News

Brazil gives banks 24 hours to freeze illegal betting accounts

Financial institutions will have one day to block accounts linked to illegal betting operators after receiving notification from the Ministry of Finance.

· 1 min read
Share this article
Follow us on Google
AI Summary
Sign in to listen
Illegal websites
Key Points
Banks must freeze illegal betting accounts within 24 hours of notification
Frozen funds may ultimately be transferred to Brazil’s National Public Security Fund

A new ruling requires institutions to freeze accounts linked to illegal betting operations within 24 hours.

Made by Brazil’s National Monetary Council (CMN), the ruling states institutions must act swiftly after receiving a notification from the Ministry of Finance’s Secretariat of Prizes and Betting (SPA).

The resolution, which will come into force on 28 August 2026, applies to current accounts, savings accounts, prepaid payment accounts and registered accounts held by operators identified as offering unauthorized betting services.

The measure follows a decree signed by President Luiz Inácio Lula da Silva authorizing the SPA to issue formal notices identifying illegal betting operations. Once notified, financial institutions must immediately block access to the accounts and prevent transactions involving funds intended, directly or indirectly, for betting activities.

Under the new framework, money held in blocked accounts will remain unavailable while administrative or judicial proceedings are ongoing.

Accounts may be released if an administrative decision ultimately rules in favour of the account holder or after the funds have been converted into a judicial deposit, as provided under the decree.

However, if a court confirms the forfeiture of the assets, financial institutions must close the accounts and transfer the funds to Brazil’s National Public Security Fund.

The CMN, which approved the resolution, is chaired by Finance Minister Dario Durigan and also includes Central Bank President Gabriel Galípolo and Planning and Budget Minister Bruno Moretti.

Earlier this week, the Government introduced Ordinance No. 1,766/2026, extending potential liability beyond unlicensed operators to influencers, advertisers and payment providers that continue supporting illegal betting businesses after official notification.

Good to know

Brazil’s Ministry of Finance recently faced criticism after a responsible gambling social media campaign encouraged consumers to bet responsibly

Reaction Board

News Analysis

View All
DraftKings Sportsbook

DraftKings stock down 27%: Why CEO is defending high predictions spend

During DraftKings' quarterly earnings call, Jason Robins emphasized "discipline and efficiency," coupled with a quick return on the operator's predictions investment with the operator #3 in the market. All with a July 2028 Supreme Court date in mind...

7 min read • • By Tim Poole
GammaSweep Interview: Compliance 2

GammaSweep: Why operators need a more proactive approach to compliance

Gaming firms need to incorporate compliance into their foundation, rather than responding to regulatory changes when they arise.

9 min read • • By Patrick Fasolis
Midterms Predictions Analysis

Have the US Midterm Elections flipped the script on prediction markets?

Following the results of the Midterm Elections and a recent denial witnessed by Kalshi in Nevada, prediction markets could be headed for a final stand-off for their regulatory freedom.

7 min read • • By Kirk Geller

In The News

View All