Brazil government blocks illegal betting proceeds, redirects to public security fund

President Luiz Inácio Lula da Silva’s administration issued a decree authorising the Finance Ministry and the Justice Ministry to identify and freeze assets of operators that run illegal betting activities. Banks are notified to restrain accounts, the Central Bank is informed and the operators have 15 days to prove the legality of the funds. Unproved amounts are transferred to the National Public Security Fund to support anti‑organized‑crime efforts and reimburse affected bettors.

The move comes as the betting sector accounts for 11.3 % of all digital‑fraud attempts in Brazil, according to a Serasa Experian study, with an estimated loss potential of up to R$ 1.98 billion. Authorities also linked illicit betting to broader retail impacts, health‑related costs and a R$ 38.8 billion annual social burden. Recent raids in Pernambuco, Ceará and São Paulo under the “Conto da Sorte” operation seized assets tied to illegal gambling networks.