Brazil has suspended the regulated online betting and casino market after President Luiz Inácio Lula da Silva signed Provisional Measure No. 1,394 on September 25.
The measure prohibits the operation, offering, intermediation and advertising of fixed-odds betting nationwide, covering both sports betting and online casino games. It also applies to state and federal district authorisations. The measure took effect immediately, although it must pass through Congress to remain permanently in force.
Betting Market Faces Immediate Shutdown
Licensed operators can no longer accept new deposits. Players have until October 5 to withdraw their remaining balances, while betting websites and apps are scheduled to go offline from October 6.
Operators must provide financial institutions with details of outstanding player balances between October 7 and 8. Banks will then return the funds to customers between October 9 and 14. If banks encounter difficulties after October 14, Caixa Econômica Federal will handle the remaining refunds.
The measure also requires operators to remove physical and outdoor advertising and sponsorship material by October 5.
Government Cites Household Debt
The government has linked the decision to concerns over gambling-related household debt and consumer protection.
Finance Minister Dario Durigan said previous regulatory measures had not sufficiently addressed the financial impact of betting. The government has simultaneously introduced a debt-relief programme targeting up to R$150 billion in household debt.
The Ministry of Health described the measure as covering both sports betting and online games, while the government said it would strengthen efforts against illegal betting following the closure of the regulated market.
Industry Prepares Legal Challenges
The decision has triggered opposition from licensed operators and industry associations, which argue that companies invested heavily after Brazil established its regulated market.
Industry groups have warned that the ban could reduce tax revenues, affect employment and redirect consumers toward unauthorized operators. Several companies and associations are preparing legal challenges.
International operators have also begun assessing the financial impact. Flutter Entertainment and Entain warned that the Brazilian restrictions could affect their 2026 results, while other companies with Brazilian exposure are reviewing their outlooks.
Ban Creates Regulatory Uncertainty
The measure represents a major change less than two years after Brazil’s regulated online betting framework took effect.
Under the new rules, existing federal, state and district authorisations for fixed-odds betting will be terminated according to the timetable established by the provisional measure. The measure also creates a framework for coordinating enforcement against illegal betting activity.
However, the prohibition is not yet a permanent change in Brazilian law. Provisional measures take immediate effect but require congressional consideration, leaving the future of Brazil’s regulated betting market subject to the legislative process and potential legal challenges.
