Brazil Outlines Process to Seize Illegal Operator Funds

Brazil's Ministry of Justice issued an order establishing the procedure for confiscating funds frozen from illegal iGaming operators, with the ministry estimating the total value of such funds at more than $194 million. The order took effect September 4, following its publication in the official gazette, Diário Oficial da União.

Under the new procedure, regulator SPA forwards documentation on frozen accounts to the National Security Secretariat, Senasp, which then notifies the affected operator, granting it 15 days to file objections and submit supporting evidence. Following the administrative stage, the case materials are forwarded to the Attorney General's Office, AGU, which pursues court action to formalize the confiscation, with seized funds ultimately directed to Brazil's National Security Fund.

The procedure establishes a clear administrative and judicial pathway for converting previously frozen illegal operator funds into public revenue, adding a concrete enforcement mechanism to Brazil's broader campaign against unlicensed betting platforms. The scale of funds involved, exceeding $194 million, reflects the extent of frozen assets accumulated through Brazil's ongoing crackdown on illegal gambling operators over the course of the regulated market's development.