Brazilian Finance Ministry regulates joint tax liability for institutions that enable unauthorised betting
Brazilian Finance Ministry regulates joint tax liability for institutions that enable unauthorised betting
The federal government has taken a new step in its campaign against Brazil’s unlicensed betting market by placing explicit tax responsibilities on the financial infrastructure that supports it. On 19 June the Ministry of Finance published Ordinance 1,766, dated 17 June 2026, to regulate the joint tax liability regime set out in article 6 of Complementary Law 224 of 26 December 2025, itself part of the anti‑faction package that amended the 2023 fixed‑odds betting law.
The measure targets banks, payment institutions and payment arrangers that continue to process transactions for non‑authorised fixed‑odds betting operators after they have been formally notified by the authorities.
Under the ordinance, the Secretariat of Prizes and Betting and the Federal Revenue Service will jointly notify institutions when they identify irregular operators using their services.
From receipt of the notification, institutions will have 24 hours to adopt restrictive measures to prevent further transactions that facilitate the irregular exploitation of fixed‑odds betting. If they fail to do so and the activity continues, they will be held jointly liable for the taxes on those operations.
The text specifies that notifications will identify the irregular company and provide sufficient information to allow institutions to implement effective blocking measures.
The ordinance also extends the scope of potential joint tax liability to people and entities that advertise or promote operators without federal authorisation.
In a statement the Ministry of Finance said that the federal government is strengthening integrated action against the illegal betting market, making it harder for non‑authorised operators to use the financial system and payment instruments, improving the effectiveness of tax collection and reinforcing the integrity of the regulated betting market.
In parrallel President Luiz Inácio Lula da Silva has signed Decree 13,303, which reinforces the state’s ability to interrupt financial flows, block irregularly obtained funds and disrupt the economic activity of operators outside the regulatory framework, shifting some of the practical burden of suppression from the state to the financial and digital ecosystems that unlicensed operators rely on.
Secretary Daniele Cardoso spoke about the importance of the new measures. “This front against financial strangulation is extremely important. Law 14,790 already stipulated that payment institutions could not process financial transactions for illegal betting, but, with the Anti-Faction Law, which allowed for the amendment of Law 14,790, we were able to strengthen this process,” she said.
