Brazil is tightening its fight against illegal betting by requiring banks and payment providers to identify, report and block transactions linked to unauthorised operators.

Brazil’s Secretariat of Prizes and Betting (SPA) has introduced a new financial surveillance framework designed to disrupt the flow of money to illegal betting operators.

Under Ordinance No. 2,750, banks, fintech companies, payment institutions and payment arrangements will play a central role in identifying and blocking financial transactions connected to unauthorised betting.

The regulation replaces previous rules and establishes a more comprehensive national protocol for detecting suspicious activity, reporting potential violations and preventing illegal operators from accessing Brazil’s financial infrastructure.

Financial institutions given central role

The ordinance requires financial and payment institutions to block transactions involving unauthorised betting operators and monitor transaction patterns that could indicate illegal gambling activity.

Transactions covered by the rules include payments, receipts and transfers carried out through any financial instrument when their purpose is to directly or indirectly facilitate the illegal operation of fixed-odds betting.

Any individual or company offering betting without the necessary authorisation can be classified as an “irregular operating agent”.

Once the SPA issues a formal report establishing suspected irregularities, accounts associated with these operators may be blocked. The report also initiates an administrative procedure that could ultimately result in funds being forfeited to the federal government.

Banks required to detect suspicious patterns

The SPA has identified a range of financial behaviours that institutions should treat as potential warning signs.

These include repeated deposits of small amounts consistent with betting account top-ups, large volumes of transfers from individuals with no apparent commercial relationship with the recipient and companies receiving transaction volumes inconsistent with their declared business activities.

Institutions are also expected to monitor the repeated creation of Pix keys, QR codes or new accounts following previous blocks.

Newly established companies suddenly receiving thousands of microtransactions may similarly trigger scrutiny.

The framework also targets the use of intermediaries, including payment gateways or individuals used to receive funds before transferring them to illegal gambling operators.

When evidence of illegal betting activity is identified, financial institutions must report the case to the SPA by the following business day.

Authorised operator list supports monitoring

To help financial institutions distinguish between legal and illegal businesses, the SPA maintains an updated list of all companies authorised to offer fixed-odds betting in Brazil.

The database can be consulted and downloaded, while an API integration allows banks and payment providers to automate checks against the list.

When the regulator confirms suspected illegal activity, it can issue a blocking notice to the relevant financial institutions together with a report detailing its findings.

Banks must then block accounts belonging to the unauthorised operator where such accounts exist.

They must also prevent new transactions intended to facilitate illegal betting, including transactions involving customers who may not have a direct relationship with the operator.

Consumers attempting to transfer money to blocked accounts must be informed that the transaction has been prevented following an SPA order.

Brazil’s Central Bank will also receive information about each notification for supervisory purposes.

Money laundering and fraud also targeted

The new framework is intended to go beyond simply preventing deposits with illegal betting websites.

The SPA will be able to share non-confidential information about suspected companies with financial institutions, strengthening the ability of authorities and private-sector organisations to identify potential fraud and money laundering.

By involving banks, fintech companies and payment providers directly in enforcement, the government is effectively creating a mandatory financial surveillance network around the regulated betting market.

The system is designed to make it more difficult for illegal operators to disguise transactions through intermediaries, while standardising how suspicious activity is communicated and how accounts are subsequently blocked.

It also strengthens procedures for the potential forfeiture of funds linked to illegal operations.

Brazil expands illegal market crackdown

The measure represents another significant step in Brazil’s efforts to tackle the unregulated betting market following the launch of its federal licensed market.

Licensed operators have repeatedly called for stronger action against illegal competitors, particularly measures targeting the payment infrastructure that allows offshore platforms to continue serving Brazilian customers.

The latest ordinance forms part of the SPA/MF Regulatory Agenda 2026–2027, which sets out the regulator’s priorities across areas including operator authorisation, operational integrity, risk prevention and advertising controls.

Financial disruption now adds another layer to Brazil’s broader enforcement strategy.

The SPA has already taken extensive action against the digital infrastructure used by illegal operators, with approximately 66,000 unauthorised betting domains blocked. Authorities have also removed thousands of irregular profiles from social media platforms.

Ordinance No. 2,750 expands that approach from websites and social media into the financial system itself.

By requiring banks and payment companies to identify suspicious transaction patterns, report suspected illegal activity and execute blocking orders, Brazil is seeking to make access to the country’s financial infrastructure significantly more difficult for unauthorised betting operators.

Source: IGB