Brazil has introduced new measures aimed at curbing the financial system's use by unauthorized fixed-odds betting operators. These measures combine account-blocking protocols with the potential for shared tax liability for financial institutions that continue to process related transactions.
The Ministry of Finance released Ordinance No. 17.66 on June 17, which outlines the joint tax liability as stipulated in Article 6 of Complementary Law No. 224, effective December 26, 2025.
This regulation applies to financial institutions, payment services, and providers that facilitate the illegal operation of fixed-odds betting lotteries. Liability can be imposed if these entities, after receiving a formal notification from the Ministry of Finance, persist in allowing or processing transactions for betting with companies not authorized under Law No. 14.790, enacted in 2023.
Notifications will be jointly issued by the Secretariat of Prizes and Betting and the Special Secretariat of the Federal Revenue of Brazil. Once notified, institutions must implement restrictive measures within 24 hours to prevent any further transactions that could support unauthorized betting activities.
The notifications will specify the companies accused of regulatory violations and include the necessary details to block transactions associated with unauthorized fixed-odds betting.
Furthermore, the ordinance extends tax liability to individuals and entities that promote or advertise betting operators lacking federal authorization. Those engaged in marketing or distributing services from unauthorized operators may face tax liabilities related to these illegal activities.
In a separate action, Decree No. 13.033, dated June 18, enforces Article 21-A of Law No. 14.790 from December 29, 2023. This decree establishes operational protocols for blocking accounts of illegal fixed-odds lottery operators and facilitates the forwarding of information for investigations and potential asset forfeiture in favor of the Union.
The decree outlines the notification process from the Secretariat of Prizes and Betting to financial and payment institutions, detailing how to block accounts and prevent new transactions that may enable illegal betting operations.
It also ensures due administrative processes, the right to a fair hearing, and the right to a comprehensive defense. Additionally, it mandates the forwarding of information and the initiation of administrative processes to determine asset forfeiture, with seized assets allocated to the National Public Security Fund. This decree took effect immediately upon publication.
Since 2024, the Secretariat of Prizes and Betting has maintained a technical cooperation agreement with Anatel, resulting in the blocking of over 50 illegal domains. They have also reported the removal of 780 profiles and 306 posts promoting illegal gambling, alongside 190 unauthorized applications taken offline, in collaboration with CONAR and the Brazilian Digital Council.