Brazil Bill Would Make Banks Cover Illegal Betting Losses if Checks Fail

Deputy Jorge Goetten’s Bill 5587/2026 seeks to amend Law 14,790/2023. It covers bets placed with operators lacking Brazilian authorization and introduces a right to recover net losses.

Banks Would Need to Have Broken Payment Rules

The operator would be first in line to repay the player. A bank or payment institution could share that liability if it processed transactions without meeting its legal duties to prevent or block illegal betting payments.

The proposal sets out three points:

• Refund amount. Deposits to the illegal operator minus money received back during the claim period;
• Bank liability. Shared responsibility where required payment controls were not followed;
• Recovery. Banks that compensate players could seek the money back from the operator.

Brazil’s June 19 decree already gives payment institutions 24 hours to block identified illegal operators’ accounts after receiving a regulator’s notice. Goetten’s bill adds a possible financial consequence for failures in that control system.

October Refunds Covered Balances, Not Losses

The filing came one day after banks were scheduled to finish repaying funds left on betting platforms following Brazil’s September gambling ban. Under the government’s shutdown timetable, players could withdraw their remaining balances until October 5. Sites went offline from October 6, with bank refunds scheduled for October 9-14.

The government had identified R$1.325 billion ($266.6 million) held for 26.5 million bettors, as 15M reported on October 7. The distinction is in the money being returned. October’s process concerned unused balances and unpaid amounts at previously licensed platforms. Goetten’s bill instead addresses losses already incurred with unauthorized operators.

The text leaves the claims process, proof requirements and payment procedures to future regulations. It has not yet been assigned to congressional committees.