Banks to be Held liable for illegal Gambling in Brazil

Brazil.– September 10, 2025 – www.zonadeazar.com  The Finance and Taxation Committee of the Brazilian Chamber of Deputies has approved a bill making banks and financial institutions responsible for operations linked to illegal gambling.

Overview

This measure marks a significant shift in Brazil’s strategy against illegal gambling. With the approval, banks and fintechs will be required to strengthen their compliance mechanisms, ensuring that unauthorized operators cannot use the financial system to process betting transactions.

The bill now moves to the Chamber’s Plenary and, later, to the Senate, where it could become law before the end of the year.

Proposal details

The Committee ruled that banks will bear joint liability for transactions enabling illegal betting operators.

Key provisions

  • Blocking payments to unauthorized sites and operators.
  • Financial penalties for institutions failing to comply.
  • Mandatory reporting of suspicious activity to COAF (Financial Activities Control Council).
  • Coordination with SPA (Secretariat of Prizes and Betting) to verify licenses.

Industry impact

The decision places the financial system at the core of Brazil’s efforts against illegal gambling. It is expected to foster greater cooperation between banks, regulators, and licensed operators.

Expected outcomes

  • Making it harder for illegal platforms to operate in Brazil.
  • Strengthening tax collection from regulated operations.
  • Increasing transparency and security in betting transactions.
  • Boosting consumer trust in the regulated market.

Future outlook

If enacted, Brazil would adopt a model similar to other jurisdictions where banks act as financial “gatekeepers” against illegal activities.

The proposal also sends a strong message to international operators: only licensed entities will have access to Brazil’s growing market.

Zona de Azar remains the key source for global iGaming news, closely monitoring Brazil’s legislative and regulatory developments.

Editó: @_fonta www.zonadeazar.com

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