Brazil’s licensed fixed-odds betting platforms went offline on October 6 following the expiration of the voluntary withdrawal period under Provisional Measure No. 1.394/2026.
Bettors had until 11:59 p.m. on October 5 to withdraw their funds. Before the shutdown, approximately R$1.33 billion remained across accounts linked to 26.5 million Brazilian taxpayer IDs (CPFs).
The funds will not be forfeited. Financial institutions involved in processing betting payments will return the remaining balances to bettors between October 9 and 14.
R$1.33 Billion Remains
The remaining balance represents a significant reduction from the approximately R$2.1 billion held when the measure took effect.
More than 96% of accounts with positive balances held R$25 or less, while more than 92% held below R$10. However, around 80% of the remaining funds were concentrated in just 1% of accounts, representing approximately R$1.06 billion.
Authorities are also examining 48 accounts containing more than R$500,000 each. Finance Minister Dario Durigan said the accounts are under investigation for potentially suspicious transactions but stressed that a large balance alone does not establish criminal activity.
Banks Handle Refunds
Bettors who missed the withdrawal deadline do not need to submit a new request. Betting operators must provide financial institutions with information about each customer’s remaining balance and payment history.
Banks will return the funds to an account belonging to the same individual. If the original account has closed, the payment can move to another account held by that person.
Caixa Econômica Federal will take over refunds from October 14 when other financial institutions encounter difficulties processing payments.
Ban Faces Legal Challenges
The shutdown also removes licensed betting advertising and sponsorships from the market. The government has instructed affected platforms to redirect users to the official Brasil Sem Bets website and has ordered domains, subdomains, IP addresses and APIs linked to the operators to become unavailable.
The National Association of Games and Lotteries (ANJL) has challenged parts of the government’s implementation, including the redirect requirement. The association has also raised concerns about companies that invested in five-year authorisations and paid taxes under the regulated framework.
Meanwhile, authorities continue blocking illegal betting websites, applications and social media profiles.
The future of Brazil’s betting market remains subject to congressional review of MP 1.394 and legal challenges before the Supreme Federal Court, including cases involving ANJL and the Brazilian Institute of Responsible Gaming (IBJR).
