Brazil tightens illegal betting controls and extends liability to banks and advertisers

Brazil’s Ministry of Finance has published Resolution MF No. 1.766/2026 in the Official Gazette, widening the net around illegal betting beyond unlicensed operators themselves. For PSPs, banks, payment processors and ad platforms, the practical message is simple: if you help the flow, the tax and enforcement exposure is no longer someone else’s problem.

1. The resolution does not target only operators running without a license. It also extends obligations to financial institutions, payment companies and advertising actors that facilitate or promote unauthorized betting activity in Brazil.
2. Under the new wording, banks and payment firms that process transactions for unlicensed operators, as well as individuals or legal entities promoting their advertising, can be held jointly liable for applicable taxes tied to both the betting activity itself and the collection of net winnings.
3. The Secretariat of Prizes and Betting (SPA) and the Special Secretariat of the Federal Revenue of Brazil (RFB), both under the Ministry of Finance, will have mechanisms to notify the parties involved and demand a concrete response within a very short deadline.
4. That deadline is 24 hours. Once notified, banks, payment processors or advertising agencies must take restrictive measures to prevent new transactions that directly or indirectly enable illegal betting operations in Brazil.
5. The resolution says the resulting tax liability will be formalized through an administrative tax procedure, which gives the parties involved the right to present objections and mount a full defense. Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL), called the measure an advance for market security, while noting that the fight against illegal betting is ongoing and that the clandestine industry adapts quickly.