Brazil’s regulated betting market could face a six-month countdown if a proposed ban on fixed-odds betting becomes law. Bill 5.153/2026, presented by Federal Deputy Caroline de Toni, would end existing authorizations 180 days after the law’s publication.
The proposal arrives less than two years after Brazil established its regulated betting framework. The legal market began on January 1, 2025, following legislation approved in late 2024. Under de Toni’s plan, operators would have a defined transition period before their licenses expire.
180 Days To Close Existing Operations
The bill would prohibit the operation, offering, promotion and intermediation of fixed-odds betting in Brazil. It also proposes blocking betting platforms and financial flows connected to operators that continue operating after the transition.
During the 180-day period, authorized companies would remain subject to bettor-protection requirements. They could not accept wagers on events scheduled after the transition ends.
Once the period expires, betting platforms could remain available for withdrawals, settlement of existing bets and account consultation. Operators would have another 90 days to pay outstanding winnings and return customer balances.
The proposal would also prevent new betting authorizations and require applications awaiting final decisions to be archived.
For companies currently operating under federal authorization, the transition period would determine how quickly the regulated market must wind down if lawmakers approve the bill.
Enforcement Would Continue After The Deadline
The proposal includes measures aimed at preventing operators from continuing through unauthorized channels. Authorities could block websites and domains, remove betting applications from digital stores and stop financial transactions.
The restrictions would also cover digital wallets, virtual-asset transactions and structures maintained abroad when they serve bettors in Brazil.
Anyone who operates, manages, organizes or financially maintains fixed-odds betting after the permitted period could face two to five years in prison and a fine. Penalties would also apply to people who finance illegal operations, conceal beneficiaries or provide structures for moving related funds. Bettors would not face punishment solely for placing wagers.
The bill comes as political pressure on the sector increases. President Luiz Inácio Lula da Silva has called for greater restrictions, while the Liberal Party is considering tougher betting policies ahead of Brazil’s October 4 elections.
A Young Market Facing An Early Deadline
The proposed shutdown would affect an industry that has expanded rapidly since regulation began. Licensed online betting and gaming companies paid R$8.7 billion in taxes between January and July 2026, compared with R$4.9 billion during the same period in 2025, according to the Federal Revenue Service.
De Toni argues that the market’s economic and social effects justify ending fixed-odds betting. She cited estimates of substantial household funds flowing toward betting companies and said the state should prioritize family income.
If approved, the bill would give existing operators 180 days to wind down authorized activity, followed by a 90-day period for settling outstanding customer obligations.
For a market created in January 2025, the proposal would establish a short timetable for its possible closure.
Source:
“Draft bill calls for the end of betting operations and gives 180 days to cease operations”, congressoemfoco.com.br, August 25, 2026