Brazil investigates illegal betting payments with new financial enforcement strategy

Brazil’s Ministry of Finance has intensified efforts to block illegal betting operations by cracking down on unauthorised payment intermediaries.

More than 30 companies have been notified to clarify their operations, in line with a new ordinance. Institutions found moving funds for unlicensed betting platforms could face fines of up to BRL2bn.

While the Government has not disclosed the names of those notified claiming they’re still under investigation, it confirmed that major financial institutions are not involved. Instead, the investigation focuses on smaller payment institutions that process transactions without formal Central Bank approval due to their low volume. These intermediaries have allegedly facilitated cross-border transfers for offshore platforms operating without local licenses, including those based in Curaçao and Asia.

According to the Brazilian Institute for Responsible Gaming, an estimated 50% of betting transactions in Brazil occur in the illegal market. Stake, an international operator, reported to authorities that its name had been used by unlicensed sites. It has identified at least three local intermediaries allegedly responsible for irregular banking activity.

Good to know: This follows other regulatory moves in Brazil, such as a public call for cybersecurity compliance and the ongoing new ruling for responsible betting advertising

Government officials argue that pursuing financial intermediaries is more effective than targeting thousands of unlicensed sites. They note that 13,000 urls have already been blocked but the number continues to grow.

Officials also insist that financial institutions can no longer claim they’re unable to identify illegal betting accounts, mentioning easily recognisable patterns such as spikes in transactions during major sports events.

Carlos Mendez

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Odds tell a story long before the result does. When bettors learn to read that story properly, betting becomes a matter of discipline and value rather than emotion or guesswork.

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