Shocking U-Turn: Brazil Bans Online Betting and Casino Games

Brazil has brought a dramatic change to its online gambling policy, with President Luiz Inácio Lula da Silva signing a provisional measure that prohibits fixed-odds betting across the country after expressing wide criticism against the industry during campaign rallies and a United Nations speech last week. What’s Included in the Measure The measure, officially published on September 25, covers both sports betting and online casino games, dismantling the regulated framework that was introduced less than three years ago. According to the new rules, companies are no longer allowed to operate, offer, intermediate, and advertise fixed-odds betting in physical and online environments. The list covers services offered to people in Brazil by companies based abroad. The new decision comes to reverse the system established under Law 14,790, which Lula sanctioned in December 2023. The system created the federal licensing regime for fixed-odds betting while allowing operators to provide sports betting and online games. For companies that obtained federal authorizations under that framework, the change comes with a short transition period. The provisional measure states that existing concessions, permissions and authorizations will expire 30 days after its publication. It also explicitly says operators will not receive a refund of the authorization fees they paid or compensation from the government when those licenses are terminated. Operators Face October Shutdown The government has established a detailed timetable for the closure, with customers given until October 5 to withdraw their remaining balances on a voluntary basis. From October 6, betting websites and apps are scheduled to become unavailable, with operators required to offer financial institutions information on the balances of remaining customers. After that, banks will need to return those funds to customers between October 9 and 14. New federal betting authorizations are also prohibited, while applications that had not been decided when the measure was published are considered closed. Advertising, marketing and sponsorship of fixed-odds betting are prohibited as well. Existing physical and digital advertising and sponsorship material must be removed within 10 days. Wider Illegal Market Targeted Brazil has also set up an inter-agency committee meant to coordinate enforcement measures, while financial institutions and payment companies will no longer be allowed to process betting transactions except those needed to close operations and return customer funds. Authorities have already begun acting against suspected illegal operators. On September 27, Brazil’s Justice and Public Security and Finance ministries said a joint task force had taken down 506 websites suspected of offering unauthorized betting. The government has linked the policy change to concerns over gambling-related harm and household debt. Alongside the betting ban, it announced measures intended to renegotiate up to R$150 billion ($28.96 billion) in household debt. The provisional measure has the force of law immediately, but it remains under consideration by Congress.