SPA-MF launches initiative to denounce payment methods involved in illegal betting

The Secretariat of Prizes and Bets of the Ministry of Finance (“SPA/MF”) published Ordinance SPA/MF No. 566/2025, which establishes guidelines for the intermediation of financial transactions related to sports betting and online games. The rule, based on article 21 of Law No. 14,790/2023, imposes restrictions on transactions involving unauthorized operators and expands the control obligations for financial institutions, payment institutions and payment scheme providers.

The regulation determines that financial and payment institutions are prohibited from opening and maintaining transactional accounts, in accordance with Ordinance SPA/MF No. 615, of April 16, 2024, whether owned by physical persons or legal entities that operate the fixed-odds lottery modality without due authorization. It should be noted that a transactional account is any deposit or payment account held at a financial or payment institution, used as a destination for financial contributions made by bettors to maintain the amounts related to outstanding bets or prizes received.

Furthermore, the rule provides that financial and payment institutions and payment scheme providers are prohibited from allowing or processing transactions for the purpose of placing fixed-odds bets with individuals or legal entities that have not received authorization to conduct this activity.

To ensure this control, companies must implement effective internal mechanisms to identify suspicious transactions and prevent them from serving as a channel for intermediaries or atypical financial transactions. If they identify signs of irregularities, institutions will have 24 hours to report the transaction to the SPA/MF, using the Electronic Information System (SEI). The report must contain detailed information about the account involved, the nature of the transaction and the measures adopted to mitigate risks, including those related to the closure or blocking of accounts.

The regulation emphasizes that communication is necessary even in cases where suspicious payment transactions originate from or are destined to a natural or legal person other than the illegal operator, in cases where there are indications that the account is being used as an intermediary by third parties in order to move funds for the irregular operation of the fixed-odds lottery betting modality.

The SPA/MF will maintain an updated public list of duly regularized operators, including those whose authorization requests have been denied, in order to allow financial and payment institutions to carry out more rigorous control of operations linked to sports betting. The regulation imposes a robust set of responsibilities on financial and payment institutions. The measures include verifying the origin and destination of funds – especially for transactions associated with sports betting – and the detailed analysis of atypical or suspicious movements that may indicate the use of funds for unauthorized practices.

In the event of failure to comply with such obligations, the institution may be held liable for facilitating the actions of unauthorized operators, which may result in penalties ranging from fines to revocation of operating licenses, based on SPA/MF Ordinance No. 1,225, of July 31, 2024, and SPA/MF Ordinance No. 1,233, of July 31, 2024, if applicable, under articles 41 and 42 of Law No. 14,790, of December 29, 2023.

Demarest’s Banking, Financial Services, Fintechs and Digital Assets team is monitoring developments on this topic and remains available to assist clients and partners with any necessary clarifications.