Brazilian law establishes joint and several liability for taxes arising from illegal betting

On December 26, 2025, Supplementary Law No. 224/2025 was published in Brazil to establish joint and several liability for third parties in regard to the collection of taxes levied on illegal fixed-odds betting operations.

Notably, Article 6 determines that the following parties will be jointly and severally liable with taxpayers for taxes levied on fixed-odds betting and the net prizes arising from them:

• Financial and payment institutions that, after being formally notified by the competent federal authorities, fail to adopt restrictive measures and allow unauthorized betting operators to carry out transactions related to fixed-odds betting; and
• Individuals or legal entities that disseminate commercial advertising on behalf of unauthorized betting operators.

Brazil’s Ministry of Finance will be responsible for regulating the provisions of this new legislation.

To reduce the risk of being held jointly and severally liable in the situations described above, financial institutions, payment institutions, and companies that disseminate or authorize advertising for betting operators should review their relevant internal investigation policies and procedures to ensure compliance. They should also remain attentive to official communications released by Brazilian authorities.

For more information on the impacts of this new legislation and debates surrounding its legality, please contact Mattos Filho’s Entertainment and Tax practice areas.