Brazil’s Ministry of Finance has issued Ordinance 1,766, establishing immediate joint tax liability for financial institutions processing payments for unlicensed online betting operators. The regulation requires banks and payment providers to block related transactions within 24 hours of official notification.
The administrative order, published on Thursday, aligns with Article 6 of Complementary Law No. 224/2025. Financial and payment institutions will now share responsibility for unpaid taxes owed by fixed-odds betting companies lacking federal licenses. The measure aims to restrict unlicensed market activity by shifting collection obligations to the entities handling the funds.
Advertising and Notification Procedures
The ordinance extends joint liability to any individual or legal entity publishing advertisements for unauthorized betting platforms. Unlike financial institutions, advertisers face immediate liability without prior warning. The Secretariat of Lotteries and Betting and the Federal Revenue Service will jointly issue formal notices to payment providers. Each notice must specify the operator’s business name, CNPJ registration number, transaction type, and the account-holding institution.The 24-hour compliance window begins upon receipt of the joint notice. Institutions that fail to restrict transactions within this period will be held financially responsible for the outstanding taxes. The regulatory framework was detailed in the Ministry of Finance's official ordinance.