Brazil implements financial blocking measures to curb illegal betting market
The federal government has announced further tightening of measures against sports betting operators without authorisation in Brazil. A decree signed by President Luiz Inácio Lula da Silva on Friday (19) establishes mechanisms to interrupt the flow of funds to illegal betting operators, allowing the blocking of bank accounts, the retention of funds, and even the permanent forfeiture of assets obtained through illegal betting activities.
The initiative is another step in the strategy adopted by the Ministry of Finance since the regulation of the fixed-odds betting market and seeks to target the key element sustaining these operations: the financial system.
The measures are inspired by instruments already used in the fight against organised crime and were made possible following the approval of the so-called Anti-Fence Law by the National Congress. Among the mechanisms provided for is the forfeiture of assets belonging to companies operating betting services without a licence in the country. Confiscated funds will be allocated to the National Public Security Fund (FNSP), which is used to finance crime prevention and law enforcement initiatives.
According to the Executive Secretary of the Ministry of Finance, Dario Durigan, the measure seeks to prevent unauthorised operators from continuing to use formal channels to move funds.
“By blocking the circulation of funds in unauthorised betting operations, the rule strikes at the economic core of illicit activities, reduces incentives for illegality and reinforces the government’s commitment to serious, effective regulation guided by the public interest,” he said.
How account blocking will work
Responsibility for identifying illegal operators will remain with the Prize and Betting Secretariat (SPA), the body linked to the Ministry of Finance and responsible for supervising the sector. When it identifies a company operating without authorisation, the SPA will issue a notice of violation, a document that formalises the irregularity and sets out the evidence demonstrating the unlawful operation of betting activities.
Following this procedure, financial institutions and payment companies will be notified to block, within 24 hours, funds held in accounts linked to the illegal operator and prevent any new financial transactions related to the activity. After implementing the measures, institutions must report compliance with the order within 48 hours. The Central Bank will be informed simultaneously and will monitor the execution of the blocking measures.
Operational details will be regulated at a later stage through a resolution issued by the National Monetary Council (CMN), which will define procedures for freezing accounts and retaining funds.
Administrative proceedings will be conducted by the National Secretariat for Public Security (Senasp), linked to the Ministry of Justice and Public Security. Notified companies will have the right to a full defence and may challenge the findings, as well as request the production of evidence and additional inquiries.
According to the Minister of Justice and Public Security, Wellington Lima, the new regulation allows funds derived from illegal activities to be redirected to public security initiatives.
If the administrative process concludes with confirmation of the irregularity, the blocked funds will be declared forfeited and transferred to the National Public Security Fund.
The decree establishes that the blocking of accounts will remain in force until the funds are deposited with the court. The Office of the Attorney General (AGU) may request additional measures from the judiciary aimed at preserving assets.
The government expects that the risk of permanently losing funds will deter clandestine operators, especially those who use financial intermediaries or shell companies to process payments from Brazilian bettors.
Crackdown on illegal betting operators intensified after regulation
The tightening of measures comes at a time when the government is increasing oversight of the online betting market. Since the fixed-odds betting regulation entered into force in January 2025, only companies authorised by the Prize and Betting Secretariat have been allowed to offer services in the country. Operators without a licence are considered illegal.
One of the main enforcement fronts has been blocking access to online platforms. Since October 2024, the SPA has maintained a technical cooperation agreement with the National Telecommunications Agency (Anatel). According to data released by the government, the partnership has already resulted in the blocking of more than 50,000 domains used by unauthorised operators.
In addition, the agency says it is developing a virtual laboratory to improve digital monitoring and accelerate the identification of new illegal websites. Oversight also extends to unauthorised advertising on social media and applications. According to the SPA, 780 profiles and 306 publications promoting unauthorised platforms have already been removed. Another 190 betting applications considered irregular have also been taken offline.
These actions are carried out jointly with the National Council for Advertising Self-Regulation (Conar) and the Digital Council of Brazil, an entity that brings together some of the country’s leading technology companies.
Regulated market supports measures against clandestine operators
The new rules have received support from representatives of the regulated industry. The National Association of Games and Lotteries (ANJL) stated that the government’s decision represents another step forward in protecting the legal betting market and highlighted that the measures are the result of an ongoing process of institutional cooperation between the private sector and public authorities.
“The clandestine betting industry exposes consumers to risks, evades taxes and creates unfair competition for companies that comply with Brazilian regulatory requirements. The measures announced represent an important step in strengthening the regulated betting market. The progress we are observing is the result of an environment of dialogue and institutional cooperation that has made it possible to gather information, develop tools and expand understanding of the activities of illegal operators in the country,” said Lemos Jorge.
Since the beginning of the regulatory process, industry associations have advocated stricter measures against unauthorised companies, arguing that simply removing websites is not enough to eliminate illegal betting services. Financial blocking is now regarded as one of the most effective tools for restricting these operators’ activities.
This article was first published on the Portuguese SiGMA News page on 19 June 2026.
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