Brazil sets guidelines for payment firms to engage with undocumented workers
New and Tougher Rules for Online Betting in Brazil
It's no joke that illegal gambling platforms operating offshore are now banned from servicing Brazil, as revealed by Next.
Say goodbye to these shady operators, because they won't be processing transactions, be it winners’ payouts or savings storage.
In a timely move, financial institutions and payment providers caught dealing with unauthorized companies have only 24 hours to notify the regulator.
The head of the regulator, Regis Duden, made it clear: "This new action, coupled with the removal of unlawful websites and their advertisements, will give a significant boost to our fight against the rogue operators intent on flouting the rules and protecting players."
If the watchdog spots an illegal transaction, the payment provider must terminate their services immediately and close the illegal company's accounts. They must also inform the regulator about the steps taken to prevent such situations in the future. Failure to comply or procrastination may result in a hefty fine.
It's important to note Brazil's legal online betting market started on January 1 this year.
As for the broader picture, in 2025, Brazil's regulatory authorities have beefed up their enforcement against unlicensed operators and aimed to safeguard players by implementing several measures:
Licensing and Compliance EnforcementOperators are required to fulfill stringent criteria, which include a R$30 million licensing fee, technical certifications for betting systems, and proof of anti-money laundering measures[1][3]. Companies such as 7MBR faced temporary suspension for failing to meet the requirements but eventually regained their licenses post-compliance[3].
Consumer Protection RegistrationsAll operators must now pop up on a government platform called Consumidor.gov.br, which handles consumer complaints, thus enriching transparency and creating a direct channel for dispute resolution[4].
Advertising RegulationsThe Brazilian Council for Self-Regulation in Advertising enforces Annex X rules, mandating truthful portrayal of betting risks and barring the targeting of vulnerable groups[1][4].
Player MonitoringThe Ministry of Finance keeps an eye on bettor CPF (tax ID) numbers to detect gambling addiction patterns and prevent fraud[1]. Player winnings exceeding BRL 2,824 (~USD 547) are subject to a 15% income tax to curb excessive gambling[1].
Ongoing Regulatory ActionsThe Secretariat of Prizes and Betting (SPA) is actively suspending non-compliant operators, as demonstrated by TQJ-Par's delayed authorization and Pixbet's temporary license revocation[3]. These efforts aim to eliminate gray-market operators and standardize industry practices.
- The ban on offshore gambling platforms serving Brazil is resulting in the elimination of shady operators from processing transactions, whether it's winners' payouts or savings storage.
- Financial institutions and payment providers found dealing with unauthorized companies now have only 24 hours to notify the regulator about this activity.
- Regis Duden, the head of the regulator, stated that the new action will significantly boost the fight against rogue operators who flout the rules and protect players.
- If an illegal transaction is spotted, payment providers must immediately terminate their services and close the illegal company's accounts, also informing the regulator about steps taken to prevent such situations in the future.
- Compliance failures or procrastination may lead to hefty fines.
- Brazil's legal online betting market emerged on January 1 this year, and in 2025, the regulatory authorities aim to safeguard players by implementing measures such as licensing and compliance enforcement, consumer protection registrations, advertising regulations, player monitoring, and ongoing regulatory actions. These actions are designed to eliminate gray-market operators, standardize industry practices, and protect consumers in the banking-and-insurance, fintech, policy-and-legislation, and general-news sectors.
