Banks could be held liable for enabling illegal gambling in Brazil under new law.

Despite raising taxes, the law signed by Lula that alters the rules of the betting sector had aspects applauded by bettors. The assessment within the sector is that the text makes progress by holding accountable actors who enable the operation of illegal bets, but who, until now, were outside the direct reach of regulation, according to information from Guilherme Amado's column on PlatôBR.

The new law expands the fight against illegal gambling in Brazil, also holding financial institutions and payment systems accountable for processing transactions from unauthorized operators.

The new regulation establishes joint liability for banks, financial technology companies, and payment systems that continue processing transactions from unauthorized operators after receiving notification from the Ministry of Finance. President Lula sanctioned Complementary Law No. 224, which, in addition to holding financial institutions accountable, also increases taxation on betting establishments and reduces tax incentives.

Industry data indicates that approximately 40% of bets placed in Brazil still occur on unauthorized platforms. These clandestine companies do not collect taxes nor follow the regulations established by the federal government.

The measure seeks to close the loopholes that allowed these illegal operations to continue, creating more efficient mechanisms to combat them. In addition to directly targeting clandestine companies, the legislation also holds accountable all the infrastructure that enables their operation.

The approved text modifies the taxation on sports betting, known as "bets," gradually increasing the tax rate on gross revenue from the current 12% to 15% by 2028.

According to PlatôBR , legalized sports betting operators welcomed the new law, even with the tax increase foreseen in the legislation. The main point celebrated by these companies is precisely the creation of accountability for institutions that process payments from unauthorized operators.

“The tax increase is not good news. But the law creates responsibilities that come at a good time,” said André Gelfi, director of the Brazilian Institute for Responsible Gaming, summarizing the sentiment of the regulated sector regarding the changes.

The law, however, does not detail how the monitoring of financial transactions will be carried out or what the deadlines will be for compliance after notifications from the Treasury. According to Article 6 of the Law, joint liability also applies to individuals or legal entities that disseminate advertising for betting operators without legal authorization, with the Ministry of Finance being responsible for regulating these provisions.

The proposal arises in a context where the betting market faces multiple proposals for tax regulation, with three bills currently under consideration (PL 5582/25, PEC 18/25 and PL 5.473/25), which directly impact the fixed-odds betting and online gaming sector in Brazil.