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Provisional measure banning sports betting in Brazil published in the Federal Official Gazette

Por Cristina Possamai18 min de lecturaigamingbrazil.com ↗
Provisional measure banning sports betting in Brazil published in the Federal Official Gazette

President Luiz Inácio Lula da Silva signed a provisional measure on Friday (25) that puts an end to online betting operations—known as “bets”—in Brazil. The measure prohibits the operation, offering, […] O post Provisional measure banning sports betting in Brazil published in the Federal Official G…

President Luiz Inácio Lula da Silva signed a provisional measure on Friday (25) that puts an end to online betting operations—known as “bets”—in Brazil. The measure prohibits the operation, offering, intermediation, and advertising of online betting and games in the country. Following the publication of the Provisional Measure, platforms are prohibited from accepting new bets. The measure establishes a transition period for the winding down of operations by authorized companies. With the publication of the provisional measure: • New deposits into betting sites are immediately prohibited; • Bettors have until October 5 to voluntarily withdraw their balance; • The websites and apps must go offline starting October 6; • Between October 7 and 8, companies will inform the banks of the balances linked to the CPF numbers; • Between October 9 and 14, the banks will refund the amounts; • Caixa may facilitate the refund in cases where it is not possible to complete the transaction. Check out the full text of the provisional measure: PROVISIONAL MEASURE NO. 1,394, OF SEPTEMBER 25, 2026 Prohibits the operation, offering, intermediation, and advertising of fixed-odds betting lotteries within the national territory; establishes the Inter-institutional Committee for the Oversight of the Operation and Advertising of Illegal Fixed-Odds Betting; and amends Law No. 14.790 of December 29, 2023. THE PRESIDENT OF THE REPUBLIC, in the exercise of the authority conferred upon him by Article 62 of the Constitution, adopts the following Provisional Measure, having the force of law: CHAPTER I ON THE OBJECT AND SCOPE OF APPLICATION Art. 1. The operation, offering, intermediation, and advertising of fixed-odds betting lotteries—whether via physical or virtual means—are prohibited within the national territory, including when conducted by an agent based abroad that offers them to a person located within the national territory. § 1º The prohibition referred to in the *caput* covers bets on real sports-themed events and on virtual online gaming events. § 2º The prohibition referred to in the *caput* does not apply to other lottery modalities authorized by law. Art. 2. The provisions of this Provisional Measure apply to the operation of fixed-odds betting lotteries in the States and the Federal District. § 1º State and Federal District concessions, permissions, or authorizations for the operation of fixed-odds betting lotteries shall be terminated within the timeframe set forth in Art. 4. § 2º The provisions of Chapters II and III apply, mutatis mutandis, to the operation of fixed-odds betting lotteries referred to in this article. Art. 3 For the purposes of the provisions of this Provisional Measure, the following definitions apply: I – fixed-odds betting – an act whereby a specific amount is placed at risk with the expectation of obtaining a prize, the amount of which is defined by a multiplication factor; II – real sports-themed event – ​​an event, competition, or activity comprising sports competitions, tournaments, matches, or contests—whether individual or team-based—the outcome of which is unknown at the time the bet is placed; III – online games – an electronic channel enabling virtual betting on a game in which the result is determined by the outcome of a future random event, based on a random generator of numbers, symbols, figures, or objects defined in the system of rules; IV – virtual online gaming event – online gaming event, competition or act whose result is unknown at the time of the bet; and V – betting operator – a legal entity authorized to operate fixed-odds betting lotteries, pursuant to the provisions of Law No. 14.790 of December 29, 2023. CHAPTER II On the Termination of Authorizations for the Operation of Fixed-Odds Betting Lotteries Art. 4. Concessions, permissions, and authorizations for the operation of fixed-odds betting lotteries granted pursuant to Law No. 14.790 of December 29, 2023, shall terminate upon the expiration of a thirty-day period counting from the date of publication of this Provisional Measure, without prejudice to compliance with the obligations and prohibitions set forth for the transition period addressed in Chapter III. Sole paragraph. The termination referred to in the *caput* arises from reasons of public interest and does not entitle the betting operator to a refund—whether total or partial—of the grant fee paid pursuant to Article 12 of Law No. 14.790 of December 29, 2023, nor to compensation from the public authorities. Art. 5º The termination referred to in Art. 4 does not prejudice the exercise of the supervisory and regulatory powers of the Ministry of Finance’s Secretariat for Prizes and Betting regarding events that occurred while the authorizations for the operation of fixed-odds betting lotteries were in effect. Sole paragraph. Betting operators shall keep information regarding their legal representative, electronic address, and other contact details up to date with the Secretariat for Prizes and Betting for the period necessary to fulfill the remaining obligations set forth in this Provisional Measure. Art. 6. As of the date of publication of this Provisional Measure, the granting of new concessions, permissions, and authorizations for the operation of fixed-odds betting lotteries is prohibited. Sole paragraph. Applications for the grant, permission, or authorization to operate fixed-odds betting lotteries that remain undecided as of the date of publication of this Provisional Measure shall be rendered moot. CHAPTER III ON THE OBLIGATIONS OF BETTING OPERATORS DURING THE TRANSITION PERIOD Art. 7. Ten days after the date of publication of this Provisional Measure, betting operators must disable access to websites and internet applications intended for offering fixed-odds betting—including those in virtual stores—subject to blocking. § 1º As of the date of publication of this Provisional Measure, the deposit of new funds into transactional accounts is prohibited, except for amounts proven to originate from the redemption, maturity, sale, or liquidation of financial assets in which bettors’ funds were invested on that date—including any earnings—provided such amounts are allocated exclusively to the fulfillment of the obligations set forth in this article. § 2º Fixed-odds bets that remain open, and whose outcome has not been determined within the timeframe specified in the *caput*, shall be deemed void; in such event, the bettor shall be guaranteed a full refund of the staked amounts, with no deductions of any kind permitted. § 3º The bettor shall be guaranteed the right to receive prizes resulting from bets the outcome of which has been determined by the end of the period provided for in the *caput*. Art. 8. Following the blocking of access referred to in Art. 7, betting operators must, within two days: I – ensure the availability and liquidity of the funds necessary for the full reimbursement of amounts owed to bettors, including available balances, amounts corresponding to bets deemed void, and prizes due; II – forward to the financial and payment institutions holding their transactional accounts an itemized list of bettors, indicating their Individual Taxpayer Registry (CPF) numbers, the amounts to be refunded, and the accounts from which the funds originated; and III – forward to the Secretariat of Prizes and Betting the information referred to in item II, accompanied by proof of the availability of the funds necessary for the reimbursement § 1º Funds allocated for reimbursement shall remain segregated from the assets of betting operators and held in the respective transactional accounts; their movement for any purpose other than the payment of amounts due to bettors is prohibited. § 2º Failure to comply with the obligations set forth in the *caput* shall subject the betting operator to a daily fine of R$ 200,000.00 (two hundred thousand reais) until actual compliance is achieved, without prejudice to the imposition of other sanctions. Art. 9. Financial and payment institutions holding the transactional accounts of betting operators shall, within seven days of receiving the information referred to in Art. 8, *caput*, item II, make full restitution of the amounts due to bettors by means of a transfer to an active deposit or payment account held by the bettor, identified by their CPF registration number. § 1º The refund referred to in the *caput* shall preferably be made to the account from which the funds originated, provided it is active and held by the bettor; transfer to another account held by the bettor is permitted. § 2º Financial and payment institutions shall submit to the Secretariat for Prizes and Betting, upon the expiration of the period provided for in the *caput*, an itemized report on the amounts refunded and those for which a refund was not possible, indicating the account holders and the reasons preventing the refund. § 3º Funds belonging to bettors that could not be refunded in the manner provided for in the *caput* must be transferred by financial and payment institutions to a specific account at Caixa Econômica Federal for the purpose of refunding the holders, under the supervision of the Ministry of Finance and with individualized identification of the amounts due to them. § 4º The reimbursement referred to in the *caput* does not absolve betting operators of liability regarding amounts not made available, discrepancies identified, or other obligations arising from the operation of fixed-odds betting lotteries. Art. 10. The termination of the concession, permission, or authorization to operate fixed-odds betting lotteries, or the cessation of activities, does not absolve the betting operator of obligations relating to the period during which it was authorized, including obligations regarding: I – regulatory, tax, and pecuniary, including statutory allocations; II – regarding the prevention of money laundering, the financing of terrorism, and the proliferation of weapons of mass destruction, as well as responsible gaming and sports integrity; III – to provide the competent authorities with the information necessary for supervision; and IV – to keep the data, documents, and activity records intact and accessible to competent authorities for a minimum period of five years, including those relating to bettors, bets, financial transactions, and prize payments. Art. 11. Betting operators whose authorizations are terminated as provided for in Art. 4 shall remain obligated to transmit to the Secretariat of Prizes and Betting, via the Betting Management System (Sigap), data and information regarding activities carried out up to the date of cessation of fixed-odds betting lottery operations, including those relating to: I – to bettors, bets, prizes, deposits, withdrawals, and the respective transactional accounts; II – to remaining balances and the reimbursement of amounts to bettors; III – to revenue derived from the operation of betting, to statutory allocations, and to other amounts subject to regulatory reporting; IV – to the measures and mechanisms for promoting responsible gaming and protecting bettors, as provided for in applicable legislation and regulations; and V – to other data and information required by applicable legislation and regulations. Sole paragraph. The Secretariat for Prizes and Betting may regulate the form, timeframes, and procedures necessary for compliance with the obligations to transmit data and information to Sigap. Art. 12. Failure to comply with the obligations set forth in this Chapter shall subject betting operators to the sanctions provided for in Art. 41 of Law No. 14.790 of December 29, 2023, where applicable, to be imposed by the Ministry of Finance. Art. 13. Administrative sanctioning proceedings that have not reached a final decision by the date of publication of this Provisional Measure, and which investigate the occurrence of an infringement of the provisions of Law No. 14.790 of December 29, 2023, and its regulations, are hereby suspended. Sole paragraph. The administrative proceedings referred to in the *caput* shall be definitively archived if the betting operators timely fulfill all obligations set forth in this Chapter. CHAPTER IV On the Instruments for Ensuring the Effectiveness of the Prohibition Section I Regarding financial institutions, payment institutions, and the initiators and other participants in payment arrangements Art. 14. Except for transactions necessary to wind down operations and return funds to bettors, financial institutions, payment institutions, and the issuers and other participants in payment arrangements—including instant payment arrangements—are prohibited from processing, settling, or facilitating transactions related to fixed-odds betting lotteries, in accordance with regulations issued by the Central Bank of Brazil. § 1º The initiators of payment arrangements shall: I – provide in regulations for rules ensuring compliance with the provisions of the *caput* by all participants, including those not subject to authorization by the Central Bank of Brazil; and II – adopt the necessary measures in the event of non-compliance, including the exclusion of the participant. § 2º The provisions of this article do not preclude the application of Art. 21-A of Law No. 14.790 of December 29, 2023. Art. 15. The Central Bank of Brazil shall establish a system for the electronic communication of data to enable financial institutions and payment institutions to reject transactions and return funds—via interbank channels—related to illegal fixed-odds betting, within the scope of real-time fund transfers settled through a system operated by the Central Bank. Section II Regarding communication, advertising, publicity, and sponsorship marketing activities Art. 16. Communication, advertising, publicity, and sponsorship marketing activities related to fixed-odds betting lotteries are prohibited within the national territory, in any medium, whether physical or digital. § 1º The prohibition referred to in the *caput* encompasses all content that offers, promotes, advertises, or facilitates access to fixed-odds betting lotteries and is directed at the Brazilian public, regardless of the format or method of remuneration. § 2º The removal of advertising material and sponsorship signage displayed in physical or digital media must be carried out within ten days of the date of publication of this Provisional Measure. Art. 17. The prohibition set forth in Art. 16 does not apply to content published, disseminated, or displayed prior to the date of publication of this Provisional Measure that contains advertising or commercial promotion of fixed-odds betting as an ancillary element of such content. Art. 18. Violation of the provisions of Arts. 16 and 17 constitutes abusive advertising, pursuant to Art. 37, § 2, of Law No. 8.078 of September 11, 1990 (Consumer Defense Code), and subjects violators to the administrative sanctions provided for in Art. 56 of said Law—including the imposition of corrective advertising—without prejudice to civil and criminal liability. § 1º The infractions referred to in the *caput* shall be investigated by the bodies comprising the National Consumer Defense System, within the scope of their respective competencies, in accordance with the provisions of consumer protection legislation. § 2º The competent authority may order, as a precautionary measure, the suspension of the dissemination of the content referred to in the *caput* of this article, pursuant to the provisions of Art. 56, sole paragraph, of Law No. 8.078 of September 11, 1990 (Consumer Defense Code). Section III On the obligations of internet application providers, application stores, and operating systems Art. 19. Internet application providers have a duty of care to prevent and stop the circulation, on their services, of the content referred to in Art. 16, § 1, even if generated by third parties; in such cases, they are subject to the sanctions provided for in Art. 22. Sole paragraph. Internet application providers shall be held liable in the event of a failure to exercise the duty of care if they do not demonstrate the adoption of appropriate measures to prevent the circulation of the content referred to in Article 16, Paragraph 1. Art. 20. Without prejudice to the provisions of Art. 19, internet application providers shall make available, in response to a notification, content generated by third parties that constitutes a violation of the provisions of this Provisional Measure. Sole paragraph. The notification referred to in the *caput* may be issued by an authority belonging to the National Consumer Defense System or by the Ministry of Justice and Public Security. Art. 21. Providers of internet application stores for operating systems shall prevent the availability of products or services prohibited by this Provisional Measure. Sole paragraph. Without prejudice to the duty to prevent availability, providers of internet application stores must make the product or service prohibited by this Provisional Measure unavailable after being notified by the competent authority. Art. 22. Non-compliance with the provisions of Articles 19 through 21 subjects violators to the following sanctions, imposed by the Ministry of Justice and Public Security, either individually or cumulatively, without prejudice to civil and criminal liability: I – warning, specifying a deadline for the adoption of corrective measures; II – a simple fine of up to 10% (ten percent) of the economic group’s revenue in the country during its last fiscal year, excluding taxes, or, in the absence of revenue, a fine ranging from R$ 10.00 (ten reais) to R$ 1,000.00 (one thousand reais) per user registered with the sanctioned provider, capped at a total of R$ 50,000,000.00 (fifty million reais) per infraction; III – daily fine, subject to the limit provided for in item II; IV – temporary suspension of activities; or V – prohibition on the exercise of the activities. § 1º When applying sanctions, the following shall be taken into account: the severity of the infringement, the number of affected users, the advantage obtained, the offender’s economic status, any repeat offenses, the offender’s cooperation, and the adoption of corrective measures. § 2º The sanctions provided for in items IV and V of the *caput* shall be applied only in the event of a repeat offense or repeated non-compliance following the application of the sanctions provided for in items I through III of the *caput*. § 3º In the case of a foreign company, the branch, subsidiary, office, or establishment located in the country shall be jointly and severally liable for payment of the fine. Section IV On the blocking of websites and internet applications Art. 23. The Ministry of Finance and the Ministry of Justice and Public Security may request the blocking or redirection of websites offering fixed-odds betting lotteries. § 1º To carry out the administrative orders to block websites referred to in the *caput*, it shall be the responsibility of: I – to the National Telecommunications Agency (Anatel), the receipt and distribution of orders to telecommunications service providers that supply internet connectivity and to other agents that enable the connection between users and content servers on the internet; and II – to the Brazilian Internet Steering Committee (CGI.br), the receipt of orders related to the resolution of services for names registered under the “.br” domain. § 2º Subject to the provisions of § 1, Anatel and CGI.br are authorized to determine the most suitable technique for implementing the administrative blocking order. CHAPTER V FINAL PROVISIONS Art. 24. The Inter-institutional Committee for Oversight of the Operation and Advertising of Illegal Fixed-Odds Betting is hereby established, coordinated by the Chief of Staff’s Office of the Presidency of the Republic, for the purpose of promoting the coordination and alignment of actions by competent authorities regarding the prevention, oversight, and suppression of the illegal offering, operation, and advertising of fixed-odds betting lotteries. Sole paragraph. Regulations shall provide for the competencies, composition, and functioning of the Inter-institutional Committee for the Oversight of the Operation and Illegal Advertising of Fixed-Odds Betting. Art. 25. In order to comply with the provisions of this Provisional Measure, the Federal Police, the Special Secretariat of the Federal Revenue of Brazil of the Ministry of Finance, and the Council for Financial Activities Control shall share the information necessary for the exercise of their respective competencies, subject to legal provisions regarding personal data protection and the confidentiality of information. Art. 26. The States and the Federal District shall adopt, within the scope of their respective jurisdictions, the measures necessary to comply with the provisions of this Provisional Measure. Art. 27. The Union may enter into cooperation agreements with the States and the Federal District to oversee compliance with the provisions of this Provisional Measure and to share information. Art. 28. Law No. 14.790 of December 29, 2023, shall enter into force with the following amendments: “Art. 21-A. …………………………………………………………………………………….. ……………………………………………………………………………………………………… III – report to the Council for Financial Activities Control (COAF) financial operations related to the irregular operator, including any atypical situations identified in transactions linked to them. …………………………………………………………………………………………………….. § 2º-A. The forfeiture to the Union of funds held in accounts blocked as provided in this article shall be declared in an administrative proceeding, under the terms established by regulation—ensuring the principles of adversarial proceedings and full defense—and shall not depend on a prior judicial proceeding. “§ 3º Amounts declared forfeited as provided for in § 2º-A—including those relating to taxes, fines, and other penalties imposed due to the unauthorized operation of fixed-odds betting lotteries—shall be allocated to the National Public Security Fund (FNSP), referred to in Law No. 13.756 of December 12, 2018.” (NR) Art. 29. The following are hereby repealed: I – Chapter V of Law No. 13,756 of December 12, 2018; II – the following provisions of Law No. 14,790 of December 29, 2023: a) Articles 1 through 21; b) Articles 22 to 24; c) Articles 25 to 40; d) Articles 43 to 48; and e) Article 54; and III – Article 68 of Law No. 15,421, of June 1, 2026. Sole paragraph. The provisions of Law No. 13,756 of December 12, 2018, and Law No. 14,790 of December 29, 2023, shall remain applicable to events occurring during the validity of authorizations for the operation of fixed-odds betting and to the fulfillment of obligations set forth in Chapters II and III of this Provisional Measure, including regarding the supervisory, enforcement, and sanctioning powers of the Secretariat for Prizes and Betting of the Ministry of Finance and the statutory allocation of revenues. Art. 30. This Provisional Measure enters into force on the date of its publication. Brasília, September 25, 2026; 205th year of Independence and 138th of the Republic. LUIZ INÁCIO LULA DA SILVA Dario Carnevalli Durigan Wellington César Lima e Silva President of the Federative Republic of Brazil Provisional Measure BetsDownload O post Provisional measure banning sports betting in Brazil published in the Federal Official Gazette apareceu primeiro em iGaming Brazil.

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