Brazil's Ministry of Justice and Public Security has regulated the administrative procedure needed to advance recovery of more than BR1bn ($195m) in funds blocked from illegal betting operators.
Ordinance 1,287/2026, signed by Minister Wellington César Lima e Silva, establishes the ministry's internal workflow for preparatory forfeiture proceedings targeting these funds.
The measure creates the administrative pathway needed for blocked funds from unlicensed fixed-odds betting operators to be incorporated into federal assets and directed to the National Public Security Fund, following due administrative process and a judicial forfeiture ruling.
The process will be run by the National Secretariat of Public Security, through its Fund Management Directorate (DGFNSP), which will receive case files from the Finance Ministry's Secretariat of Prizes and Bets, review documentation, open and process cases, and issue a first-instance administrative decision.
Cases where forfeiture is deemed appropriate will then be forwarded to the Attorney General's Office for judicial action.
National Public Security Secretary Chico Lucas said the regulation creates a path to convert money tied to illegal activity into public security investment.
"We're talking about a potential of more than BR1bn that, once all administrative and judicial steps are completed, could strengthen the National Public Security Fund and expand investment capacity in the states."
The ordinance stresses that an administrative decision doesn't automatically result in forfeiture, which requires a separate judicial ruling.
Recently, Brazil's illegal online betting market shrank in the first half of 2026, with its estimated market share falling from 41%51% to 38%-44%.
DGFNSP director Camila Pintarelli said the ordinance provides legal certainty to the process and ensures funds return to society through public security investment. Once judicially confirmed, funds will be tracked by the DGFNSP.
Brazil’s President Luiz Inácio Lula da Silva indicated that a decision on the future of online sports betting in Brazil could come as soon as this week
