Introduced by Congressman Delegado Paulo Bilynskyj (PL-SP), the bill proposes a comprehensive set of financial, technical, and legal measures designed to suffocate unauthorized betting operations. At the same time, it strengthens the regulated betting ecosystem under the supervision of the Secretariat of Prizes and Betting (SPA), offering licensed operators a more secure and predictable operating environment.

Notably, the proposal does not increase the regulatory burden on licensed operators. Instead, it draws a clear line between the legal and illegal markets by redefining the scope and tools of enforcement.

Clear Definition of Unauthorized Operators

Under the approved text, an “unauthorized operator” is defined as any natural or legal person offering betting services without prior authorization from the Ministry of Finance. This definition forms the legal foundation for a broad range of enforcement actions that extend beyond the operators themselves.

The bill allows authorities to hold accountable not only illegal betting platforms but also intermediaries, promoters, payment facilitators, and other parties that contribute to the operation or visibility of unlicensed services, effectively targeting the entire illegal betting ecosystem.

Financial Controls at the Core of Enforcement

A cornerstone of Bill 4044/2025 is its emphasis on financial enforcement. Banks, fintech companies, card issuers, sub-acquirers, and payment service providers will be required to implement filters capable of identifying transactions linked to illegal betting activities.

These institutions must submit monthly reports detailing preventive measures taken, transactions blocked, and risk-mitigation criteria, while respecting data protection and banking secrecy rules. Non-compliance may result in fines of up to BRL 20 million, and in severe cases, the temporary suspension of payment services.

Brazil’s instant payment system, PIX, receives special attention. The Central Bank will be tasked with establishing specific rules to prevent its misuse by illegal betting platforms, including the flagging of suspicious keys, risk-based filters tied to business classifications (CNAE), and ongoing monitoring of transactions linked to official watch lists.

Digital Enforcement and Website Blocking

The bill also expands digital enforcement mechanisms. Internet service providers and telecommunications companies will be required to block domains identified by authorities, using tools such as IP blocking, DNS disruption, mirror-site takedowns, and restrictions on VPN-based access.

Licensed operators, in turn, must implement geolocation tools to block access from jurisdictions where betting is not authorized, reinforcing a clear operational divide between compliant businesses and illegal operators.

Any service provider found to indirectly support illegal betting—such as marketing agencies, software developers, legal consultancies, or digital influencers—may also be held liable, unless the services provided are strictly necessary for obtaining an official license.

Why the New Framework Is Seen as Urgent

Following the regulation of online betting in Brazil, the legal market expanded rapidly. However, this growth was accompanied by a surge in illegal betting sites, many operating from jurisdictions with limited legal cooperation.

These operators often offer aggressive bonuses, evade taxation, and lack safeguards against fraud and money laundering, exposing consumers to significant risks. Lawmakers argue that without a stronger legal framework, the regulated market would be undermined and consumer protection severely weakened.

Expected Impact and Legislative Next Steps

If enacted, the new framework is expected to make illegal betting operations economically unviable, significantly reducing their presence in the market. It could also accelerate market consolidation around licensed operators and enhance cooperation among regulators, financial institutions, and compliant businesses.

The bill must still pass additional committees, including Finance and Constitution and Justice, before reaching the Chamber’s plenary and ultimately the Senate. A key challenge ahead will be ensuring that the State has sufficient technical and operational capacity to enforce the new rules effectively, while preserving a competitive and attractive legal betting market.