After Brazil’s President Luiz Inácio Lula da Silva signed Decree No. 13,033, the country now has a new mechanism for freezing the operations of illegal fixed-odds betting operators.
President Lula Signs Decree
The measure enables the federal government to seek forfeiture of those funds and allocate any proceeds ultimately confirmed through the legal process to the National Public Security Fund for use in combating organized crime. However, the freeze is a precautionary measure rather than a final penalty. Before any further action can be taken, the National Public Security Secretariat must initiate an administrative forfeiture proceeding and provide operators with 15 days to present their defense.
Even a final administrative determination does not conclude the process, as the Attorney General’s Office must still file a court action. Only upon a judicial ruling can the funds be forfeited and transferred. The decree also states that forfeiture cannot take precedence over amounts owed to bettors. It also permits prosecutors, police, and tax authorities to access evidence obtained during the administrative proceedings.
Despite these limitations, the new decree is yet another step in Brazilian authorities’ efforts to combat illegal gambling and further regulate the online sector. President Lula has been a leading figure in these efforts, as on numerous occasions in the past, he has pushed for more regulations in the sector, which has seen fast growth since Brazil legalized fixed-odds sports betting a few years ago.
How Will Authorities Enforce Their New Powers?
Decree No. 13,033 implements Article 21-A of Brazil’s fixed-odds betting law, a provision introduced this year under the Anti-Faction Law. The decree expands enforcement beyond website blocking by assigning the Secretariat of Prizes and Betting (SPA) a formal role in identifying illegal operators and triggering account restrictions.
The secretariat may take action following market surveillance, a well-founded complaint, or information suggesting electronic fraud. Any reported irregularity must specify the operator involved, the relevant websites or applications, the supporting evidence, and the accounts subject to blocking.
Banks, payment institutions, and payment system operators are required to comply with a blocking order within 24 hours of receipt. They must also prevent any new transactions that could facilitate unlicensed activity. Banks also have to confirm compliance with the secretariat within 48 hours after implementing the block.
The Central Bank will be notified of each order and will oversee adherence to the requirements. It and the secretariat also have 90 days to develop a secure electronic notification system. In the interim, notifications will be transmitted through the federal government’s electronic system using digital certification.
In other recent news from Brazil, a federal court has ruled in favor of Aviator Studio in its legal battle against Spribe. Both sides are arguing over the “Aviator” name in a prolonged case that has spanned multiple jurisdictions.