Brazilian government blocks illegal betting funds, redirects to security fund

President Luiz Inácio Lula da Silva signed Decree No. 13.033/2026 ordering the immediate blocking of financial resources of illegal betting operators. The measure targets about 350 operators, 50,000 illegal betting sites and 37 financial institutions, requiring banks to freeze accounts within 24 hours and report compliance within 48 hours. Blocked assets will be transferred to the National Public Security Fund to finance the fight against organized crime. The Ministry of Finance said the decree follows the Antifraud Law and will be operationalised by the Secretariat of Prizes and Bets (SPA) and the National Public Security Secretariat, with oversight by the Central Bank and a forthcoming CMN resolution.

The government announced that 25.2 million Brazilians gamble on illegal bets, generating losses of roughly R$ 38.8 billion annually, 80 % of which are health‑related. SPA has already blocked more than 40,000 illegal domains. In a related judicial ruling, the Federal District Court ordered the betting company Sevenx Gaming to return R$ 180.9 thousand to a police officer diagnosed with ludopathy and to pay R$ 4 thousand in moral damages, invoking Law 14.790/2023 which voids bets for addicts.

These actions constitute a coordinated crackdown on the illegal betting market, combining regulatory, fiscal and judicial measures.