Brazil Tightens Controls on Illegal Betting Transactions

Illegal betting in Brazil just met its biggest obstacle yet.

The Secretariat of Prizes and Bets (SPA) has unveiled Normative Ordinance No. 566—a major regulation targeting payment institutions that process transactions linked to unlicensed gambling operators.

With aggressive compliance rules, strict reporting requirements, and potential fines up to BRL2 billion, this move is a clear signal: Brazil is serious about eliminating the black market in online betting.

Find out what this ordinance means for operators, financial institutions, and Brazil’s growing regulated betting market.

Brazil Cracks Down on Illegal Betting Payments with New Enforcement Ordinance

Key Points:

• Financial institutions must report illegal betting activity to SPA within 24 hours of discovery.
• Non-compliance could trigger fines up to 20% of proceeds, capped at BRL2 billion per violation.
• The regulator prohibits the use of Brazil’s popular Pix system for unlicensed gambling transactions.

The Secretariat of Prizes and Bets (SPA) has taken a major step in Brazil’s ongoing fight against illegal online gambling. On March 21, SPA published Normative Ordinance No. 566, reinforcing the country’s 2023 federal betting law by introducing stringent procedures for financial institutions.

The ordinance aligns with Article 21 of Law No. 14,790, which prohibits financial institutions from processing transactions related to betting platforms without a federal operating license. Brazil’s regulated online betting market officially launched on January 1, 2025, but the black market continues to compete with licensed operators. The new measures aim to stop that.

A Focus on Payment Institutions

SPA’s ordinance requires payment providers to actively monitor for suspicious betting transactions. If they identify any activity linked to an unlicensed gambling operator, they must report it within 24 hours. Reports must include the Individual Taxpayer Registration Number (CPF) of the user and a clear justification for the suspicion.

Once SPA confirms the report, the payment company must terminate its relationship with the illegal operator or customer involved. Failing to do so could trigger serious consequences.

High Stakes for Non-Compliance

Non-compliant institutions can be fined under Normative Ordinances No. 1,225 and 1,233, which define monitoring procedures and sanction protocols. The financial penalties range from 0.1% to 20% of the institution’s proceeds, with a maximum fine of BRL2 billion (roughly USD 351.7 million). That sends a clear message: ignoring illegal gambling isn’t just unethical—it’s expensive.

SPA will maintain a real-time list of licensed and blacklisted operators. This includes rejected applicants and sites forwarded to Anatel, Brazil’s telecommunications agency, for blocking. It gives payment providers a reliable reference point to avoid accidental violations.

A central pillar of this regulation is the prohibition of illegal gambling via Pix, Brazil’s most widely used instant payment system. Overseen by the Central Bank, Pix has become a favored method for gamblers and operators alike due to its speed and convenience. However, illegal sites have exploited this system to bypass traditional banking scrutiny.

SPA’s new directive now forbids using Pix for unlicensed betting, marking a significant step toward weakening the black market’s infrastructure. Pay4Fun director Ari Celia recently told iGaming Business that this measure will likely have the biggest impact on black-market operators.

“If banks are unaware that a client is using illegal betting sites, they’ll shut down those accounts immediately once notified,” said Celia. “And if they don’t, the penalties will follow.”

Wider Impact on the Industry

The regulation also addresses public trust and competitive fairness. Licensed operators, who comply with tax rules and federal oversight, have long complained about unfair competition from illegal platforms. These black-market operators often attract bettors with fewer restrictions, tax evasion, and aggressive marketing.

Moreover, Anatel President Carlos Baigorri admitted that blocking websites is like “mopping up ice.” This analogy highlights the futility of domain bans and bolsters the case for payment blocking as a far more effective deterrent.

The SPA’s Normative Ordinance No. 566 is a critical piece of Brazil’s regulatory puzzle. By compelling financial institutions to identify and report illegal betting transactions—and banning Pix use for unlicensed gambling—the country is tackling the black market at its financial roots. This bold step not only protects consumers but also reinforces the credibility and sustainability of Brazil’s growing regulated betting industry.