The government of Brazil has announced that prediction market contracts connected to sports, politics, and entertainment will be banned effective May 4, 2026.The...
Brazil targets fintech companies linked to illegal betting
The Brazilian government prepares regulatory measures targeting fintech companies suspected of permitting illegal betting activity.
Finance Minister Fernando Haddad confirmed that the Central Bank received information on fintechs that may be acting as links for unauthorized gambling transactions.
In an interview with economist Eduardo Moreira, Haddad said:
“We are already informing the Central Bank about fintechs that are possibly serving as vehicles for organized crime, money laundering, or even worse. There are many things that need to be addressed.”
Haddad added that the Federal Police will be involved in the enforcement efforts. The full package of recommendations will be presented to President Luiz Inácio Lula da Silva after the conclusion of the initial six-month data collection period.
The Ministry of Finance also considers implementing stricter restrictions on betting advertisements, to match them with alcohol and tobacco marketing standards.
Haddad criticized the failure of the previous administration to implement betting laws or enforce taxation, which he said contributed to capital flight and lost revenue.
Haddad further noted:
“For four years, no one regulated advertising, no one collected taxes on bets. More than R$40 billion (US$7.2bn) in subsidies went abroad — they bought crypto, bought dollars through fintechs. That money disappeared from Brazil.”
Haddad mentions another key point, which is this issue of potential regulatory separation of sports betting from online casino gaming.
Brazil’s Federal Government has announced plans to publish a presidential decree that would target online betting and add new restrictions to iGaming in the country.The...
