Brazilian measure bars fixed-odds betting and related sponsorships

Brazil's Provisional Measure 1.394 of 25 September 2026 prohibits fixed-odds betting in the country, according to an opinion article. The article was written by Marcos Paulo de Castro Pereira, a lawyer at Ciscato Advogados Associados.

The author said the measure bars communication, advertising, marketing and sponsorship linked to the sector under its Article 16. The same provision orders advertising materials and sponsorship signs to be taken down within ten days of the rule's publication. Article 4 also provides that the authorisations held by operators lapse after thirty days. According to the author, the provisional measure itself says that the lapse of the authorisations gives operators no right to recover the amounts paid for the grant, nor to compensation from the public authorities.

The author wrote that the sector's regulation began with Law 13.756/2018 and was developed through Law 14.790/2023. From January 2025, national operation required authorisation from the Secretariat of Prizes and Bets at the Finance Ministry.

The author said the ban on advertising affects part of what sponsorship contracts between football clubs and betting companies provide for, and that each contract needs individual assessment. In the author's view, an earlier contract does not automatically permit advertising that the new rule prohibits. The author added that the outcome of such disputes will depend on the agreed clauses, the allocation of regulatory risk between the parties and proof of losses actually suffered. According to the article, lost sponsorship revenue is not by itself a sufficient legal basis for halting sports championships.

The article says Congress may amend, approve or reject the provisional measure, and that constitutional disputes may be taken to the Supreme Federal Court.