This Friday (19th), the government announced a new front to crack down on illegal betting. A decree signed by President Luiz Inácio Lula da Silva provides for the freezing of resources handled by these platforms. Furthermore, financial institutions that carry out illegal betting transactions will have joint tax liability.
In other words, in practice, the tax authorities will be charged with paying taxes that would be paid if these activities were legal. And this also applies to influencers who promote these platforms.
— If an influencer now enters the social network and advertises an illegal bet, in addition to all the administrative sanctions from the SPA (Prizes and Bets Secretariat), the Federal Revenue Service will charge Income Tax and PIS/Cofins. It’s fair. If the influencer is making money from legal betting, he must pay the income tax on this illegal bet that is abroad — explained the Secretary of the Federal Revenue, Robinson Barreirinhas.
According to Barreirinhas, the strategy is to reach the entire chain that allows clandestine betting to operate. The government’s assessment is that, even when operators are based abroad, Brazilian bettors’ resources pass through national financial institutions before reaching the platforms.
Therefore, fintechs, banks and payment companies that continue to move resources from operators identified as illegal may be called to account for taxes that are no longer collected by bookmakers.
— If this fintech moves bet resources, we will charge that tax that is not paid by bet, we will charge this fintech. We are going to charge Income Tax, PIS-Cofins, contributions destined for the Ministry of Health. This is what this joint responsibility of financial institutions and payment institutions means — said Barreirinhas.
The decree signed by President Lula provides that frozen resources from illegal betting transactions must be sent to the Public Security Fund (FNSP) and will be used to combat organized crime.
According to the Minister of Finance, Dario Durigan, the measure will make it possible to interrupt the financial movements of operators identified as illegal. SPA and the Federal Revenue Service will act to identify irregularities and notify financial institutions for the preventive freezing of resources.
Durigan detailed the measure in an interview with journalists. According to him, the possibility of blocking was included in a decree that regulates the Antification Law, approved by Congress.
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— The decree that the president signed today allows us to block the resources identified in financial institutions that come from these illegal bets — he said. — The financial institution will have to block all accounts that it has identified through which funds from these illegal bets passed. It is an immediate administrative block, which must be confirmed within 48 hours by financial institutions to the Ministry of Finance.
According to the Ministry of Justice, around 25.2 million Brazilians use illegal betting platforms, which represent between 41% and 51% of the regulated market in the country. Currently, around 120 operators are authorized to operate in the sector.
— We are talking about illegal bets representing somewhere between 41% and 51% of platforms that operate legally, which is a relevant number. We have already blocked more than 40 thousand websites. There are 25.2 million Brazilians betting on these platforms — said the Minister of Justice and Public Security, Wellington César Lima e Silva.
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The government also reported that more than 40 thousand irregular websites and applications have already been taken down by the National Telecommunications Agency (Anatel). According to the Minister of Finance, investigations indicate that these platforms would be linked to approximately 350 operators, who use 37 financial and payment institutions, mainly fintechs, to move resources in the Brazilian financial system.
How blocking illegal betting resources will work
The process will begin when the Prizes and Betting Secretariat identifies a company acting without authorization. From there, banks will be notified to block accounts related to the irregular operator.
- Identification of irregularity: the Prizes and Betting Secretariat (SPA) identifies a betting operator that operates without authorization;
- Account blocking: SPA notifies the financial institution to block the company’s accounts; the bank has up to 24 hours to comply with the measure;
- Communication to authorities: the Central Bank monitors compliance with the blockade, and financial institutions inform SPA of account balances and data;
- Right of defense: the case is forwarded to the National Public Security Secretariat (Senasp), which opens administrative proceedings and guarantees a deadline for the company’s defense and appeal;
- Use of resources: blocked amounts can be used to reimburse bettors and pay off outstanding taxes and fines;
- Legal action: the Attorney General’s Office (AGU) asks the Court to forfeit the resources;
- Final destination of the money: after a court decision, the remaining balance is transferred to the National Public Security Fund.
According to the government, the objective is to prevent resources obtained by clandestine operators from continuing to circulate in the financial system and, at the same time, strengthen the fight against organized crime.
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Operation against illegal bets
The announcement was made one day after Operation Conto da Sorte, held in Pernambuco, Ceará and São Paulo. In total, 14 search and seizure warrants were executed to investigate an alleged irregular online betting scheme.
The investigations investigate suspicions of money laundering, gambling, criminal association and crimes against consumer relations. According to investigators, the financial volume moved by the platforms under suspicion could reach billions of dollars.
The investigation originated from technical analyzes by the Prizes and Betting Secretariat following the actions of Lotseridó, an agency created by the city council of Bodó (RN). According to the Federal Revenue, before ceasing its activities, the entity irregularly accredited betting companies, allowing them to continue operating without federal authorization.
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Betting regulation
Online betting platforms now have specific rules in the country after the approval of a law by the National Congress at the end of 2023, sanctioned by Lula. The project was sent by the Ministry of Finance with the initial objective of regulating sports betting, the so-called “bets”, which were already operating in Brazil without regulation.
During the processing in the Chamber, the rapporteur of the proposal, deputy Adolfo Viana (PSDB-BA), included in the text the authorization for so-called “online games”, a category that encompasses virtual casinos such as the popularly known “tigrinho”. The device was restricted by the Senate, which tried to limit the regulation only to sports betting, but the provision was reestablished in the Chamber before the final approval of the law, sanctioned by the president in December 2023.
Almost 700 thousand users have already requested self-exclusion
During his speech to the press, the Minister of Finance informed that almost 700 thousand people have already used the self-exclusion tool created by the government to restrict access to online betting platforms.
Launched in December last year, the system allows the user to request the blocking of the CPF in all authorized betting houses in the country. During the chosen period, the person cannot open new accounts, place bets or receive advertising from companies in the sector.
Exclusion can be requested for periods of one, three, six or twelve months, in addition to the option for an indefinite period. According to the Ministry of Finance, the tool integrates the responsible gaming policy and seeks to reduce the financial and psychological impacts associated with excessive use of platforms.
In addition to the block, the portal offers referrals to mental health services from the Unified Health System (SUS) and information on specialized care for people facing problems related to betting.
