The Brazilian government has issued a new decree expanding tax liability across the online betting ecosystem. This directly targets financial institutions, payment providers, and advertising entities connected to unauthorized betting operators. Signed by President Luiz Inácio Lula da Silva and published in the Diário Oficial da União on January 30, the measure took immediate effect under Decree No. 12,808/2025.
The regulation represents another decisive step in Brazil’s ongoing effort to strengthen oversight of the rapidly growing fixed-odds betting market.
Stronger Oversight of Irregular Fixed-Odds Betting
The decree focuses on tax obligations arising from the irregular operation of fixed-odds betting. It clarifies that accountability now extends beyond betting operators themselves. According to the government, this broader framework aims to curb the expansion of illegal platforms. It also works to preserve fiscal integrity and protect public revenues.
At the same time, the regulation addresses the reduction or removal of federal tax incentives in cases of non-compliance. As a result, operators and associated entities must now strictly adhere to the federal betting framework. This is to retain access to any tax-related benefits.
Shared Tax Responsibility Defined by Law
Chapter III of the decree formally introduces the concept of shared tax responsibility related to irregular betting operations. Article 16 establishes that multiple parties may be held jointly and severally liable for unpaid taxes and prize payments linked to unauthorized fixed-odds betting.
In particular, financial institutions, payment institutions, and payment initiators face liability. This is if they fail to act after receiving formal notification from federal authorities. The law specifies that responsibility arises when institutions do not implement mandatory restrictive measures within regulatory deadlines. They also face liability if they continue processing transactions for companies lacking federal authorization to operate betting services.
According to the decree, institutions that allow such transactions after receiving official notice will be considered jointly responsible for the resulting tax obligations.
Advertisers and Promoters Brought Into Scope
In addition to financial intermediaries, the decree explicitly extends liability to entities involved in advertising and promotion. This includes individuals and companies that broadcast, promote, or commercially support unauthorized betting operators across communication channels.
Advertising agencies, media organizations, marketing firms, and digital influencers now fall within the scope of enforcement. Consequently, any party that contributes to the visibility, traffic, or commercial activity of illegal betting platforms may be held responsible for taxes generated by those operations. This includes liabilities related to prize payments.
Through this provision, the government signals that responsibility applies across the entire promotional chain. It does not rest solely with betting operators.
Ministry of Finance to Set Enforcement Rules
While the decree is already in force, operational details will follow through a forthcoming ordinance. Under Article 17, the Ministry of Finance, via the Secretariat of Prizes and Betting (SPA), will define procedural requirements, compliance deadlines, supervisory mechanisms, and applicable penalties.
The regulation authorizes the Ministry to establish clear enforcement standards, ensuring consistent application of the new tax responsibility framework.
Brazil’s Broader Push for Regulatory Consolidation
This decree forms part of Brazil’s broader regulatory consolidation efforts that have accelerated since 2023. Authorities have repeatedly emphasized the need to control illegal betting activity. This aims to protect regulated operators and secure tax revenues from the sector.
By extending oversight to financial infrastructure and advertising ecosystems, Brazil is moving away from an operator-only enforcement model. Instead, the country is adopting an ecosystem-wide compliance approach. It reinforces the message that indirect participation in illegal betting activity can now carry significant legal and fiscal consequences.
