Brazil bans online betting nationwide as Lula signs a provisional measure

Brazil has introduced a nationwide prohibition on fixed-odds betting after President Luiz Inácio Lula da Silva signed Provisional Measure No. 1,394 on September 25, 2026. The measure prohibits the exploitation, offering, intermediation and advertising of fixed-odds betting across the country. It covers both sports betting and online casino games delivered through physical or digital channels. The rules also apply to fixed-odds operations authorized by state governments and the Federal District.

The measure took effect upon publication and immediately prevents new funds from being added to betting accounts. However, the government has established a transition period designed to allow customers to recover balances held on authorized platforms before access is blocked. Under the announced schedule, bettors can request withdrawals until 11:59 p.m. on October 5, while betting websites and applications are scheduled to be blocked from October 6.

The measure represents a major change for Brazil’s regulated betting market, which began operating under federal authorization on January 1, 2025. The framework was established through legislation including Law No. 14.790/2023, which expanded the fixed-odds system to cover online games and created the legal basis for federal regulation.

Withdrawal timetable gives bettors a limited transition period

The government has set out a specific procedure for the treatment of remaining customer balances. From the date of publication of the provisional measure, no new deposits may be made into betting accounts, apart from narrowly defined transactions necessary for the settlement and return of existing funds.

Finance Minister Dario Durigan outlined the immediate change in access to funds, stating: “As of today, no more money can be deposited into the country’s betting sites. The platforms will remain available so that people and bettors can withdraw their remaining balances until 11:59 p.m. on October 5.”

Under the government’s schedule, betting companies must provide financial institutions with individualized information about bettors and the corresponding balances. The stated timetable calls for this information to be provided on October 6 and 7, followed by the return of funds by banks between October 9 and October 14. Caixa Econômica Federal may become involved where an operational difficulty prevents a standard bank transfer.

The provisional measure also requires operators to preserve sufficient liquidity for refunds. The rules cover available balances, wagers that become void during the closure period and prizes that have already become payable. The legal framework further provides for financial resources earmarked for restitution to remain segregated from the operators’ own assets during the transition.

Advertising and sponsorship face immediate restrictions

The online betting prohibition extends beyond the operation of betting platforms. The measure also prohibits communication, advertising, marketing and sponsorship activities related to fixed-odds betting in Brazil.

New commercial contracts cannot be entered into for betting advertising, sponsorship or promotional activity after the measure takes effect. Materials that were already contracted can remain in circulation during the transition period, with the government stating that existing advertising and sponsorship materials may continue until October 5. The provisional measure requires the removal of relevant physical and digital promotional material within ten days of publication.

This provision could have practical implications for organizations that had commercial arrangements with betting operators. Sports properties, media companies, promotional partners and other businesses that relied on betting sponsorships will need to review existing arrangements in light of the new restrictions.

The legal framework also places responsibilities on internet service providers, application stores and other digital intermediaries. Government authorities may seek the blocking or redirection of websites offering prohibited fixed-odds betting.

Government strengthens enforcement against illegal betting

The policy is not limited to shutting down the regulated market. The government has also announced a broader enforcement structure targeting unauthorized betting activity and related financial transactions.

Under the provisional measure, the Ministry of Finance and Ministry of Justice and Public Security can request the blocking or redirection of websites offering fixed-odds betting. Anatel and the Internet Steering Committee in Brazil have defined roles in implementing administrative blocking orders. The measure also establishes an interinstitutional committee intended to coordinate prevention, monitoring and enforcement against illegal betting activity.

Financial transactions are another central part of the enforcement framework. Banks, payment institutions and other participants in payment arrangements are prohibited from processing transactions intended for fixed-odds betting, except where the transactions are required to conclude existing operations or return customer funds. The Central Bank is also directed to establish systems supporting the rejection and return of transactions connected with illegal betting.

The government has said that several federal institutions will cooperate on enforcement, including the Federal Police, Federal Revenue Service and Financial Activities Control Council. The announced structure is intended to improve coordination between financial, telecommunications and law enforcement authorities.

Proposed criminal rules add another layer

Alongside the provisional measure, the government has sent a bill to Congress proposing new criminal offenses related to fixed-odds betting. The government says the proposed legislation would cover activities such as operating betting services, promoting betting, misusing personal data to recruit bettors, facilitating financial transactions and providing internet applications for prohibited betting.

The bill is distinct from the provisional measure. The betting ban is already in effect under the MP, while the proposed criminal provisions require legislative consideration. This distinction is legally important because the two instruments follow different constitutional and parliamentary processes.

The government has also linked the package to measures addressing household indebtedness, including a new version of the Desenrola debt-refinancing program. The package therefore combines betting restrictions with a wider set of measures concerning household finances and consumer protection.

Lula frames the policy around gambling-related harm

Lula has publicly presented the online betting ban as a response to concerns surrounding gambling-related debt and the social effects of betting. During the announcement, he compared the spread of betting with the early development of crack use in Brazil.

“Some things are shocking. It reminded me a little of the early days of crack in this country. Society was left completely unprotected. This country, which was against casinos and cockfighting, brought the casino into people’s homes,” Lula said.

“I made the decision to take a tough, drastic and necessary measure. It is like a tumor: either we remove it or the tumor kills us,” he added.

These statements are the president’s stated rationale for the policy. The legal text itself establishes the prohibitions, transition arrangements and enforcement mechanisms through the provisional measure rather than through the political language used during the announcement.

Regulated operators prepare for legal challenges

The National Association of Games and Lotteries, known as ANJL, has said it intends to challenge the measure through the courts. The association represents companies involved in legally authorized gaming and lottery operations and has argued that the new policy raises legal and financial issues for operators that entered the Brazilian market under the previous regulatory framework.

One important point concerns licensing payments. Under the federal regulatory framework, each authorization carries a grant payment of R$30 million and is valid for five years. The Ministry of Finance states that an authorization can cover up to three betting brands, with additional authorization payments required for additional brands.

The new MP states that existing concessions, permissions and authorizations for fixed-odds betting will be extinguished after a transition period of 30 days. It also expressly provides that the termination does not create a right to repayment of the authorization payment or compensation from the government under the terms of the measure.

ANJL’s position therefore creates a potential legal dispute over the relationship between the new measure and commitments made under the previous regulatory regime. The outcome of any judicial proceedings could affect how companies, licensing payments and existing contractual arrangements are treated. At this stage, those legal questions remain subject to the relevant judicial and legislative processes.

The provisional measure still faces Congress

Although the measure has force immediately, its long-term status is not settled solely by presidential signature. Brazil’s constitutional framework provides that provisional measures take effect upon publication but must be considered by Congress to remain effective. A provisional measure generally has an initial 60-day validity period that can be extended once for another 60 days when Congress has not completed its examination.

This means the current online betting ban should be understood as an immediately effective legal measure that remains subject to the constitutional legislative process. Congress can approve the proposal, modify it during consideration or allow the measure to lose effect under the applicable rules.

The distinction is particularly relevant for operators, payment companies, consumers and commercial partners because the immediate transition requirements are already applicable while the longer-term legislative position is being determined.

A major reset for Brazil’s betting framework

Brazil’s decision marks a significant reset of the legal structure that governed fixed-odds betting during 2025 and 2026. The previous framework was designed around authorization, supervision, taxation, consumer safeguards and formal compliance requirements. The new measure instead moves the legal position toward prohibition while retaining transition obligations for existing operators and stronger mechanisms against unauthorized activity.

For bettors, the most immediate issue is the withdrawal timetable. For operators, the central questions include the closure schedule, refund obligations, advertising restrictions, preservation of regulatory records and the treatment of authorization payments. For the government, implementation will depend on coordination between financial institutions, telecommunications authorities, regulators and law enforcement bodies.

The next stage will therefore extend beyond the initial announcement. The practical impact of the online betting ban will depend on the execution of the transition process, the handling of customer balances, enforcement against unauthorized platforms and the parliamentary and judicial developments that follow.

Conclusion

Brazil’s online betting ban introduces an immediate and far-reaching change to the country’s fixed-odds betting framework. The provisional measure stops new deposits, establishes a defined period for withdrawals and provides for the blocking of betting websites and applications from October 6. It also removes the legal basis for continued operation by authorized fixed-odds operators while creating additional mechanisms aimed at limiting unauthorized betting activity.

The measure also creates a complex legal transition for businesses that entered the market under the rules established by Law No. 14.790/2023. The government has set out a clear timetable for customer refunds and platform closures, while the industry has indicated that judicial proceedings may follow. At the same time, the provisional measure remains subject to the constitutional process in Congress.

As a result, Brazil’s regulatory position on betting is now in a period of significant legal change. The immediate rules are already operative, but the eventual shape of the market will depend on how the measure is implemented and how Congress and the courts address the issues surrounding its long-term application.

FAQs

What did Brazil’s new provisional measure prohibit?
The measure prohibits the exploitation, offering, intermediation and advertising of fixed-odds betting throughout Brazil. It covers sports betting and online casino games and also applies to relevant operations authorized by states and the Federal District.

When will Brazil’s betting websites be blocked?
The government has announced that betting websites and applications will be blocked from October 6, 2026. Bettors have until 11:59 p.m. on October 5 to request withdrawal of their remaining balances.

Can bettors still withdraw their money?
Yes. The transition rules allow bettors to access the platforms for the purpose of withdrawing remaining balances until the stated October 5 deadline. The government has also established a bank-based refund process for amounts that remain outstanding.

When will banks return remaining betting balances?
The government has stated that betting companies will provide the necessary balance information on October 6 and 7 and that banks will return the funds between October 9 and October 14. Caixa Econômica Federal may assist where standard refund procedures encounter operational difficulties.

Does the measure affect online casino games?
Yes. The provisional measure expressly covers virtual online gaming events within the definition of fixed-odds betting. It therefore extends beyond sports betting.

Does the measure affect state and Federal District betting authorizations?
Yes. The text specifically applies to fixed-odds betting operations in the states and the Federal District and states that relevant state and district concessions, permissions or authorizations will be extinguished under the transition rules.

What happens to betting advertising and sponsorships?
New betting advertising, sponsorship and promotional activity is prohibited immediately. Existing contracted materials can remain during the transition period, with removal scheduled by October 5 under the government’s announced timetable.

What is the role of the National Association of Games and Lotteries?
The National Association of Games and Lotteries or ANJL, represents companies operating in the gaming and lottery sector. Following the announcement, the association said it would challenge the measure through the courts.

What does the R$30 million licensing payment refer to?
Under Brazil’s federal fixed-odds betting framework, an authorization required a R$30 million grant payment and was valid for five years. The Ministry of Finance states that one authorization could cover up to three betting brands.

Is Brazil’s betting ban already permanent?
Not necessarily. The provisional measure is effective immediately but must undergo the constitutional congressional process. Provisional measures generally have an initial 60-day validity period that can be extended for another 60 days if Congress has not completed its consideration.