Brazil Creates Procedure to Recover More Than R$1 Billion in Funds Linked to Illegal Betting

The Ministry of Justice and Public Security of Brazil has established a new administrative procedure to unfreeze funds frozen by illegal operators of fixed-odds betting. It is specified in Ordinance No. 1,287/2026 of 02 September, signed by Minister Wellington César Lima e Silva.

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The ministry estimates that the value of the funds could be more than R$1 billion in total to those that are potentially associated with irregular betting. The money, however, will not necessarily be the government’s. Their automatic transfer will require completion of administrative proceedings and a later judicial determination of the forfeiture.

How the Recovery Process Will Work

The process will be coordinated by the National Public Security Secretariat (Senasp), under the framework of the Directorate of Management of the National Public Security Fund. The directorate will be given documentation from the Secretariat of Prizes and Betting of the Ministry of Finance, evaluate the evidence, initiate proceedings, and make first instance administrative decisions.

Documentation will be passed to a Process Instruction Commission of not less than three public servants for examination, which will prepare a final report for each case. The party will be notified and have 15 days to present a defense, documents, evidence and witnesses. There will also be an appeal within 10 days, which will be handled by the Minister of Justice and Public Security.

If the administrative decision favors forfeiture, then the case will be referred to the Attorney General’s Office (AGU). The AGU will examine the legal situation and decide on the proper legal steps to take to obtain definitive forfeiture of the money.

Funds Could Be Directed to Public Security

After the court confirms the forfeiture, the recovered resources can be added to the National Public Security Fund and be utilized for public security programs. Senasp will suggest allocations of the funds based on budgetary and financial rules and the secretariat’s strategic planning.

Chico Lucas, the National Public Security Secretary of Brazil, stated that the measure aims to redirect funds from illegal activities to public security.

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“We are creating a path for money moved through illegal activities to return to society in the form of public security. We are talking about a potential amount of more than R$1 billion which, after all administrative and judicial steps have been completed, could strengthen the National Public Security Fund and expand investment capacity in the states and the Federal District. It is an important logic: removing resources from illegal activity and converting them into infrastructure, technology and operational capacity for those who fight crime.”

Oversight and Detection of Additional Offenses

The new framework also includes monitoring obligations for blocked amounts, for the resources that are placed under judicial review, and for those that are finally allocated to the public fund. The Directorate for Management of the National Public Security Fund will be responsible for preparing reports and management indicators on the administrative and judicial stages of each of the processes.

The authorities that participate in the proceedings shall also report on the signs of other possible offense to the respective institutions. Any activities that could constitute a crime are referred to the prosecutors and police authorities, and possible tax liabilities must be relayed to the Federal Revenue Service and the National Treasury’s Attorney General’s office.

The ordinance will offer a legal structure to redirect public resources linked to “illegal gambling” to the public sphere, said Camila Pintarelli, director of Management of the National Public Security Fund.

“With this ordinance, we are taking a concrete step toward transforming the damage caused by illegal betting into protection for society. By creating a firm, transparent and legally secure path to remove these funds from illegality, we enable resources previously associated with harmful practices to be directed toward strengthening and structuring public security, returning to the population in the form of prevention, care and protection.”

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Source: iGaming Brasil