Brazilian Government Notifies 33 Financial Institutions for Ties to Illegal Betting Sites

Brazil – May 13, 2025 – www.zonadeazar.com According to Valor Econômico, Brazil’s Secretariat for Prizes and Betting (SPA) has notified 33 financial and payment institutions for processing transactions with illegal sports betting platforms. If the illegal operations are confirmed, the companies could face fines of up to R$2 billion.

The notified institutions have 10 days to respond to SPA’s inquiries. If negligence or bad faith is detected, an administrative proceeding may be initiated, potentially leading to severe penalties.

While the government has not released the names of the entities involved, it emphasized that companies must only engage with betting platforms that are fully authorized under the current regulatory framework.

ABFintech, the association representing Brazilian fintechs, stated that it is essential to partner only with licensed operators. The Brazilian Federation of Banks (Febraban) also expressed concern about the social and economic risks of gambling, particularly regarding potential consumer debt.

Since March 2025, the SPA has required payment institutions to report any suspicious betting-related activity within 24 hours. As a result, several fintechs have ended relationships with unlicensed betting sites. Pay4Fun, for instance, terminated partnerships with over 600 illegal platforms. According to CEO Leonardo Baptista, every partner is subject to a strict KYM (“Know Your Merchant”) verification, checking authorization with the SPA before doing business.

Crackdown on Illegal Betting in Brazil

With Brazil’s official sports betting regulation now in effect, the government has intensified efforts to dismantle illegal gambling operations. To date, SPA has ordered the blocking of nearly 13,000 unauthorized betting websites.

Meanwhile, the Ministry of Finance has received 36 applications for fixed-odds betting licenses. The newly regulated market has already generated more than R$2.16 billion in licensing fees, marking a significant new era for Brazil’s sports betting industry.

Edited by: @_fonta – www.zonadeazar.com