Brazil Sets Process to Recover Illegal Betting Funds

Brazil’s Ministry of Justice and Public Security has introduced a new administrative procedure for handling and potentially recovering funds frozen in connection with illegal fixed-odds betting operations.

The framework was established through Ordinance No. 1,287/2026, dated September 2 and signed by Minister Wellington César Lima e Silva.

The ministry estimates that more than R$1 billion could be linked to irregular betting activities. However, the funds will not automatically become government property. Their transfer will depend on the completion of administrative proceedings followed by a judicial decision confirming forfeiture.

How the Recovery Procedure Will Operate

The National Public Security Secretariat (Senasp) will oversee the process through the Directorate of Management of the National Public Security Fund.

The directorate will receive documentation from the Secretariat of Prizes and Betting at the Ministry of Finance. It will assess the material, open administrative proceedings and issue decisions at first instance.

A Process Instruction Commission consisting of at least three public servants will examine the documentation and prepare a final report for each case.

The affected party will then be notified and given 15 days to submit a defence, documents, evidence and witnesses. An appeal can also be filed within 10 days, with the Minister of Justice and Public Security responsible for reviewing the appeal.

Where an administrative decision supports forfeiture, the case will be sent to the Attorney General’s Office (AGU). The AGU will assess the legal circumstances and determine the appropriate measures required to secure the definitive forfeiture of the funds.

Recovered Funds Could Support Public Security

Once forfeiture has been confirmed by a court, the recovered money can be transferred to the National Public Security Fund for use in public security programmes.

Senasp will recommend how the resources should be allocated in accordance with budgetary and financial requirements and the secretariat’s strategic planning.

Chico Lucas, Brazil’s National Public Security Secretary, said the measure is intended to redirect money associated with illegal activities toward public security.

He said the potential amount exceeds R$1 billion and after the required administrative and judicial procedures, could strengthen the National Public Security Fund and increase investment capacity across the states and the Federal District.

Monitoring and Identification of Other Offenses

The ordinance also establishes monitoring requirements covering frozen amounts, funds undergoing judicial review and resources eventually transferred to the public fund.

The Directorate for Management of the National Public Security Fund will prepare reports and management indicators tracking the administrative and judicial stages of each case.

Authorities involved in the proceedings must also report indications of other possible offenses to the relevant institutions.

Potential criminal activity will be referred to prosecutors and police authorities, while possible tax obligations must be reported to the Federal Revenue Service and the National Treasury’s Attorney General’s Office.

New Framework Creates Legal Route for Fund Transfers

The ordinance establishes a legal framework for potentially moving resources associated with illegal gambling into the public sphere.

Camila Pintarelli, director of Management of the National Public Security Fund, said the measure creates a structured process for removing funds associated with illegal betting and directing them toward public security.

She said the framework is intended to provide a transparent and legally secure route for converting resources linked to harmful practices into funding for prevention, assistance and protection.