Brazil Bans Sports Betting and Online Casino From October 6

Brazil has moved to shut down its regulated sports betting and online casino market after President Luiz Inácio Lula da Silva signed Provisional Measure No. 1,394 on September 25, 2026.

The measure prohibits the operation, offering, intermediation and advertising of fixed-odds betting throughout Brazil. It covers betting on real sporting events and online casino games, including services offered from overseas to customers located in the country. Other lottery products authorised under Brazilian law are not covered by the ban.

The measure entered into force when published in an extraordinary edition of the Official Gazette on September 25. New deposits into betting accounts are prohibited immediately, while customers have until 23:59 on October 5 to withdraw remaining balances.

Betting Sites Will Be Blocked From October 6

Licensed betting websites and apps must become unavailable from midnight on October 6. Brazil's government plans to coordinate the shutdown with Anatel, the Brazilian Internet Steering Committee and app stores.

The legislation also prohibits financial institutions and payment providers from processing transactions connected to fixed-odds betting, except where necessary to close operations and return customer funds. The Central Bank is tasked with establishing mechanisms to reject and return transactions linked to illegal betting.

Existing federal, state and Federal District authorisations will formally expire 30 days after publication of the measure. However, operators must stop providing betting access after the 10-day transition period. No new betting authorisations can be issued from the date of publication.

Open bets that have not been settled before access is discontinued will be voided, with stakes returned in full. Winnings from bets settled before the deadline must still be paid.

Banks Will Return Unclaimed Player Balances

Customers can withdraw their balances directly from operators until October 5.

After the shutdown, operators must prepare individual records showing outstanding balances by CPF, Brazil's individual taxpayer identification number, and provide the information to their banking partners.

The government says operators will submit this information on October 6 and 7, with banks expected to return outstanding funds between October 9 and October 14. Caixa Econômica Federal will handle cases where normal bank transfers cannot be completed.

The provisional measure requires funds owed to players to remain segregated from operators' own assets. Failure to meet the repayment obligations can result in a daily fine of BRL200,000 until the company complies.

Operators Will Not Receive Licence Fee Refunds

Brazil's regulated market opened on January 1, 2025 after operators went through a federal authorisation process administered by the Secretariat of Prizes and Bets.

Each federal authorisation required a BRL30 million payment and was valid for five years, covering up to three betting brands.

Almost 90 companies had obtained licences under the system, according to iGaming Business. The sector has paid more than BRL2.5 billion in authorisation fees since regulation was introduced.

The new provisional measure explicitly states that terminating those authorisations in the public interest does not give operators a right to a full or partial refund of their licence payments or compensation from the government.

That provision is expected to become one of the central legal issues for companies that invested in the regulated market on the basis of five-year federal approvals.

Separate Bill Would Introduce Prison Sentences

The government has also submitted separate legislation to Congress proposing criminal penalties for betting activity. These penalties are not yet law and are separate from the provisional measure that closes the licensed market.

Under the bill, operating, offering, receiving or intermediating fixed-odds bets could carry four to six years in prison plus a fine.

Advertising or recruiting customers for betting, processing betting-related payments, and providing online infrastructure for betting platforms could carry sentences of two to four years, depending on the offence. The proposed financial offence would also cover transactions involving virtual assets.

The provisional measure itself already bans betting advertising, marketing and sponsorship. No new commercial agreements can be entered into, while existing advertising and sponsorship material can remain visible until October 5 under the government's transition timetable.

Betting Industry Prepares Legal Challenges

Brazilian industry groups have criticised the shutdown and are preparing legal challenges.

The National Association of Games and Lotteries said it was taking measures to challenge the provisional measure in court. The association warned that eliminating the regulated sector could reduce tax revenue, affect employment and push customers toward unlicensed operators. The Brazilian Institute of Responsible Gaming has raised similar concerns about migration to the illegal market.

The measure has immediate legal force but still requires congressional consideration. Under Brazil's rules for provisional measures, it initially remains in force for 60 days and can be automatically extended once for another 60 days if Congress has not completed its vote, giving it a maximum ordinary lifespan of 120 days without approval.

If the measure survives the legislative process, Brazil's federally regulated sports betting and online casino market will have operated for less than two years, from January 1, 2025 until the October 2026 shutdown.