The President of Brazil, Luiz Inácio Lula da Silva, signed Decree No. 12808/2025, which aims to further strengthen the regulation of the Internet lottery market by taxing all financial institutions, payment agencies and advertising service providers associated with unauthorized online lottery companies.
The decree clearly establishes a more transparent liability definition mechanism for tax obligations arising from non-compliance with the “fixed rate” operation, which extends beyond lottery companies. The Government indicated that the initiative was aimed at curbing the growth of illegal gambling sites while preserving financial integrity. In addition, the Act deals with the revision of federal tax incentives and incentives, providing for the need to ensure that public funds are spent in accordance with the requirements and that operators comply strictly with the existing federal regulatory framework. The provisions focus on taxation and liability, and article 16 provides that, in addition to legal persons, the following institutions or individuals may be held liable for “joint and several tax liability” in respect of the payment of taxes and bonuses arising from the illegal performance of a regular rate of compensation. “Financial institutions, payment agencies and the sponsors of payments shall be jointly and severally liable for tax liability if, after notification by the competent federal authorities, they fail to take regulatory restrictions within a specified period of time and continue to permit transactions related to the fixed rate of contribution of unauthorized legal entities.” The Act is unique in that its scope of responsibility extends to the areas of communication and advertising. Article 16 also applies to natural and legal persons who do not authorize the advertising or commercial promotion of lottery operators, including, but not limited to, the content of the media platforms of advertising agencies and the digital network Red and Promotion Partners of marketing companies
Through this article, the Government has made it clear that any person or institution that helps to raise the visibility, traffic or business cooperation of an illegal gambling platform may be considered to be a “co-responsible” in relation to the taxation and the payment of bonuses resulting from an illegal lottery. Article 17 of the Decree gives the Brazilian Ministry of Finance the power to make implementing regulations through the Lottery Superintendence, which includes, inter alia, the penalties applicable to the mechanism for monitoring compliance with specific procedural guidelines. The Act is considered another important step in the continuing advancement of the Brazilian Government since 2023 in the process of legalization, regularization and tax compliance in the lottery sector. The Government ‘ s interest in combating illegal gambling is increasing both to strengthen the healthy development of the legal market and to ensure that taxes in this area are paid in accordance with the law.
With the extension of regulatory mechanisms to financial channels and advertising ecosystems, the Act marks a move from a “only for operators” model to a “accountability for the entire ecological chain”, sending a clear signal that any institution or person directly or indirectly involved in unauthorized lottery activities may bear legal and financial consequences.
