Brazilian President moves to freeze funds linked to illegal betting operators

Brazil’s Federal Government has unveiled a new weapon in its fight against illegal betting, announcing plans to freeze assets linked to unauthorized operators and ultimately redirect confiscated funds to the National Public Security Fund.

“It’s time to block illegal gambling,” Lula wrote on social media. “Alongside Finance Minister Dario Durigan and Justice Minister Wellington César Lima e Silva, I signed a new measure that guarantees the blocking of financial resources belonging to illegal betting companies.”

Under the new framework, the Secretariat of Prizes and Betting (SPA) will be able to notify banks and financial institutions when evidence suggests an operator is offering betting services illegally. 

Financial institutions will then be required to freeze assets linked to the suspected activity while authorities conduct an administrative investigation.

If the investigation confirms wrongdoing, Brazil’s Attorney General’s Office (AGU) may seek court authorization to confiscate the assets and transfer them to the National Public Security Fund.

According to Durigan, the measure is designed to disrupt the financial infrastructure supporting illegal operators while preserving due process protections.

“When we identify an illegality, we will communicate with banks and instruct them to freeze resources associated with these irresponsible betting operators,” he said.

The latest measure also reflects a broader shift in Brazil’s enforcement strategy. Rather than focusing solely on website blocking, regulators are increasingly targeting the financial networks that allow unauthorized operators to continue serving customers.

The move comes amid growing concern over the size of the illegal market. According to figures released by Justice Minister Wellington César Lima e Silva, an estimated 25.2 million Brazilians continue to use unlicensed betting platforms.