Brazil’s Ministry of Justice and Public Security has established a new administrative procedure to recover funds linked to illegal fixed-odds betting operators. Authorities estimate that the potential pool of funds could exceed R$1 billion, or approximately $180 million.
The framework was introduced through Ordinance No. 1,287/2026, dated September 2 and signed by Justice and Public Security Minister Wellington César Lima e Silva. The funds will not automatically become state property, as final forfeiture will require administrative proceedings followed by a court decision.
How the recovery process will work
The process will be coordinated by Brazil’s National Public Security Secretariat (Senasp) through the directorate responsible for managing the National Public Security Fund.
Documentation on frozen funds supplied by the Secretariat of Prizes and Betting under the Ministry of Finance will be reviewed by the authorities. A commission of at least three public servants will examine each case and prepare a final report.
The affected party will have 15 days to submit a defence, documents, evidence and witnesses. Administrative decisions can then be appealed within 10 days, with the appeal reviewed by the Minister of Justice and Public Security.
Where a forfeiture decision is upheld, the case will be referred to Brazil’s Attorney General’s Office (AGU), which will determine the legal steps required to obtain a final court order for the forfeiture of the funds.
Recovered funds could go to public security
Once a court confirms the forfeiture, the recovered funds may be transferred to the National Public Security Fund and used to finance public security programmes.
National Public Security Secretary Chico Lucas said the potential amount exceeds R$1 billion. The government intends to use the funds to strengthen infrastructure, technology and operational capacity for law enforcement agencies in Brazil’s states and Federal District.
The new procedure also establishes monitoring requirements covering the funds throughout the process, from the initial freeze through judicial review and final allocation.
Authorities will also examine other offences
Government bodies involved in the proceedings must report signs of other potential offences identified during investigations.
Evidence of possible criminal activity will be referred to prosecutors and police authorities. Potential tax liabilities will be reported to the Federal Revenue Service and the National Treasury’s Attorney General’s Office.
Camila Pintarelli, director of Management of the National Public Security Fund, said the ordinance creates a legally secure framework for taking funds linked to illegal betting out of illicit circulation and redirecting them towards public security.
Brazil has therefore established a formal process that could eventually bring more than R$1 billion ($180 million) in funds linked to illegal betting into the public sector. However, the final forfeiture of individual assets will depend on the administrative process and subsequent judicial determination.
Source: iGaming Brasil
