Brazil advances legislation aimed at cracking down on illicit betting operators

(AsiaGameHub) –   Brazil has advanced its efforts to combat illegal gambling with the Chamber of Deputies’ Finance and Taxation Committee approving Bill No. 4.044/2025. This bill aims to establish a comprehensive legal framework to address unlicensed betting activities.

The proposed legislation will build upon the country’s existing betting regulations, outlined in Law No. 14.790/2023, and introduce more stringent measures targeting both illegal operators and financial intermediaries.

Under the proposed legislation, banks, payment services, and other financial service businesses will face enhanced duties of care, or “due diligence.” These duties will include, but are not limited to, improved record-keeping, transaction monitoring, monthly reporting of total transactions, the implementation of internal policies, and the reporting of denied or restricted transactions linked to illegal betting.

Financial institutions will be permitted and required to participate in national fraud prevention systems to facilitate the exchange of information regarding suspected unlicensed betting operators.

Furthermore, the legislation will expand regulatory requirements for Brazil’s payment processing systems, including Pix. This will involve creating new categories for classifying licensed gaming operators, utilizing automated filters based on business type, integrating these measures into risk management and self-exclusion systems, and establishing clearer methods for identifying payments made to gaming operators.

New criminal statutes will also be introduced to address the operation of unlicensed betting businesses. These offenses will carry significant penalties, including fines and imprisonment for individuals involved in unlicensed betting operations and for engaging in unlicensed gambling activities.

Additionally, substantial penalties will be imposed on those who advertise or promote unlicensed betting, interfere with website blocking measures, or otherwise violate the terms of this new law. Penalties will also apply to repeat offenders, those engaging in unlicensed betting on foreign websites, the use of anonymity tools, and advertising directed at children and digital influencers.