Brazilian Federal Government strengthens efforts to combat illegal betting

 Ordinance MF No. 1.766/2026 establishes joint liability for promoters and financial institutions

On June 18, 2026, the Ministry of Finance published Ordinance MF No. 1.766/2026 , which regulates the joint and several tax liability provided for in Article 6 of Complementary Law No. 224/2025. This regulation is the latest measure in a Federal Government offensive against the illegal betting market and broadens the scope of agents who can be held liable – including, for the first time explicitly, individuals and legal entities that disseminate advertising for unauthorized operators.

The Ordinance establishes two distinct liability regimes:

• Financial and payment institutions

Financial and payment institutions that process transactions for illegal operators become jointly liable for the taxes owed by those operators. Liability is triggered by formal joint notification from the Secretariat of Prizes and Bets (SPA/MF) and the Federal Revenue Service. Following notification, institutions have 24 hours to restrict transactions and 48 hours to report compliance to the Brazilian Central Bank (BACEN).

• Promoters of illegal operators

Digital influencers, affiliates, agencies, and any individuals or legal entities that promote platforms without federal authorization are immediately liable for taxes applicable to the irregular activity, with no prior notification required. Joint liability arises at the moment of promotion. Nonetheless, a tax administrative proceeding will be initiated, with the rights of defense and due process guaranteed.

Also within the package of measures to combat the illegal betting market, the Presidency of the Republic signed, on June 19, 2026, Decree No. 13.303/2026 , which creates mechanisms to block and expropriate resources linked to illegal operators, allocating the confiscated amounts to the National Public Security Fund.

Context of the measures: the regulated market and the persistence of illegal operations

The publication of Ministry of Finance Ordinance No. 1.766/2026 and Decree No. 13.303/2026 are part of a series of measures already taken by the Federal Government – ​​including actions by the Federal Court of Accounts and the National Monetary Council – to maintain and ensure the security of the regulated market.

Since the regulation of the betting market through Law No. 14.790/2023 and SPA/MF Ordinance No. 827/2024, the SPA/MF has already authorized 85 operators to operate legally in the country, subject to tax obligations and rules protecting bettors. Despite this institutional progress, the illegal market persists on a significant scale.

Recent data released by the Brazilian Institute for Responsible Gaming and the Federal Government indicate that 25,2 million Brazilians still use platforms without federal authorization, equivalent to 41% to 50% of all active platforms in the country. The estimated fiscal impact reaches R$ 10,8 billion annually in uncollected revenue.

This situation directly harms licensed operators, who bear high regulatory compliance costs while competing against parties that operate outside the law. Ordinance MF No. 1.766/2026 responds, in part, to a recurring demand from the regulated sector: the adoption of more effective measures to combat the illegal market, which undermines both public revenue collection and the industry’s overall reputation.

Our Gaming & Esports team is available to answer questions and provide legal and strategic guidance on this topic.