Brazil Issues Decree to Freeze Funds of Illegal Online Betting Operators

Overview

• The decree, signed Friday, June 19, creates an administrative process under the Secretaria de Prêmios e Apostas that notifies banks and payment firms to block accounts linked to identified illegal bets within 24 hours.
• Blocked funds are to be held during administrative proceedings and may be sent to the Advocacia-Geral da União for court actions that could convert assets into transfers to the National Public Security Fund.
• The government extended fiscal and civil responsibility to banks, payment companies, advertisers and influencers and said the Receita Federal will tax promoters who profit from illegal bets.
• Officials say the measures build on a campaign that has already removed roughly 50,000 illegal sites, opened more than 130 administrative cases and tied clandestine platforms to about 350 operators using some 37 financial institutions.
• Enforcement is ongoing after recent police probes such as Operação Conto da Sorte, and regulators are preparing Banco Central and CMN rules to operationalize freezes while preserving administrative rights to defense and appeal.