Brazil Implements New Strategies to Fight Illegal Betting, Including Asset Seizures
In a decisive move to strengthen the regulation of its betting industry, Brazil’s government is stepping up efforts to dismantle underground gambling networks. The latest initiative involves targeted financial actions designed to cut off illegal operators from the country’s banking system. Brazil Illegal Betting
During a recent press briefing, Finance Minister Dario Durigan unveiled a new decree aimed at targeting the financial flows that sustain illicit betting activities. The measure, signed on Friday by President Lula, grants authorities the power to freeze assets and gains linked to illegal bets within financial institutions that process and transfer funds.
Durigan emphasized that the sector is already under the oversight of the Secretariat of Prizes and Betting (SPA). “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,” he explained. This new regulation permits authorities to identify and freeze funds originating from illegal betting operations held in banks, fintechs, and payment providers. Financial institutions will have just 48 hours to act once illegal activity is flagged, or face potential joint liability for the transfers involved.
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The overarching aim, according to Durigan, is to choke off the financial arteries of illegal betting. The government has already been working with agencies like Anatel to block access to illegal websites, which are often linked to a network of fintech firms used for illicit transactions. “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,” he said.
“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,” Durigan added.
The government’s stance is clear: zero tolerance. The plan involves shutting down fintech companies suspected of involvement, ordering them to cease operations, and pursuing asset expropriation. Any funds seized will be funneled into the National Public Security Fund. Minister of Justice Wellington César Lima e Silva underscored the importance of the crackdown, noting that organized crime often shifts into the illegal betting sector to evade law enforcement. “It is essential that the government act strongly against this,” he affirmed.
The decree, according to Wellington, marks a significant step forward in the fight against illegal betting. While initial efforts will focus on cutting off financial support to criminal networks, the Ministry of Justice will oversee the subsequent legal proceedings. “The first step is to cut off the oxygen supply to criminal organisations through financial asphyxiation,” he concluded. Brazil Illegal Betting
