (Anatel) and the Secretariat of Prizes and Betting (SPA) have been working hand in hand to remove illegal betting platforms at record speed. According to official figures, more than 18,000 unlicensed sites have already been blocked — with 15,000 of those takedowns happening in just the first half of 2025.
The timing is no coincidence. Brazil’s newly regulated sports betting market is finally up and running, with 79 licensed operators legally offering wagers. The government wants to ensure that legitimate companies — the ones paying taxes and following responsible gaming rules — aren’t competing with hundreds of illegal sites operating under the radar.
Authorities are also targeting the money trail. Between January and June, banks and payment providers filed 277 suspicious transaction reports and closed 255 accounts linked to illegal betting networks. The SPA has been working closely with financial institutions to freeze funds, stop transfers, and cut off payment access to rogue operators.
But Brazil’s response isn’t only punitive. The government is also focusing on responsible gambling and public health. Officials are launching a self-exclusion system that allows players to block themselves from all betting platforms, as well as new risk-assessment tools designed to identify problem gambling behaviors.
The Ministry of Health and Fiocruz — the country’s top biomedical institute — are developing programs to train healthcare workers to recognize and treat gambling addiction. For Brazilian regulators, this dual approach — strict enforcement combined with player protection — is key to ensuring the long-term health of the market.
A region at a turning point
What ties all these stories together is a broader realization: Latin America’s gambling market is growing up.
For decades, the region’s gaming industry existed in a grey area — tolerated, but rarely controlled. Offshore websites thrived, often outpacing regulators and paying nothing in taxes. But as more countries begin to regulate, the economic stakes have become impossible to ignore. Billions in potential revenue are now at play, and governments are finally acting to protect it.
Colombia’s direct ISP blocking, Mexico’s integrity reforms, and Brazil’s aggressive enforcement all point in the same direction: a regional effort to reclaim control.
That said, the challenges remain enormous. Illegal sites can easily resurface under new domains, and the rise of cryptocurrency has made tracing financial flows more difficult. For players, the difference between a legal and illegal betting site isn’t always clear — and for regulators, that means the battle is ongoing.
Still, the tone has changed. Latin American governments are no longer talking about gambling in moral terms — they’re talking about it in economic ones. It’s about regulation, accountability, and public benefit.
The region’s gambling boom is not slowing down — but for the first time, it’s being shaped by laws, not loopholes.
If this year was about expansion, 2026 is the year Latin America gets serious. The continent’s regulators aren’t just fighting illegal betting; they’re fighting for the future of a legal, transparent, and sustainable gaming industry.
