IBJR president warns Brazil betting market may not recover after licence revocations

Brazil's regulated betting market may not return to its previous state after Provisional Measure No. 1,394/2026 revoked the licences of licensed operators, according to Carlos Lima, president of the Brazilian Institute for Responsible Gaming (IBJR). Lima, speaking in an interview with Folha de S. Paulo, said the sector is still hoping that Supreme Federal Court (STF) Justice Luiz Fux will suspend the measure in the coming days.

Lima said a longer wait for a preliminary injunction would increase the negative effects of the ban, including layoffs. He said some companies have already reduced their workforce in Brazil, retaining only the legal and compliance departments while areas such as customer service have been eliminated. Smaller companies without the backing of large groups may be less able to remain in the country, he added.

The source reports that the measure has also affected investor confidence, which could deter companies from returning even if the measure is rejected, according to unnamed experts cited by Folha de S. Paulo. The number of companies that have left Brazil permanently is not yet known.

According to the Ministry of Finance, cancelling operating authorisations does not suspend companies' other regulatory requirements. The ministry's ordinance No. 3,005/2026 sets a compliance deadline of 15 December 2026.

Lima questioned whether prohibiting regulated betting platforms protects consumers, saying users could face unauthorised platforms and online fraud if authorised operators leave the market. He said the IBJR is not political and that the regulated sector has been ready to meet the federal government, and he identified advertising and consumer protection as areas for further improvement in the regulatory framework. He also urged the government to act more effectively against platforms that facilitate illegal betting.