Brazil tightens regulations on fixed-odds betting transactions

The Brazilian Ministry of Finance's Secretary of Prizes and Betting has published new regulations regarding financial transactions involving unauthorized betting operators. The ordinance, published in today's Official Federal Gazette, establishes procedures to enforce Article 21 of Law No. 14,790 from December 29, 2023.

The new regulations, Ordinance No. 566 dated March 20, 2025, explicitly prohibit financial institutions and payment providers from opening or maintaining transactional accounts for individuals or legal entities operating fixed-odds betting services without proper authorization. The ordinance defines "transactional accounts" as any deposit or payment account used for receiving funds from bettors, maintaining values related to open bets, or holding winnings.

Under the new rules, financial institutions, payment institutions, and payment arrangement providers must implement procedures to identify individuals and entities operating unauthorized betting services. When suspicious activity is detected, these financial organizations must notify the Secretary of Prizes and Betting within 24 hours through the Electronic Information System (SEI).

The required reporting includes:

• Identifying data of suspicious payment transactions
• Reasons for suspicion regarding the account holder
• Measures taken to block transactions, including account closures
• Detailed account information such as account numbers, tax ID numbers, and Pix keys

The Secretary of Prizes and Betting will maintain and update a list of properly authorized betting operators, those whose authorization requests have been denied, and websites suspected of unauthorized operation that have been referred to the National Telecommunications Agency for domain blocking.

The ordinance explicitly states that good-faith reports will not result in civil or administrative liability for those making the reports. Non-compliance with these regulations may result in penalties under Ordinances No. 1,225 and No. 1,233 of July 31, 2024, in accordance with Articles 41 and 42 of Law No. 14,790.

These new regulations are effective immediately upon publication and are separate from existing anti-money laundering and counter-terrorism financing regulations.