Brazil notifies 37 fintechs for illegal gambling payments
The Secretariat of Prizes and Betting of Brazil's Ministry of Finance and the Receita Federal notified 37 fintechs identified for processing payments for 160 unlicensed sportsbooks. The measure marks a decisive step in the offensive against illegal gambling, by shifting the obligation to financial institutions to interrupt operations and block funds linked to these operators.
The entities have until the end of August to comply with the new requirements. After that, notifications may be accompanied by immediate fund blockages and proceedings before the Ministry of Justice, which will evaluate any non-compliance and apply corresponding sanctions. Fintechs that maintain relationships with unauthorized operators may also be held jointly and severally liable and face fines calculated on the total volume of transactions carried out.
The initiative is supported by the decree signed by President Luiz Inácio Lula da Silva in June, which incorporated mechanisms aimed at preventing the financial flow of clandestine betting. In parallel, the government reported the deactivation of 54,000 websites linked to irregular offers, reinforcing a strategy that seeks to close both player acquisition channels and payment methods used by the illegal market.
Despite these efforts, the government itself estimates that between 41 and 51 percent of betting sites operating in Brazil are illegal, with a user base of 25.2 million people.
Tags: Awards and Betting Secretariat, Federal Revenue, fintech companies, illegal gambling in Brazil, Luiz Inácio Lula da Silva