Brazil Expands Financial Enforcement Against Illegal Betting Operators

Brazil's Ministry of Finance has released Ordinance No. 17.66, effective June 17, 2026, establishing enforcement procedures that hold financial institutions, payment processors, and payment scheme operators jointly liable for facilitating transactions linked to unauthorised sports betting operators. The ordinance represents a significant escalation in the country's efforts to combat illegal gambling activity through the financial system.

By targeting the financial infrastructure that enables illegal operators, Brazil is adopting a multi-layered enforcement strategy. Rather than pursuing only the betting operators themselves, the ordinance creates accountability for intermediaries—banks, fintech firms, and payment networks—that process transactions for unlicensed platforms. This approach aims to disrupt the cash flow supporting illegal operations and incentivises financial institutions to implement stricter compliance controls.

The move reflects Brazil's broader regulatory ambitions as it works to establish a licensed, regulated sports betting market. By penalising financial enablers of illegal activity, authorities hope to channel betting activity toward authorised operators and generate tax revenue. The ordinance also signals to financial institutions that due diligence on betting-related transactions is now a compliance priority, potentially raising operational costs for those processing high-risk payments.