Brazil Expands Liability for Banks and Promoters Linked to Illegal Betting Platforms

Brazil’s Ministry of Finance has published a new ordinance defining joint liability for financial institutions that process transactions for irregular betting platforms, while also warning that individuals and companies promoting illegal operators may be held responsible.

Brazil is tightening its enforcement framework against illegal betting platforms by extending responsibility to financial institutions and third parties that help sustain the unregulated market.

The Ministry of Finance published Portaria MF nº 1.766 on Wednesday, June 17. The measure defines the joint liability of financial institutions that intermediate transactions involving irregular betting platforms. The ordinance was signed by Finance Minister Dario Durigan and forms part of the government’s broader strategy to close financial and promotional channels used by unauthorised operators.

Under the new framework, banks, payment institutions and other financial intermediaries may be held jointly responsible when they process or allow transactions connected to illegal fixed-odds betting operators. The measure strengthens the idea that illegal betting enforcement should not focus only on the operator itself, but also on the infrastructure that allows these platforms to receive deposits, move funds and pay winnings.

The rule also extends risk to individuals and legal entities that promote illegal betting platforms. This means that affiliates, advertising companies, influencers, media channels and other commercial partners may face responsibility if they publicise or support operators that are not authorised to operate in Brazil.

The move builds on Brazil’s existing regulatory framework for fixed-odds betting. Since the regulated market began operating, the Ministry of Finance and the Secretariat of Prizes and Betting have repeatedly warned that only authorised companies may offer betting services in the country. Previous rules already prohibited financial and payment institutions from maintaining transactional accounts for illegal operators or processing deposits and prize payments on their behalf.

The new ordinance gives that policy a stronger fiscal and legal dimension. By linking financial intermediaries and promoters to joint liability, the government is increasing the cost of doing business with unauthorised platforms. It also creates an incentive for banks, fintechs, payment companies and advertising partners to improve due diligence, monitor clients more closely and cut ties with suspicious operators more quickly.

For Brazil’s legal betting market, the measure is important because illegal operators remain one of the biggest challenges for licensed companies. Unauthorised platforms can avoid tax obligations, consumer protection rules, responsible gambling requirements and technical compliance standards, while still competing for Brazilian customers through aggressive online marketing and payment access.

For financial institutions, the message is clear: compliance in the betting sector is no longer limited to checking whether a client has an account. Institutions may need stronger procedures to identify betting-related transactions, verify operator authorisation and respond quickly to official notifications from regulators.

For advertisers and influencers, the ordinance also raises the stakes. Promotion of illegal betting platforms is increasingly being treated not as a simple marketing activity, but as a possible contribution to an unlawful gambling operation. This could reshape how betting advertising is managed in Brazil, especially across social media, affiliate marketing and digital sponsorships.

Brazil’s approach reflects a wider international trend in gambling regulation. Governments are increasingly targeting the financial and advertising ecosystems around illegal operators, rather than relying only on website blocking or direct enforcement against offshore platforms.

If implemented effectively, Portaria MF nº 1.766 could make it harder for illegal betting sites to reach Brazilian consumers, process payments and build visibility online. It also reinforces the government’s broader message: the regulated betting market will depend not only on licensing operators, but also on ensuring that banks, payment providers and marketing partners do not support the illegal market.