Brazil Bans Online Betting Less Than Two Years After Regulation

Brazil has abruptly pulled the plug on its online betting market. President Luiz Inácio Lula da Silva signed Provisional Measure No. 1.394 on September 25, 2026, and it took effect the same day on publication.

The move dismantles a regulated industry that only opened for business at the start of 2025.

What the New Measure Does

The measure bans the operation, offer, intermediation, and advertising of fixed-odds betting. That covers both sports betting and online casino games, and it reaches operators based abroad that target Brazilians. Other governed lotteries are left untouched.

A provisional measure carries the force of law immediately. But it is not permanent on its own: Congress must approve it within 120 days for it to stay in force. The timing is striking, landing less than two years after Brazil’s regulated market opened on January 1, 2025 under Law 14.790, the “Law of Bets” passed in December 2023.

The Shutdown and Withdrawal Timeline

Brazilian bettors have a narrow window to get their money out before sites go dark.

Players will have until 11:59 PM local time on October 5 to withdraw balances, and for operators to remove advertising and sponsorship. The next day on October 6, betting sites and apps will go offline. Over October 7 and 8, operators send any remaining balances, tied to each player’s CPF tax number, to banks. Finally, on October 9 through 14, banks will return those balances to players.

Why the Government Acted

The government is framing this as a public health decision. Finance Minister Dario Durigan said, “We are facing a public health issue involving online betting. It is a serious problem.” Roughly three-quarters of Brazilians support a complete ban, and government figures show 10.9 million people had a risky or problem gambling pattern in 2023.

The money at stake is enormous. The Finance Ministry estimates households spend about R$60 billion (roughly $11.57 billion) each year on online betting, generating around R$10 billion in tax revenue.

There is a political layer, too. The ban arrives about nine days before Brazil’s first-round presidential vote on October 4, with Lula in a tight race against Senator Flávio Bolsonaro, who called the measure “populist, hypocritical and politically motivated.”

What It Means for Operators

Regulated operators are absorbing a heavy loss. Brazil had issued 85 licenses at R$30 million each, or R$2.55 billion in total, with no refunds or compensation on offer and federal licenses ending 30 days after publication. Companies include Flutter Entertainment, bet365, Betano (Kaizen Gaming), Superbet, and Entain, while supplier Evolution draws about 9% of sales from Brazil.

The financial hit is already showing up in guidance. On September 28, Entain warned that its FY26 online net gaming revenue growth would take a hit, with Brazil accounting for about 5% of group online NGR.

Allwyn scrapped its roughly 37% adjusted EBITDA margin guidance, and Betano, for which Brazil is its largest market, is preparing action citing its five-year license dated from January 1, 2025.

For US bettors watching from afar, the contrast is hard to miss. Sports betting is booming across the United States, even as Brazil closes one of the world’s largest markets almost overnight. It is a reminder that regulatory momentum can run in opposite directions, and that a regulated market today is not guaranteed tomorrow.