Brazilian provisional measure halts fixed-odds betting and online casino activity

Brazil's federal authorisations for fixed-odds betting and online casino operators expired on 25 October 2026, the day of the presidential runoff, under Provisional Measure 1,394/2026, which took effect on 25 September. The measure prohibits the operation, offering, intermediation and advertising of fixed-odds betting, covering both sports betting and online casino games, and bars the issuing of new authorisations. The provisions also apply to authorisations issued by the states and the Federal District.

The measure set a schedule: new deposits were blocked from 25 September, users could request withdrawal of their funds until 5 October, and gaming sites and applications were to be deactivated from 6 October. Between 9 and 14 October, financial institutions were instructed to return balances still held in user accounts.

Luiz Inácio Lula da Silva was re-elected president with 51.78% of valid votes against 48.22% for senator Flávio Bolsonaro, according to the final results of the Superior Electoral Court. His new term begins on 5 January 2027, and he remains in office without interruption. Three days before the vote, in a broadcast on YouTube, Lula restated his opposition to reopening the betting market, saying that those who want to earn money should work.

With the authorisations now expired, it remains unclear whether previous licences could take effect again if the ban were amended or repealed, or whether a new authorisation procedure would be required. The sector's prospects depend mainly on two institutional tracks: the examination of challenges before the Supreme Federal Court (STF) and the parliamentary process for the provisional measure.

At the STF, judge Luiz Fux is the rapporteur of proceedings brought against the ban, including those filed by the national association of games and lotteries (ANJL) and the broadcasters' association Abert. More than 20 football clubs have asked to intervene in the cases, given the measure's effects on commercial relationships and sports sponsorships. On 2 October, Fux gave the Advocate General's Office 72 hours to submit its observations. A decision on the challenges was expected after the presidential elections. The STF could uphold the measure, suspend it in full or act on only some of its provisions; a possible distinction between sports betting and online casino games is among the hypotheses under legal discussion.

In Congress, the provisional measure has immediate effect but needs parliamentary approval to be converted into law. The joint committee tasked with examining it is still awaiting installation despite the appointment of its members; its chair and rapporteur have not been named. Ninety-nine amendments were tabled, five of which were later withdrawn. The parliamentary calendar provides for the urgency regime to start on 9 November and for the first period of effectiveness of the measure to end on 23 November; the deadline can be extended by a further 60 days, taking into account the suspension of the count during the parliamentary recess. Among possible changes discussed in Congress is allowing sports betting again while keeping the ban on online casino games, a solution that would still require defining the regime for the expired authorisations.

According to assessments communicated by the Advocate General's Office to the STF, the Brazilian government could lose about R$5bn a year, equivalent to about $990m, in revenue linked to the sector. In the first month of application of the ban, operators' revenue losses were estimated at about R$1.2bn, while forgone federal tax revenue was reported at more than R$400m.

Flutter Entertainment announced on 28 September that it was ceasing sports betting and iGaming activities in Brazil in application of the government measure. The company said it was disappointed by the executive's decision and that it would assess all available options, including a possible challenge. Flutter estimated that not being able to operate in the country for the rest of 2026 would reduce revenue by about $70m and have a negative impact on adjusted EBITDA of about $20m.

On 23 October, Flutter Brazil announced the closure of the Betfair brand's operations in the country and said it would concentrate its strategy on the local Betnacional brand. The group said that, once the regulatory framework is clarified, it will direct resources and expertise to the local brand, strengthening product focus and simplifying its business model. The reorganisation also has employment consequences.