Brazil has strengthened action against illegal betting operators by giving authorities more power to freeze funds and target payment companies that process money for unlicensed platforms. President Luiz Inácio Lula da Silva signed Decree No. 13,033 on June 19. The measure allows the government to block assets linked to betting companies that are not approved by the Ministry of Finance.
Decree targets betting funds
The decree allows preventive action against money tied to unauthorised betting activity. Funds frozen under the process can be directed to public security work.
The measure goes beyond website blocking and advertising controls. It targets the payments that allow illegal operators to keep taking deposits and paying withdrawals after websites are removed. Brazil has already blocked thousands of illegal betting sites through telecom regulator Anatel. Many operators still return through new domains and payment methods.
Payment companies face new rules
The Finance Ministry has also set tax responsibility rules for banks, payment companies and financial firms that assist illegal betting operators. The requirements were published under Ordinance No. 1,766.
Financial firms may face action if they process payments for unauthorised betting brands or ignore official requests. Banks, fintechs, payment processors and digital wallets are all covered by the new approach.
The rules place more responsibility on companies that move betting-related money. Payment providers will need stronger checks on operators using their systems.
Illegal market remains active
Brazil’s regulated fixed-odds betting market began in January 2025. Licensed operators must meet rules on payments, responsible gambling, advertising and customer verification. Illegal platforms still compete for Brazilian customers through offshore websites, new domains and alternative payment routes. Many continue to operate after blocking actions by changing their online presence.
The government has linked illegal betting to fraud, money laundering and other financial crime risks. Authorities are now treating the issue as both a gambling enforcement and financial control matter.
Providers must block notified payments
Ordinance No. 1,766 requires financial and payment institutions to block transactions linked to illegal betting operators within 24 hours of receiving formal notice from the Finance Ministry.
The rules also extend responsibility to companies and individuals that promote unlicensed betting brands. This adds banks, payment firms and advertising channels to the government’s action against illegal operators.
