Brazil’s Ministry of Justice and Public Security (MJSP) has established a new administrative process. This process aims to pursue the potential forfeiture of more than R$1 billion in funds blocked in connection with illegal fixed-odds betting operations.
The procedure was introduced through Portaria MJSP No. 1,287/2026, signed by Justice Minister Wellington César Lima e Silva on September 2. It was published the following day.
New Process Targets Blocked Betting Funds
The measure establishes a framework for preparing forfeiture cases involving funds linked to irregular betting activity. However, the money has not yet been transferred to the federal government.
Before the funds can become part of the Union’s assets, cases must go through an administrative process followed by judicial forfeiture proceedings. Consequently, any resources ultimately recovered would be directed to Brazil’s National Public Security Fund (FNSP).
The process will be administered by the National Public Security Secretariat (Senasp). This will be done through the Directorate for Management of the National Public Security Fund (DGFNSP).
Administrative Review Comes First
The DGFNSP will receive cases referred by the Ministry of Finance’s Secretariat of Prizes and Betting (SPA). It will also review supporting documentation and conduct the administrative investigation.
Each case will be examined by a commission of at least three public servants. This commission will assess the evidence and prepare a final report. Notified parties will have 15 days to submit a defence, documents, evidence and witnesses.
A first-instance administrative decision can be appealed within 10 days, with appeals reviewed by the justice minister.
If forfeiture is considered appropriate, the DGFNSP will refer the case to the Attorney General’s Office (AGU). The AGU will then assess the legal basis and potential judicial action.
Funds Could Support Public Security
Justice officials stressed that an administrative decision alone does not transfer ownership of the funds to the government. Only a court decision ordering forfeiture can incorporate the resources into the Union’s assets.
National Public Security Secretary Chico Lucas said the potential recovery of more than R$1 billion could strengthen the FNSP. Furthermore, it could increase investment capacity in Brazil’s states and Federal District.
If funds are ultimately transferred to the FNSP, the DGFNSP will monitor their allocation. Meanwhile, Senasp will propose how they should be used under applicable budgetary and financial rules.
Broader Enforcement Against Illegal Betting
The new framework also requires authorities to refer evidence of other potential offences identified during proceedings to the relevant authorities. Consequently, possible criminal conduct may be reported to prosecutors and police, while potential tax violations must be communicated to Brazil’s tax authorities and the National Treasury’s Attorney General’s Office.
The Portaria took effect upon publication. It added another mechanism to Brazil’s broader efforts to target the financial infrastructure behind illegal betting operations.
