Brazil establishes process to prosecute illegal betting funds worth over R$1 billion – G3 Newswire

Brazil has established a process to prosecute more than 1 billion reais in illegal betting proceeds

Brazil’s Ministry of Justice and Public Security (MJSP) has introduced an administrative process to pursue the possible confiscation of more than R$1 billion in blocked funds linked to illegal fixed-odds betting operators.

The procedure was created by Portaria MJSP No. 1,287/2026, signed by Wellington Minister of Justice Cesar Lima and Silva on 2 September and published on 3 September.

This measure creates a procedure within the Department of Justice for preparing cases for the forfeiture of funds blocked due to irregular fixed-odds betting activities.

However, the federal government has yet to return the funds. The money must first go through an administrative procedure and then be subject to a court order of confiscation before it can be included in the assets of the Union and transferred to the National Public Security Fund (FNSP).

The Secretariat of National Public Security (Senasp) will manage this procedure through the Directorate for the Management of the Fund for National Public Security (DGFNSP).

The DGFNSP will receive cases referred by the Prize and Stakes Secretariat (SPA) of the Ministry of Finance, evaluate documentation, open and investigate proceedings, and make administrative decisions of first instance.

If the DGFNSP concludes that forfeiture is appropriate, it will forward the case to the Attorney General’s Office (AGU), which will evaluate the legal basis and strategy for the appropriate legal action.

National Public Security Minister Chico Lucas said the new process will create a path to redirect funds associated with illegal activities into public safety investments.

“We are creating a path where money that is moved illegally can come back into the community in the form of public safety,” Lucas said. “We are talking about a potential amount exceeding 1 billion reais, which, once all administrative and judicial stages are completed, could strengthen the National Public Security Fund and increase investment potential in the states and the Federal District.”

Once a case is opened, an investigative committee of at least three government officials will evaluate the documents and evidence and prepare a final report.

Notified parties will be given 15 days to present their defense, documents, evidence and witnesses. They can appeal the decision of the first instance within 10 days, and appeals are considered by the Minister of Justice.

MJSP emphasized that an administrative decision in itself does not lead to the transfer of money to the government. After the administrative stage, the AGU must decide whether to initiate legal action. Only a court decision on confiscation can lead to the inclusion of resources in the assets of the Union.

Any funds ultimately included in the FNSP will be registered and monitored by the DGFNSP. Senasp will suggest how the money within the fund should be used, taking into account budgetary, financial and strategic planning rules.

Where possible, Portaria provides priority consideration for transfers to the states and federal district of Brazil through the mandatory fund-to-fund FNSP mechanism.

The rules also require authorities to report potential evidence of other wrongdoing discovered during the proceedings. Indications of criminal behavior should be reported to prosecutors and the police, and potential tax liabilities should be brought to the attention of the Federal Tax Service and the Attorney General’s Office of the National Treasury.

The Portaria came into force on the date of its publication.