Brazilian President Luiz Inácio Lula da Silva has signed a provisional measure banning fixed-odds betting and online casino games, bringing the country’s recently regulated betting market to an abrupt halt.
The measure, signed on September 25, prohibits the exploitation, offering, intermediation and advertising of fixed-odds betting across Brazil, including both sports betting and online games. It applies to operators authorized at the federal level as well as state and district-level betting concessions.
Under the transition framework, operators can no longer accept new deposits following publication of the measure. Players have until 11:59 p.m. on October 5 to withdraw remaining balances, while betting websites and apps are scheduled to go offline from October 6. Operators must then report remaining balances to financial institutions, with banks responsible for returning funds to players between October 9 and 14.
Brazil ends regulated betting framework
The decision marks a major reversal for Brazil, which spent years developing a regulated framework for an online betting market that had expanded rapidly after sports betting was legalized in 2018.
Lula’s government formally regulated and taxed fixed-odds betting through legislation signed in December 2023, with the regulated market beginning operations in 2025. The government subsequently introduced measures aimed at restricting access to illegal operators and strengthening controls around payments, advertising and responsible gambling.
The latest measure now ends that framework. According to the Brazilian government, 85 fixed-odds betting licenses had been granted, with each authorization costing BRL 30 million. That represents BRL 2.55 billion ($480 million) paid by operators during the licensing process.
The government says the termination of the authorizations does not create a right to compensation for lost profits, investments or expectations of continuing operations. It also states that operators will not be entitled to a full or partial refund of the amounts paid for their licenses.
The provisional measure has the force of law immediately but must go through Congress to remain in effect. The government has also submitted a bill that would establish criminal offenses related to fixed-odds betting, including operating betting services, promoting them, using personal data to recruit bettors and facilitating financial transactions connected to the activity.
Lula cites gambling-related harm
Lula has defended the measure as a response to the financial and social impact of online betting.
At the announcement in São Paulo, the president compared the betting industry to cancer and argued that the government needed to remove what he described as a growing threat to Brazilian families. He had also criticized betting during his speech at the United Nations General Assembly earlier in the week, accusing the industry of turning addiction into profit.
The government’s justification focuses heavily on gambling-related harm. The Health Ministry said online betting has become a growing public health issue, citing links to financial difficulties, anxiety, depression, family conflicts and other harms.
The ministry also cited research indicating that more than 28 million Brazilians had bet online during the previous 12 months in 2023, with 10.9 million showing a pattern classified as risky or problematic gambling. It said healthcare appointments related to pathological gambling and betting problems increased by around 140% between 2018 and 2025.
Industry warns of illegal market impact
The decision has raised concerns among industry representatives over what will happen to existing betting demand once regulated operators leave the market.
The Brazilian Institute of Responsible Gaming (IBJR), which represents a large portion of the country’s regulated betting sector, has argued that banning fixed-odds betting could push players toward illegal operators rather than eliminate demand.
The government, meanwhile, says it will step up enforcement against illegal betting. The Finance and Justice ministries will coordinate the blocking of unauthorized websites, while the government has established a committee to coordinate enforcement efforts against illegal betting and advertising. Penalties for violations can reach BRL 2 billion for companies.
The issue is particularly significant given that Brazilian authorities had been strengthening their approach to the illegal market immediately before the ban. Earlier in September, the Ministry of Finance published new rules designed to identify and interrupt financial transactions connected to unauthorized betting operators and strengthen cooperation with the financial system.
Congress has 120 days to review the measure
The provisional measure is already in force, but Congress has 120 days to review it before it can become permanent, although that deadline can be extended. The government has also submitted a separate bill aimed at strengthening measures against the illegal betting market.
MPs and senators are not expected to begin debating the measure until after the second round of Brazil’s elections. In the meantime, betting companies and industry groups have said they plan to challenge the ban in court in an effort to resume operations before the congressional review period ends.
Attorney General Jorge Messias told CNN Brasil the government was confident in the measure’s legal basis. “We remain completely confident and fully prepared to respond to any challenges that may arise,” Messias stated.
A key point of contention is the R$30 million authorization fee paid by licensed operators. The Ministry of Finance had granted 85 licenses before the ban, meaning companies had paid a combined R$2.55 billion in authorization fees.
Brazilian football faces major sponsorship losses
The betting ban is also expected to have a significant impact on Brazilian sports, particularly football.
Betting companies have become major sponsors of Brazilian clubs since the sector was legalized, with the country’s leading teams receiving substantial commercial income from the industry.
Grêmio warned before the announcement that betting had become one of the main sources of revenue for Brazilian sport and argued that a ban could open the door to illegal operators while creating serious financial difficulties for clubs.
According to figures cited by Brazilian broadcaster Globo, the country’s main football clubs received around BRL 1.1 billion ($212 million) from betting companies in 2025, while the betting industry generated approximately BRL 62.5 billion ($12 billion) in revenue during the same period.
The government’s measure also prohibits betting-related advertising and sponsorships, requiring operators to remove existing advertising and sponsorship material within 10 days of publication.
The ban therefore represents not only the closure of Brazil’s regulated online betting market, but also a significant disruption to the commercial ecosystem that developed around it.
Timeline for the end of betting operations
- New deposits have been prohibited since the provisional measure was published on Friday (25).
- Bettors have been instructed to withdraw their balances by 11:59 p.m. on 5 October.
- Betting websites and apps will be taken offline from 6 October.
- Betting operators must report balances by individual taxpayer registration number (CPF) on 7 and 8 October.
- Full repayment of balances is scheduled for 9 to 14 October.
- Where repayment cannot be completed directly, Caixa Econômica Federal will facilitate the return of funds to bettors from 14 October onwards.