Brazil Tightens Crackdown on Illegal Betting

Brazil's Ministry of Finance issued Ordinance No. 17.66 and Decree No. 13.033, obligating banks, payment processors and fintech platforms to block transactions linked to unlicensed betting operators within 24 hours of notification and imposing joint tax liability on institutions that continue such services. The measures target the country's booming illegal betting market, which regulators estimate generates more than R$200 billion annually, largely through the Pix instant‑payment system.

In parallel, the Federal Revenue Service launched Operation Conto da Sorte, a coordinated raid with state prosecutors in Pernambuco, Ceará and São Paulo. Authorities seized documents from 37 companies, froze up to R$145 million in assets and uncovered an illegal betting network moving roughly R$50 billion (about $9.7 billion). The operation highlighted the use of shell companies, money‑laundering schemes and unauthorized municipal accreditation, prompting a Supreme Federal Court ruling that only the national Secretariat of Prizes and Bets may grant betting licences. Together, the financial enforcement rules and the operation signal a zero‑tolerance policy toward illegal gambling in Brazil.