The government of Brazil has tightened control over illegal sports betting. President Luiz Inácio Lula da Silva signed Decree No. 12.808/2025, published this Tuesday the 30th in the Official Gazette of the Union, which establishes a new rule: banks, payment platforms, and those who advertise illegal betting houses must now also pay the taxes owed to the state by these unauthorized companies.
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What the new regulation signed by the President of Brazil says
The measure took immediate effect and regulates Complementary Bill 128/2025. The Ministry of Finance, through the Secretariat of Prizes and Bets, will have to publish an additional regulation detailing how the procedures will work, the deadlines to be met, and what sanctions will be applied to those who fail to comply.
The decree also reduces tax benefits granted by the federal government and establishes clear rules on how tax collection related to betting will be charged.
When banks and payment platforms respond
Chapter III of the decree explains who is obligated to pay these taxes. Banks, financial institutions, and companies that process digital payments will be responsible in two specific situations.
The first occurs when the government formally notifies them that a betting house is operating without a permit and they do not take measures to block transactions within the established timeframe. The second occurs when these entities allow transactions with legal entities not authorized to operate fixed-odds betting.
This responsibility includes both the taxes generated by the betting business and those related to the payment of prizes to winners.
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Advertisers are also included
The decree goes beyond the financial system. It also obliges any person or company that advertises illegal betting houses to pay taxes. This directly affects advertising agencies, social media influencers, and media outlets that promote these services without federal authorization.
With this measure, the Brazilian government is changing its strategy: it is no longer just pursuing illegal operators, but is closing the entire circle. It is now targeting those who facilitate their money management and those who give them visibility to attract customers.
What remains to be defined
Article 17 of the decree establishes that the Minister of Finance must create a complementary regulation. This document will precisely specify how these new rules will be applied in practice, what steps the authorities must follow, and what specific sanctions will be faced by those who do not comply.
The decree reflects the government’s concern about a sector that has grown enormously in recent years. By involving banks and advertisers in the responsibility of paying taxes, Brazil is attempting to dismantle the illegal betting business from several fronts simultaneously.
The success of this strategy will depend on how well authorities can monitor compliance and how clear the instructions published by the Ministry of Finance are in the coming months.
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