Brazil Targets Illegal Betting Funds With Account Freezes and Forfeiture

Brazilian authorities will pursue funds received by betting operators that continue serving the country following its online gambling prohibition, using account-blocking and asset-forfeiture procedures established earlier this year.

Finance Minister Dario Durigan said authorities would identify platforms remaining online, trace their financial transactions and seek confiscation of the money received. His comments accompanied the September announcement requiring betting websites and applications to cease operating from October 6. 

The financial enforcement mechanism comes from Decree 13,033, signed by President Luiz Inácio Lula da Silva on June 19, 2026. It established procedures for freezing accounts linked to unauthorised fixed-odds betting operators and pursuing forfeiture of the blocked funds. 

Banks Face 24-Hour Blocking Deadline

Under the decree, the Finance Ministry’s Secretariat of Prizes and Betting, known as SPA, must formally document an operator’s irregular activity before issuing blocking notices to the relevant financial institutions.

Banks and payment institutions then have up to 24 hours from receipt of the notice to block the identified accounts and prevent new transactions supporting the illegal operation. The Central Bank receives notification to supervise compliance.

The freeze is a precautionary measure. Account holders must be notified after blocking and retain rights to present a defence during the subsequent proceedings. 

Confiscated Funds Would Support Public Security

The National Public Security Secretariat handles the preparatory administrative proceedings. Permanent forfeiture requires judicial confirmation before funds can be incorporated into the National Public Security Fund.

A September Justice Ministry regulation set out how the process would operate, including monitoring amounts frozen, submitted for judicial review and ultimately recovered. The ministry said money actually incorporated into the fund could support public security programmes and transfers to states and the Federal District. 

Agencies Use AI to Trace Illegal Operations

According to Durigan, an interagency team uses artificial intelligence tools to locate betting websites and cross-reference information identifying payment channels and the destination of funds.

The team includes representatives from the Finance and Justice ministries, Federal Revenue Service, Federal Police and telecommunications regulator Anatel. 

Federal Police capacity has also expanded. A ministerial order published on October 13 established DRAME, a division dedicated to illegal betting and sports manipulation, with a betting analysis service.

The division sits within the General Coordination for Combating Money Laundering and Asset Recovery, bringing betting investigations into a structure focused on tracing criminal proceeds and recovering assets.