Brazil to target betting, tobacco sectors in new anti-organized crime operations, source says

BRASILIA - Brazil's government is in the final stages of preparations to launch operations targeting organized crime in the online betting and tobacco sectors, a senior government official with direct knowledge of the matter told Reuters on Monday.

The move follows a strategy to choke off criminal organizations financially, said the source, adding that the plan would not change after the United States decided to designate the country's two biggest gangs as terrorist organizations.

Criminal groups are believed to be involved in cigarette smuggling and the illegal sale of tobacco products, as well as infiltrating unlicensed betting platforms that continue to operate despite regulation of the sector in Brazil.

In both cases, small financial institutions, including fintechs, are allegedly being used by criminals for money laundering, said the source, who asked not to be named because the discussions are not public.

"These operations could take place at any moment," the person said, noting it was still not possible to determine exactly when they would be launched due to the need to coordinate with police authorities, prosecutors and the judiciary.

(Reporting by Bernardo Caram; Writing by Gabriel Araujo; Editing by Joe Bavier)

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This story was originally published June 1, 2026 at 12:44 PM.