Brazil bans sports betting and online casino games

Brazil has banned fixed-odds sports betting and online casino games under a provisional measure issued by President Luiz Inácio Lula da Silva, with platforms to be shut down from 6 October. The measure, Medida Provisória 1.394/2026, was issued on 25 September and took effect immediately, but it must be approved by Congress to remain in force permanently, according to the explanatory notes from the Brazilian Ministry of Finance.

Under the measure, the covered products may not be operated, offered, brokered or advertised. Its reach extends to providers based abroad that serve Brazilian customers, and to licences issued at state level. Lotteries that are otherwise legally authorised stay outside the ban. Deposits were barred as soon as the measure was published, and customers must ask for their available balances to be paid out by 11:59 p.m. on 5 October. The financial institutions taking part are to return what remains between 9 and 14 October, with the state-owned Caixa Econômica Federal stepping in afterwards to help if difficulties arise.

Gambling problems, debt and the strain on families are the reasons the government gives, and in its view earlier protective steps did not go far enough. Lula directed criticism at the way soccer clubs lean on money from betting sponsors. The ban came nine days ahead of the first round of the presidential election on 4 October, and the ANJL says the government is using it to win an advantage in the campaign. Separately, a bill has been drafted that would create criminal penalties, including for running such services and for their financial transactions; those proposed offences belong to a different legislative process.

Two bodies, the Associação Nacional de Jogos e Loterias (ANJL) and the Instituto Brasileiro de Jogo Responsável (IBJR), want the measure suspended without delay and have taken their objections to the Federal Supreme Court. They challenge the urgency the government gives as grounds for intervening, and they point to legal certainty and the protection of legitimate expectations: on the strength of government licences, companies had invested, built technical systems and put safeguards in place. Should suspension fail, they ask that the transition periods be lengthened by no less than six months.

Money is where the dispute concentrates. The government puts the number of licences granted at 85, each costing 30 million reais, which adds up to 2.55 billion reais; the measure rules out returning licence fees and rules out compensation for investments or lost profits. Job losses, lost tax revenue and demand moving to illegal providers are the risks the associations raise.

Early monitoring data has added to fears that the black market will grow. The platform Bet Legal counted 415 new illegal betting websites after the ban was announced, with close to 300 of them reportedly appearing in one day, while 506 platforms went offline. What these numbers capture is the activity of illegal sites; they cannot show how many players are in fact moving to such services or what betting volume lies behind it. Authorities have said they will block illegal domains, remove apps and restrict payment methods, and the industry contends that unregulated services leave players less protected and make claims harder to enforce.

Alongside the ban, a second case is sharpening the conflict. The Advocacia-Geral da União (AGU), which represents the federal government in legal matters, has sued 17 betting companies at a federal court in Pernambuco. The operators behind Betano, bet365, Superbet, Sportingbet and Betfair are among them. The AGU wants the public health system (SUS) reimbursed for what it says were costs caused by gambling-related illnesses, putting the figure at roughly 2.6 billion reais, with the precise sum left to the proceedings. It further seeks no less than one billion reais in collective non-pecuniary damages, arguing that the companies profit while the public health system carries the social costs. Liability, and how far it reaches, is for the court to decide.

Professional sport is feeling the effects too. Many clubs depend on betting operators for sponsorship, and for that reason Clube de Regatas do Flamengo, the country's largest sports club, has turned to the Federal Supreme Court once more, seeking a swift ruling before the transition period runs out. The market's legal framework dates from the end of 2023, and providers have worked under the new regulated system since January 2025. At the time of writing, it was still open whether the courts or Congress would alter the present direction.