Brazil extends tax liability to gaming financial institutions
The Brazilian Ministry of Finance published Ordinance No. 17.66 on June 17, 2026, which regulates the joint tax liability of financial entities, payment service providers, and credit institutions that contribute to the irregular operation of betting operators. The regulation implements provisions of Complementary Law No. 224 of December 26, 2025, establishing an operational framework for coordinated supervision and control of the regulated betting sector in Brazil.
Ordinance No. 17.66 defines specific procedures for attributing joint tax liability to financial and payment entities when, after formal notification from the Ministry of Finance, they continue to allow or process transactions intended for betting with unauthorized companies in accordance with Law No. 14.790 of 2023. The framework establishes a coordinated operational communication flow between the Secretariat of Prizes and Betting (SPA) and the Special Secretariat of Federal Revenue (RFB) to identify and block financial channels that facilitate clandestine operations.
Upon receiving formal joint notification from SPA and RFB, financial institutions, payment providers, and credit entities have 24 hours to adopt restrictive measures aimed at preventing new transactions that could facilitate irregular betting exploitation. The restrictive period seeks to generate immediate pressure on financial intermediaries to block cash flows that finance unlicensed operators, reducing the economic viability of clandestine platforms that rely on conventional payment channels.
Brazil's regulatory structure demonstrates a shared responsibility approach where state supervision extends beyond direct betting operators to financial intermediaries who act as critical facilitators of illegal operations. Ordinance No. 17.66 consolidates a system of rapid notification and transaction blocking that indirectly criminalizes financial institutions that remain inactive after formal warning, creating economic and legal deterrents for collaboration with clandestine operators.
In Latin America, the expansion of tax liability frameworks to financial intermediaries represents a strategic evolution in betting regulation. Brazil is advancing through inter-agency coordination between betting and treasury authorities, establishing a model where financial institutions assume active monitoring obligations over customer transactions. The Brazilian ordinance offers a regulatory precedent that other Latin American markets can adapt to strengthen control over financial flows that support illegal operators, thereby consolidating the integrity of the regulated market and the collection of tax revenues derived from legal betting.
Tags: Brazil, LatAm regulation and control, illegal gambling, tax liability