Brazil government sends bill to criminalize online betting and gaming, with 4-6 year prison terms

Brazil’s government has sent a bill to Congress that would turn a range of online betting and gaming activities into criminal offenses, including fixed-odds betting, advertising, payment handling, and certain data-driven marketing. For PSPs and platform operators, the important part is that the proposal reaches beyond operators themselves and into the payment and distribution layer.

1. The bill would create five new criminal offenses to reinforce the ban already established by a provisional measure announced by the government, according to Justice Minister Wellington César Lima e Silva. He said enforcement alone was not enough and pointed to mechanisms adopted in countries including Germany, Belgium, Colombia, and Italy as a reference for adding criminal penalties.
2. Operating or exploiting so-called fixed-odds betting by any means would be punishable by 4 to 6 years in prison plus a fine. The same punishment would apply even if the person had authorization from a foreign authority. The proposal also extends the same penalties to anyone who offers, receives, records, intermediates, provides, or administers betting channels and venues.
3. If approved by lawmakers, the punishment would increase by one-third when the bet concerns a virtual online gaming event, including online casinos such as the popular “jogo do tigrinho.” That is the sort of wording that matters because it does not stop at sportsbook-style products; it also reaches casino-style online gaming.
4. Advertising and promotion would also be criminalized. Making propaganda, advertising, or marketing to encourage betting would carry 2 to 4 years in prison and a fine, and the same sanction would apply to anyone recruiting bettors or monetizing that advertising. The text says this would not apply to journalistic, informational, educational, academic, scientific, or critical content.
5. The bill also targets personal data use and the payments stack. Supplying, selling, or segmenting personal data lists to target betting ads would carry 2 to 4 years in prison, with aggravating factors if the data includes bettors’ loss history, diagnosed gambling disorders, or information on children and adolescents. Institutions or agents handling betting payments, processing, or storage knowing the funds’ origin, as well as developers and distributors of online betting apps and platforms, could face the same 2 to 4 year range.

The ban does not cover lotéricas, which are authorized by law. The government’s decision also covers state and district concessions and authorizations, so this is not just a federal operator issue; it is a broader restriction on the licensing and processing environment.