Brazil: Flávio Bolsonaro faces gambling money laundering allegations as betting regime remains in limbo

Brazil's presidential run-off on Sunday 25 October has been joined by a new controversy touching the gambling sector. Senator Flávio Bolsonaro faces allegations of involvement in a money laundering scheme tied to online gambling businesses, according to SBC News.

The Federal Police (Polícia Federal) are examining his relationship with lawyer Willer Tomaz, described as a friend of Bolsonaro and reportedly a money mule for millions of reais moved through several gambling platforms tied to the lawyer's businesses. The investigative magazine piauí detailed the claims, and Folha de S.Paulo followed up that Tomaz generated R$6.3bn (about €1bn) in wagering transactions between 2025 and 2026, mainly on the Blaze platform. No charges have been filed. Tomaz says the figure is inflated because it reflects accumulated betting turnover, and states that deposits for the period totalled R$326m and withdrawals R$234m, all from legitimate sources.

Investigators also want to question Bolsonaro over an alleged undisclosed indirect stake in Best Bet, operated by Rede Loto under a licence from the Rio de Janeiro State Lottery (LOTERJ). Rede Loto is majority owned by Cathedral Holdings, a Madeira-based company in which Tomaz is a partner. Documents cited by piauí reportedly name Bolsonaro as a master user of a bank account belonging to Alcazar Holdings, another Tomaz-controlled Madeira company. Both men deny that he shared access to the account or held a stake in Best Bet, and the allegations remain unproven.

President Lula has used the claims in the campaign and challenged Bolsonaro to release bank, tax and telephone records, offering reciprocal disclosure. Both campaigns have submitted a disclosure agreement to the electoral court, but its scope is disputed. Lula's team says Alcazar is covered, while Bolsonaro's representatives say Tomaz must authorise release of the company's financial information. Publication also requires judicial approval.

Meanwhile, the Bets regime is effectively shut down. Lula ended it through a provisional measure issued on 25 September and sanctioned on 6 October, and Congress must now decide the future of the ban. Observers believe a Bolsonaro victory would not guarantee operators a return; he has promised a solution for football clubs and betting businesses but has not committed to restoring full authorisation. The measure lets existing authorisations expire without refunds, and Flamengo and other Serie A clubs have launched a Supreme Court challenge seeking direct compensation. Any revival could produce a patchwork regime shaped by electoral bargaining, congressional amendments and court appeals.