Brazil’s Ministry of Justice and Public Security (MJSP) has established an administrative process for pursuing the potential forfeiture of more than R$1bn in blocked funds linked to illegal fixed-odds betting operators.
The procedure was created by Portaria MJSP No. 1,287/2026, signed by justice minister Wellington César Lima e Silva on 2 September and published on 3 September.
The measure creates the Ministry of Justice’s process for preparing forfeiture cases involving funds blocked in connection with irregular fixed-odds betting activity.
However, the funds have not yet been recovered by the federal government. The money must first pass through administrative proceedings and then be subject to a judicial forfeiture decision before it can be incorporated into the Union’s assets and directed to the National Public Security Fund (FNSP).
The National Public Security Secretariat (Senasp) will administer the procedure through the Directorate for Management of the National Public Security Fund (DGFNSP).
The DGFNSP will receive cases referred by the Ministry of Finance’s Secretariat of Prizes and Betting (SPA), assess the documentation, open and investigate the proceedings, and issue a first-instance administrative decision.
Where the DGFNSP concludes that forfeiture is appropriate, it will send the case to the Attorney General’s Office (AGU), which will assess the legal basis and strategy for the relevant court action.
National public security secretary Chico Lucas said the new process would create a route for funds linked to illegal activity to be redirected into public-security investment.
“We are creating a path so that money moved in illegality can return to society in the form of public security,” Lucas said. “We are talking about a potential amount exceeding R$1bn which, once all administrative and judicial stages have been completed, could strengthen the National Public Security Fund and increase investment capacity in the states and Federal District.”
Once a case is opened, an investigative commission comprising at least three public servants will assess documents and evidence and prepare a concluding report.
Notified parties will have 15 days to submit a defence, documents, evidence and witnesses. They may appeal a first-instance decision within 10 days, with appeals considered by the justice minister.
The MJSP stressed that an administrative decision does not itself transfer the money to the government. After the administrative stage, the AGU must decide whether to pursue judicial action. Only a court decision ordering forfeiture can result in the resources being incorporated into the Union’s assets.
Any funds ultimately incorporated into the FNSP will be recorded and monitored by the DGFNSP. Senasp will propose how the money should be used within the fund, subject to budgetary, financial and strategic-planning rules.
Where possible, the Portaria provides for priority to be considered for transfers to Brazil’s states and Federal District through the FNSP’s mandatory fund-to-fund mechanism.
The rules also require authorities to report potential evidence of other offences identified during the proceedings. Indications of criminal conduct must be referred to prosecutors and police, while potential tax liabilities must be communicated to the Federal Revenue Service and the Attorney General’s Office of the National Treasury.
The Portaria entered into force on its publication date.
Brazil’s Ministry of Justice and Public Security (MJSP) has established an administrative process for pursuing the potential forfeiture of more than R$1bn in blocked funds linked to illegal fixed-odds betting operators. The procedure was created by Portaria MJSP No. 1,287/2026, signed by justice minister Wellington César Lima e Silva on 2 September and published on