The Brazilian government has fired its most aggressive shot yet in the war against the unregulated gambling market. In a move that fundamentally alters the risk profile for financial institutions and media companies, President Luiz Inácio Lula da Silva has signed a presidential decree establishing “Joint Tax Liability” for any entity facilitating operations for unauthorized betting operators.
The decree, which entered into force immediately upon publication, effectively recruits banks, payment processors (PSPs), advertising agencies, and digital influencers as involuntary enforcers of the state’s gambling regulations. Under the new rules, if these intermediaries continue to serve unlicensed “Fixed-Odds” betting platforms after receiving notification, they can be held financially responsible for the unpaid taxes and fines attributed to those illegal operations.
This legislative maneuver represents a paradigm shift from targeting the supply (the offshore casinos) to choking the infrastructure (money and marketing). By placing the tax burden on legal, onshore entities, the government aims to isolate the grey market and force rapid compliance with Brazil’s new federal licensing regime.
The Decree: A New Legal Reality
The core of the new decree is the expansion of tax responsibility. Historically, tax evasion charges in the gambling sector were levied against the operator. However, since many illegal operators are shell companies based in jurisdictions like Curaçao or Malta with no assets in Brazil, collecting these taxes was often impossible.
The new decree solves this by targeting the “middlemen” who do have assets in Brazil.
Who is on the Hook?
According to the text reported by BNL Data, the liability extends to two primary pillars of the iGaming ecosystem:
- The Financial Pillar: Banks, credit card issuers, and Payment Service Providers (specifically those processing PIX transactions).
- The Marketing Pillar: Advertising agencies, media networks, web portals, and Digital Influencers.
How “Joint Liability” Works
The mechanism is designed to be punitive. Illegal betting transactions are technically void of regulation and, therefore, formal taxation. However, the state argues that these operations generate revenue that should have been taxed.
If a payment provider processes a deposit for a black-market bookmaker, or if an influencer promotes a bonus code for an unlicensed site, they are viewed as “indirect participants” in the illicit activity. The state can now bypass the elusive operator and seize the equivalent tax revenue directly from the bank or the influencer.
Industry Analyst Note: “This is the nuclear option. A bank might risk a fine for a compliance error, but they will not risk paying the tax bill of a gambling company. This will lead to immediate, widespread over-compliance and blocking of any operator without a .bet.br license.”
Impact on Financial Institutions and Payment Processors
Brazil’s iGaming boom has been fueled by PIX, the instant payment system created by the Central Bank. It accounts for over 90% of all betting deposits. The new decree places a target directly on the backs of the Fintech companies that facilitate these PIX transfers.
The “Notification” Trigger
The decree specifies that liability kicks in if the entity fails to act “after official notification.” This suggests a two-step process:
- The Ministry of Finance (via the Secretariat of Prizes and Bets – SPA) identifies an illegal transaction flow.
- They notify the Payment Service Provider (PSP).
- If the PSP does not block the merchant account immediately, the PSP becomes liable for the taxes associated with those flows.
The “Anubis” Precedent
This move follows the success of Operation Integration and the “Anubis” system developed by the Central Bank, which tracks crypto and betting flows. The government now has the data to identify which payment gateways are serving which operators.
Example Scenario:
- The Situation: A Brazilian bettor deposits R$ 1,000 into “Casino-X” (unlicensed) using a local payment gateway, PayFastBR.
- The Violation: PayFastBR was previously notified that Casino-X is not on the “White List.”
- The Penalty: The Federal Revenue Service (Receita Federal) can now audit PayFastBR and demand payment for the taxes that Casino-X failed to pay on its Gross Gaming Revenue (GGR), arguing that PayFastBR facilitated the tax evasion.
This effectively turns bank compliance officers into tax collectors. Expect major Brazilian banks (Itaú, Bradesco) and specialized PSPs (PayBrokers, AnSpacePay) to implement rigorous “Allow-Lists,” processing payments only for operators listed on the Ministry of Finance’s authorized registry.
The “Influencer” Crackdown: The End of Easy Money
Perhaps the most culturally significant aspect of the decree is the inclusion of Digital Influencers and advertising agencies.
Brazil has a massive influencer culture, with personalities often promoting “Fortune Tiger” and other slot games with little regard for the operator’s legal status. Previously, the maximum penalty was usually a ban from Instagram or a modest fine from CONAR (the advertising standards authority).
Now, the penalty is Tax Liability.
Why This Changes Everything
For an influencer, the risk-reward ratio has shattered.
- Before: Earn R$ 50,000 for a story post. Risk a R$ 5,000 fine.
- Now: Earn R$ 50,000 for a story post. Risk being held liable for the millions in unpaid taxes generated by the traffic sent to the illegal casino.
Example Scenario: A famous YouTuber promotes a “glitch” in an illegal betting app. The video generates R$ 1 million in deposits for the casino. The government deems the casino illegal. Since the casino has no assets in Brazil, the tax authority (Receita Federal) targets the YouTuber, demanding a percentage of the revenue generated as tax compensation, plus penalties for promoting illegal activity.
This aligns with recent federal police operations (like Operation Jack), which seized luxury cars and mansions from influencers promoting scams. The new decree provides the tax code justification to strip assets from influencers promoting the black market.
The Logic: Why Tax the Untaxable?
A legal nuance in the decree addresses a paradox: How can you tax an activity that is illegal?
Technically, bets placed outside the regulatory framework are not subject to the specific “Gaming Tax” (12% on GGR) because they are void contracts. However, Brazilian tax law operates on the principle of “Pecunia non olet” (money does not stink). Income derived from illegal activities is still taxable.
By framing the penalty as a recovery of tax revenue from intermediaries, the government bypasses the need to legitimize the illegal operator. They are essentially saying: “This money flowed through your system. It owes a debt to society. You are the only one we can reach; therefore, you pay.”
The Role of the Ministry of Finance
The decree empowers the Ministry of Finance to draft the specific operational instructions. The market is now waiting for:
- Procedures: How exactly will banks be notified?
- Deadlines: How many hours/days does a bank have to block a merchant after notification?
- Sanctions: What is the calculation formula for the fines?
The Secretariat of Prizes and Bets (SPA), led by Secretary Regis Dudena, is expected to publish these ordinances (Portarias) in the coming weeks.
Market Reaction and Future Outlook
The publication of the decree has sent shockwaves through the iGaming industry in São Paulo and Brasília.
1. The “White Market” Consolidates
Licensed operators (those who have applied for the federal license) welcome the move. Companies like Betano, Sportingbet, and Caixa have long argued that they cannot compete with offshore sites that pay 0% tax while they pay 12% GGR + 34% corporate tax. This decree levels the playing field by making it operationally impossible for the black market to move money or buy ads.
2. The Exodus of the “Grey Market”
Operators who were “waiting and seeing” are now rushing to exit or finding themselves cut off. We expect a wave of “Service Denied” emails from payment processors to non-licensed merchants this week.
3. Media Audits
Advertising agencies are currently conducting emergency audits. Billboards, football jersey sponsorships, and TV spots are being reviewed to ensure every logo belongs to an applicant on the Ministry of Finance’s list. If a football club is sponsored by an illegal bookie, the club itself could theoretically face tax liability under this new interpretation.
Conclusion: The Closing of the Gates
President Lula’s decree is not just a tax collection measure; it is a blockade. By deputizing the banking and media sectors, Brazil has constructed a wall around its regulated market.
For international operators, the message is clear: Get a license, or get cut off. The days of operating in Brazil via an offshore entity with a local payment processor are officially over. For affiliates and influencers, the party has ended—promotion now requires due diligence, or it could cost you your personal assets.
As 2026 approaches, Brazil is establishing itself as one of the most strictly enforced regulated markets in the world, proving that when the state wants to collect its dues, it will find a way to make someone pay.
FAQ: Understanding the New Decree
Does this apply to all betting sites?
No. It applies specifically to unauthorized (illegal) operators. Companies that have applied for a license and are on the Ministry of Finance’s “White List” are considered legal during the transition period.
Can a regular player be fined?
The decree targets providers (banks, affiliates, ad agencies), not the individual bettor. However, bettors using illegal sites risk having their funds frozen if the bank blocks the operator’s account.
When does this take effect?
The decree has been signed and is effective immediately. However, the specific enforcement protocols will be rolled out by the Ministry of Finance in the coming weeks.
What counts as an “Influencer” under this law?
The text refers broadly to “media and digital influencers.” This covers anyone monetizing their audience to promote betting, from massive Instagram celebrities to smaller Telegram tipsters.
