Brazil’s Finance Ministry sets 24-hour blocking rule for banks and PSPs tied to illegal betting

Brazil has published Ordinance No. 1,766, putting banks, financial institutions, and payment institutions on the hook for taxes owed by operators running fixed-odds betting without a federal licence. For PSPs and acquirers, the practical point is simple: once the Ministry of Finance notifies you, the clock starts, and it’s 24 hours to block new transactions.

1. Under Ministry of Finance Ordinance No. 1,766, financial and payment institutions can be held jointly and severally liable for the tax debt of illegal online betting and gaming operators in Brazil. The measure takes effect immediately and is tied to Article 6 of Complementary Law No. 224/2025, which covers the unauthorised operation of fixed-odds betting.
2. The Ministry says the liability kicks in after formal notification. The Secretariat of Lotteries and Betting (SPA) and the Federal Revenue Service will issue a joint notice, and the institution then has 24 hours to adopt restrictive measures to prevent new transactions intended to facilitate, directly or indirectly, illegal fixed-odds betting.
3. The notice must identify the operator involved, including the company name and CNPJ registration number, the financial transaction made in favour of the non-compliant operator, and the financial or payment institution holding the recipient account. If the ministry includes other identifying information, that also has to be used to implement the block.
4. The ordinance also extends joint and several liability to individuals and legal entities that publish advertisements or promotional material for illegal betting operations. In that case, no prior notice is required, which makes the ad-and-affiliate side of the ecosystem even less forgiving than the payments side.
5. The government’s stated aim is to curb clandestine activity and stifle unlicensed operations. For payment providers, that means Brazil is now making the compliance perimeter explicit: if you process for an unlicensed fixed-odds operator after notification, the state says you can be treated as part of the tax problem, not just the plumbing behind it.