Brazil orders payment firms to report and block unlicensed betting operators

Brazil’s government has ordered financial and payment institutions to report and block transactions linked to unlicensed betting operators, in a move to strengthen oversight of the country’s growing gambling industry.  

The Secretariat of Prizes and Betting (SPA) issued Ordinance 566 on Friday, requiring payment firms to immediately report unauthorized operators and close their accounts. The measure enforces Article 21 of Law No. 14,790, passed in December 2023, which prohibits financial entities from processing transactions for fixed-odds betting operators without proper authorization.  

Under the new rules, financial institutions must verify whether a company is authorized to offer sports betting and online gambling by consulting a government-maintained list. If an entity is found to be operating without a license, the institution must report it to the SPA via the Electronic Information System (SEI) and take action to block or close its accounts.  

A transactional account—defined as any deposit or payment account used to receive bets, maintain betting balances, or distribute winnings—falls under the new restrictions.  

Payment firms are required to submit details of suspicious transactions, including:  

• Account number and linked Pix key (if applicable)  
• CPF or CNPJ of the account holder  
• Date of account opening  
• ISPB code of the issuing institution (for payment cards)  

The SPA clarified that reporting non-compliant accounts will not expose payment firms to civil or administrative liability.  

Authorities signaled strict enforcement of the new rules. If the SPA detects that a financial institution continues to process payments for an unlicensed betting operator, it will demand disclosure of account details and order the termination of business relationships with the operator.  

Brazil’s government has been tightening regulations on its rapidly expanding sports betting and online gambling sector, aiming to eliminate unauthorized operators and ensure tax compliance.