Brazil’s President Signs Decree Targeting Illegal Online Fixed-Odds Betting
Introduction to Brazil’s New Gambling Decree
Brazil has introduced a significant legal measure aimed at curbing illegal fixed-odds online betting. President Luiz Inácio Lula da Silva has signed Decree No. 13,033, empowering authorities to freeze operations and financial assets of unauthorized betting operators in the country.
Details of the Presidential Decree
This new decree allows the federal government to seize funds from illegal betting entities as a precaution while the legal process unfolds. Funds confirmed through this process will be directed to the National Public Security Fund, which supports efforts against organized crime. However, the asset freeze is temporary until the National Public Security Secretariat initiates administrative forfeiture proceedings. Operators will have the opportunity to defend themselves within 15 days before any further legal steps proceed.
Even once an administrative decision is reached, the procedure continues as the Attorney General’s Office must file legal action in court. Only after a judicial ruling can funds be permanently confiscated and reallocated. Additionally, the decree ensures that bettors’ owed amounts are prioritized over forfeiture. Law enforcement, prosecutors, and tax officials are authorized to access evidence gathered during administrative investigations.
This decree is part of Brazil’s broader efforts to regulate and control the expanding online betting market, which has grown rapidly since fixed-odds sports betting was legalized in recent years. President Lula has been a strong advocate for increased regulation to ensure the sector operates within legal parameters.
Enforcement and Implementation of the New Powers
The decree enforces Article 21-A of Brazil’s fixed-odds betting law, introduced under the Anti-Faction Law earlier this year. It grants the Secretariat of Prizes and Betting (SPA) a formal role in identifying illegal operators and initiating account restrictions, moving beyond simply blocking websites.
Actions can be triggered based on market monitoring, credible complaints, or evidence indicating electronic fraud. Reports must clearly identify the operator, relevant websites or apps, supporting evidence, and specify which accounts should be blocked.
Financial institutions such as banks and payment service providers are required to comply with blocking orders within 24 hours and must prevent any new transactions facilitating unlicensed betting activities. They are also mandated to confirm compliance within 48 hours. The Central Bank is notified of these orders and supervises adherence, collaborating with the Secretariat to create a secure electronic notification system within 90 days. Until then, notifications are sent through the federal government’s secure electronic system with digital certification.
Additional Legal Developments in Brazil’s Gambling Sector
In related news, a federal court recently sided with Aviator Studio in a legal dispute against Spribe concerning trademark use of the “Aviator” brand. This ongoing case has involved multiple jurisdictions and highlights the complex legal landscape surrounding Brazil’s gambling industry.
