The Brazilian Ministry of Finance has issued Ordinance 1,766, establishing joint tax liability for financial institutions facilitating illegal betting. The regulation, published on Thursday, requires banks to block unauthorized transactions within 24 hours of notification.
Under the new administrative order, banks and payment entities are responsible for taxes owed by unlicensed online gaming operators. This measure aims to curb clandestine activities by holding financial intermediaries accountable for the operations they support. The joint liability takes effect immediately following formal notification from the ministry.
Notification and Enforcement Procedures
The Secretariat of Lotteries and Betting and the Federal Revenue Service are tasked with notifying institutions. Once alerted, banks have a strict 24-hour window to restrict transactions; failure to comply results in tax liability. The ordinance also extends joint liability to entities publishing advertisements for unlicensed betting, without requiring prior notice.
The regulation aligns with Article 6 of Complementary Law No. 224/2025 regarding unauthorized fixed-odds betting. Notifications will specify the non-compliant operator's CNPJ registration number, the specific financial transaction, and the institution holding the recipient account.