The Brazilian Federal Accounting Court (TCU in Portuguese) and the Central Bank of Brazil (BCB) took relevant actions to combat and prevent illegal online gambling operators in the country.
On one hand, at its extraordinary session on May 19, 2026, the TCU reviewed the findings of an operational audit assessing the government’s efforts to curb illegal operators in Brazil, including the measures currently used to prevent and combat money laundering in connection with fixed-odds betting on virtual games.
The audit identified a number of structural shortcomings and led the TCU to issue recommendations aimed at strengthening the institutional framework for addressing illegal online gambling operators, with a broader role for other public authorities in addition to the Secretariat of Prizes and Betting (SPA in Portuguese).
Key audit findings
The Accounting Court points to a series of deficiencies that undermine both legal certainty in the sector and the effectiveness of enforcement efforts against illegal bets.
Following the audit, the TCU issued a series of recommendations directed to federal authorities. The TCU’s Specialized Audit Unit for National Defense and Public Security (AudDefesa) will monitor implementation and assess the effectiveness of those measures over the coming months.
Find below the main gaps found by the TCU and the table summarizing some of the court’s main recommendations published in our newsletter: TCU audit highlights enforcement gaps in Brazil’s illegal betting market
Bacen´s action
Shortly after the disclosure of the TCU"s decision, the Collegiate Board of Directors of the Central Bank of Brazil (Bacen) issued Resolution BCB No. 569, which amends Resolution BCB No. 343/2023, regulating the sharing of data and information on signs of fraud among financial institutions, as set forth in Joint Resolution No. 6/2023.
The new Resolution takes effect immediately upon its publication in the Federal Register (DOU in Portuguese).
What changes
Resolution BCB No. 569/2026 introduces two significant amendments to the scope of the anti-fraud data-sharing framework:
1. Inclusion of unauthorized online gambling operators within the anti-fraud radar
Data shared among institutions now expressly covers signs that individuals or legal entities are operating as unauthorized online gambling operators, pursuant to Article 24-A, item I, of Law No. 14,790/2023 (Sports Betting Legal Framework).
In addition, a new category of activity subject to data sharing has been created: the provision of financial and payment services to unauthorized online gambling operators (new item VI of Article 2). In such cases, mandatory identification must refer directly to the unauthorized online gambling operators themselves.
2. Inclusion of virtual asset services
The provision of virtual asset services is now listed as a standalone activity subject to mandatory sharing of fraud-related data (new item V of Article 2).
Financial institutions and other covered entities must comply within the following deadlines:
|
Measure |
Deadline |
|
Provision of virtual asset services (Art. 2, V) |
By October 30, 2026 |
|
Provision of financial and payment services to unauthorized online gambling operators (Art. 2, VI) |
By December 1, 2026 |
Market implications and outlook
The audit reinforces that enforcement against Brazil’s illegal betting market remains fragmented and only partially effective.
More effective action against illegal online gambling would benefit not only duly licensed operators, which incur significant compliance costs under the Brazilian regulatory framework, but also other market participants, bettors, and the Federal Government itself, which has a direct interest in increased tax collection and more effective market oversight.
In particular, the TCU’s call for a more effective and proactive role by other authorities, especially the Central Bank of Brazil and the Financial Activities Control Council (Coaf in Brazil), may create momentum for more effective action against companies involved in processing payments for illegal online gambling operators. The Central Bank"s immediate action reinforces this theory, strengthening the oversight framework.
Therefore, TCU’s recommendations and the Federal Government’s broader efforts to enhance the regulatory framework, particularly through the Central Bank the SPA, may support more sustainable growth in the Brazilian betting market while promoting safer offerings of betting products and services.
Click here to access the full text of the TCU’s decision (Ruling No. 1296/2026 – Plenary). Click here to access the Resolution BCB No. 569 (both in Portuguese).
TozziniFreire’s Gaming & E-sports team remains available to discuss the implications of the TCU’s decision and to assist clients in assessing and complying with the regulatory requirements applicable to online gambling operations in Brazil.
