Brazil will target illegal betting operators by cutting access to banks, fintechs and payment companies after President Lula signed a new decree on Friday.
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Justice Minister Wellington César Lima e Silva tied the decree to a wider public security concern. He said there is consensus that organised crime has incentives to enter the illegal betting sector.
“It is essential that the government act strongly against this,” he affirmed.
For Wellington, the first step is not just domain blocking or warnings. It is cutting cash access. He said authorities must cut off the oxygen supply to criminal groups through financial asphyxiation.
He also called the decree signed by President Lula “is a major step against illegal betting”.
The Ministry of Justice will follow up on cases after the Secretariat of Prizes and Betting, or SPA, takes the first action.
Finance Minister Dario Durigan presented the decree at a press conference and made clear that financial institutions now sit inside Brazil illegal betting enforcement plan.
The rule allows authorities to freeze assets and gains from illegal bets held by banks, fintechs and payment institutions. Once funds connect to an unauthorised betting company, those firms have 48 hours to freeze them.
Durigan said the regulated market already operates under SPA oversight. The new piece is stronger responsibility for the companies that receive and transfer money for illegal operators.
“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.”
That joint liability point matters. It means payment firms can face consequences when illegal betting operators use their systems to collect or move money.
The government has already found financial routes used by illegal betting sites. Durigan said SPA identified illegal websites and notified Anatel so the sites could be blocked.
After that, officials traced parts of the payment chain and found 37 fintechs linked to financial transactions for illegal operators.
“We are communicating with the federal police, Public Prosecutor’s offices, COAF (Council for Financial Activities Control) and the Federal Revenue Service so they can act against these illegal operations,” commented Durigan.
The next steps can include blocking fintech companies, ordering them to suspend activity and then seeking expropriation of assets. Funds taken from illegal operations will go to the National Public Security Fund.
Durigan said the strategy targets the money behind unlicensed betting.
“This measure decisively strengthens the Brazilian state’s capacity to confront illegal operators. Those who operate outside the law cannot continue using the financial system to sustain clandestine businesses. By blocking the flow of funds in unauthorised betting operations, the regulation targets 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 emphasised.