Brazil iGaming Demand Falls 20.1% After Betting Ban

Demand for iGaming brands in Brazil fell 20.1% week on week following the country's ban on sports betting and online casino games, according to data from market intelligence platform Blask. 

The decline measures changes in the Blask Index, which tracks normalised online search demand for gambling brands. It does not represent a 20.1% decline in betting turnover, deposits or operator revenue. 

President Luiz Inácio Lula da Silva signed Provisional Measure No. 1,394 on September 25, prohibiting the operation, offering, intermediation and advertising of fixed-odds betting in Brazil. The measure covers sports betting and online games. 

Demand Jumped 41.45% Immediately After Announcement

Brazil's Blask Index initially moved in the opposite direction.

On September 26, one day after the measure was signed, the index increased 41.45% compared with the previous day as interest around the gambling ban surged. The broader weekly reading subsequently finished 20.1% lower. 

Blask said the pattern reflected an initial news-driven increase in searches followed by weaker market demand as the operational shutdown approached.

The index is based on search behaviour, meaning the short-term spike may reflect consumers looking for gambling brands or information about the prohibition rather than an increase in actual wagering.

Licensed Sites Must Go Offline on October 6

New deposits at authorised betting operators stopped on September 25.

Players can withdraw existing balances until 23:59 on October 5, while licensed betting websites and apps must become unavailable from October 6. The prohibition also applies to offshore operators serving customers in Brazil. 

The transition gives the Blask Index another potential inflection point. Search demand after October 6 could provide an indication of whether consumers continue looking for gambling brands once licensed platforms are no longer available, although search data alone cannot establish where players actually gamble.

ANJL and IBJR Ask Supreme Court to Suspend Ban

Brazilian gambling associations ANJL and IBJR have asked the Supreme Federal Court to suspend the provisional measure while Congress and the judiciary consider its future.

Their joint petition asks for a full suspension until Congress acts on the measure or the court rules on the underlying cases. As alternatives, the groups have requested that existing licensed operators be exempted or that companies receive at least six months to wind down their businesses. 

The associations argue that an abrupt shutdown could cause irreversible losses and undermine investments made under Brazil's licensing framework. Those arguments represent the industry's position and remain subject to judicial consideration.

The government's Advocacia-Geral da União has requested time to respond before the Supreme Court decides on the challenges. 

Provisional Measure Still Requires Congressional Approval

The prohibition is already in force, but its long-term status has not yet been settled.

Under Brazil's constitutional framework for provisional measures, Congress must consider the measure within a period of up to 120 days for it to become permanent law. 

For the iGaming industry, the immediate measurable change is a sharp reduction in Blask's search-demand indicator after an initial spike following the announcement. The next significant point will come on October 6, when licensed operators are required to take their platforms offline.