Brazil Expands Financial Enforcement Against Illegal Betting Operators

The Brazilian Ministry of Finance released Ordinance No. 17.66 of June 17, 2026, which describes procedures related to the enforcement of joint tax liability of financial institutions, payment institutions, and payment scheme operators involved in facilitating transactions of unauthorized sports betting operators.

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This regulation provides a basis for the enforcement of joint tax liability provisions included in Complementary Law No. 224/2025. This provision was established to enhance monitoring of the authorized Brazilian betting market.

Financial service providers will be subject to joint tax liability with respect to illegal betting activities if they do not block further transactions with the unauthorized operator following receipt of formal notice of the federal authorities.

According to the Ministry of Finance, the measure aims at limiting the access of unauthorized operators to the financial system in Brazil while strengthening the regulated market.

Notification Procedure

The operational procedure will involve coordinated actions of the Secretariat of Prizes and Betting (SPA) and the Federal Revenue Service (RFB). Within 24 hours after receiving a formal notification, financial institutions must implement restrictive measures and block any new transactions with the indicated irregular operator.

The notice will contain all information required to identify an unauthorized company and block transactions related to the fixed-odds betting activity. Lack of action within this timeframe can result in joint tax liability according to the new provisions.

Moreover, the regulation applies to both payment providers and individuals or organizations engaged in advertising and promotion of illegal betting operators and can become liable for taxes with regard to the unauthorized gambling activity.

Crackdown on the Illegal Market Gaining Momentum

It is important to note that the regulation is one of the elements of a wider strategy of the federal government aimed at limiting the financial and operational capacities of illegal betting operators. Thus, authorities seek to strengthen tax compliance while protecting the integrity of the regulated market.

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The Ministry of Finance stated that the initiative helps to coordinate actions of different regulatory bodies and makes it harder for unauthorized operators to receive payment services and attract customers in Brazil.

Authorities consider cutting off access to the financial infrastructure to be one of the most efficient instruments to reduce the number of illegal operators and make them migrate to licensed platforms authorized by the federal government.

Results of the Enforcement Actions and Self-Exclusion Program

According to the SPA, the cooperation agreement signed with the Brazilian National Telecommunications Agency (ANATEL) in October 2024 resulted in blocking more than 50 thousand illegal domains. Moreover, monitoring systems are continually being developed and enhanced; for example, a special virtual lab for quick blocking of unauthorized platforms is being created.

As far as the enforcement of advertising is concerned, regulators have blocked 780 social network accounts, 306 advertising posts, and 190 unauthorized software applications related to illegal betting activities. Such actions are performed in collaboration with the advertising self-regulatory organizations and major technology platforms active in Brazil.

Finally, the measures related to responsible gaming also became more extensive. In December 2025, the federal government introduced a special centralized self-exclusion platform allowing players to restrict their access to all authorized betting operators through a single request. According to the official data, more than 650 thousand self-exclusion requests have been received to date.

New Decree Provides the Procedures for Blocking Accounts

Along with the new ordinance, the Brazilian government issued Decree No. 13.033 of June 18, 2026, which regulates Article 21-A of Law No. 14.790/2023. This document establishes operational procedures for blocking accounts associated with unauthorized betting operators and specifies how information should be transferred to facilitate forfeiture proceedings in favor of the federal government.

With these two documents, the government took another step in tightening of the enforcement actions against illegal betting operators and strengthening of the country’s regulated gaming environment.

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Source: BNL Data