Brazil’s Decree No. 13,033 Gives Authorities a New Tool to Freeze Illegal Fixed-Odds Betting Funds

Brazilian President Luiz Inácio Lula da Silva has signed Decree No. 13,033, giving the federal government a new mechanism to freeze operations tied to illegal fixed-odds betting operators and, eventually, pursue forfeiture of funds. For PSPs, banks, and payment institutions, the practical point is obvious: once a blocking order lands, the clock starts running in hours, not days.

1. The decree allows the federal government to seek forfeiture of funds linked to illegal fixed-odds betting, with any amounts ultimately confirmed through the legal process going to the National Public Security Fund for use against organized crime. The freeze itself is only a precautionary measure, not a final penalty.
2. Before any forfeiture can move forward, the National Public Security Secretariat must open an administrative forfeiture proceeding and give operators 15 days to present a defense. Even after that, the process is not finished: the Attorney General’s Office still has to file a court action, and only a judicial ruling can transfer the funds.
3. The decree says forfeiture cannot take priority over amounts owed to bettors, and it also allows prosecutors, police, and tax authorities to access evidence gathered during the administrative proceedings. In other words, a payment freeze is now part of a wider evidence-and-enforcement chain, not a standalone action.
4. The new rules expand enforcement beyond website blocking. Under Decree No. 13,033, the Secretariat of Prizes and Betting (SPA) gets a formal role in identifying illegal operators and triggering account restrictions under Article 21-A of Brazil’s fixed-odds betting law, a provision introduced this year under the Anti-Faction Law.
5. Banks, payment institutions, and payment system operators must comply with a blocking order within 24 hours of receipt and must also prevent any new transactions that could facilitate unlicensed activity. Banks must confirm compliance with the SPA within 48 hours after implementing the block. The Central Bank will be notified of each order and will oversee adherence.

The SPA and the Central Bank also have 90 days to build a secure electronic notification system. Until then, notifications will go through the federal government’s electronic system using digital certification. For operators and their payment chains, that means Brazil is moving from broad anti-illegal-gambling language to a process with deadlines, reporting lines, and a direct hook into financial infrastructure.