Brazil freezes funds of unauthorized betting operators

• President Lula signed Decree No. 13,033 on June 19, granting authorities the power to freeze and ultimately confiscate funds linked to unauthorized fixed-odds betting operators.
• Banks, fintechs and payment institutions must freeze flagged accounts within 24 hours of formal notification, with confirmed seizures directed to the National Public Security Fund.
• A companion ordinance extends joint tax liability to financial firms and advertisers that continue supporting unauthorized operators after formal notification.

Brazil has moved to cut off the financial lifeline of unauthorized betting operators after Luiz Inácio Lula da Silva signed Decree No. 13,033 on June 19.

The measure gives the government power to freeze and ultimately seize funds held by platforms operating without authorization under the country’s fixed-odds framework.

The move comes as betting volumes climb during the 2026 FIFA World Cup, hosted by the United States, Canada and Mexico, with the government estimating that between 41% and 51% of all domestic betting activity still falls outside the regulated market.

Financial freeze powers

Under the decree, the Secretariat of Prizes and Betting (SPA), a unit within the Finance Ministry, is responsible for identifying unauthorized operators. Once a platform is flagged, banks, fintechs and payment institutions must freeze all linked accounts within 24 hours of formal notification and block further transactions. Institutions then have 48 hours to confirm compliance with the Central Bank, which coordinates the enforcement process.

Authorities may open a case following market monitoring, a formal complaint or evidence of electronic fraud. Funds are first frozen as an administrative preventive measure. If wrongdoing is confirmed through judicial proceedings, assets are transferred to the National Public Security Fund to support action against organized crime.

The decree implements Article 21-A of Law 14,790/2023, as inserted by Complementary Law No. 224/2025 (the Anti-Faction Law). It moves enforcement beyond domain blocking to directly targeting the payment infrastructure that sustains unauthorized operators.

The Finance Ministry has described the approach as “financial asphyxiation.” The SPA and the Central Bank have been given 90 days to establish a secure electronic notification system for enforcement actions.

The announcement came a day after authorities launched Operation Conto da Sorte (Lucky Ticket), targeting an alleged network of unauthorized betting platforms.

Luiz Inácio Lula da Silva, president of Brazil, said:

“We will fight every illegal bet in this country with every possible means.”

Joint liability extended

In parallel, Ordinance MF No. 1,766/2026, dated June 17, regulates joint tax liability under Article 6 of Complementary Law No. 224/2025. It targets banks, payment institutions and payment arrangers that continue processing transactions for unauthorized operators.

From the moment of formal notification by the SPA and the Federal Revenue Service, institutions have 24 hours to adopt restrictive measures. Failure to comply makes them jointly liable for taxes owed by the unauthorized operator. Advertisers and promoters of unauthorized platforms are also subject to joint liability under the ordinance.

The SPA has identified 37 fintechs and payment companies as intermediaries moving money for unauthorized betting operators so far during investigations.

Daniele Cardoso, secretary at the Secretariat of Prizes and Betting, said:

“This front against financial strangulation is extremely important. Law 14,790 already stipulated that payment institutions could not process financial transactions for illegal betting, but, with the Anti-Faction Law, which allowed for the amendment of Law 14,790, we were able to strengthen this process.”

Affected operators are not warned before a freeze is imposed. They retain the right to contest the measure within 15 days. Final asset confiscation requires a court order following judicial proceedings. The decree also explicitly protects winnings lawfully due to bettors from any enforcement action.

Dario Durigan, finance minister, said:

“Now, with the ordinance that imposes joint liability on financial institutions, we will have even more means to combat the illegal market. And the new decree will impose restrictions on transactions involving clandestine bets.”

Brazil has flagged around 50,000 unauthorized domains and approximately 350 operators for blocking or investigation since 2025, through requests made to Anatel, the national telecom regulator.

Officials have repeatedly argued that domain relaunches by unauthorized platforms have made site blocking insufficient, driving the shift to payment-rail enforcement.

With financial institutions, payment processors and fintechs now placed at the center of the enforcement chain, the SPA-Central Bank coordination framework faces its first real test. The next phase will show how quickly the system moves from notification to account freeze.