The President of Brazil, Luiz Inácio Lula da Silva, has signed a provisional measure banning fixed-odds betting, mandating that licensed operators to stop accepting deposits and take their apps and websites offline no later than October 6.
Provisional Measure 1,394 prohibited the offering, provision of services, exploitation and advertising of fixed-odds betting in Brazil, including in the fields of online casinos and sports betting.
According to the government’s wind-down schedule operators will cease accepting deposits and will not enter into new marketing or sponsorship agreements as of September 25. Customers will be able to withdraw cash voluntarily until 23:59 on October 5 and will not be allowed to enter the sites of licensed operators after this date.
After October 6, licensed websites will cease operating. Operators will provide banks with any outstanding balances on October, 7-8 and will deliver funds to customers from October 9 to October 14 without the need for customers to initiate requests for withdrawals.
Other requirements include apps removal, payment blocking, etc. The punishments can go from reprimands to fines reaching R$2 billion and partial or full cessation of operation. Licence fees will also not be refunded.
The National Association of Games and Lotteries (ANJL) announced it will initiate legal proceedings against the legislation. Its President Plínio Lemos Jorge stated that the association is also considering demanding reimbursement of license fees and any other investments made. According to estimates by ANJL, about 30 million players will end up on illegal platforms due to the restrictions imposed by the new law. The Finance Ministry anticipates that the legalization of gambling may reduce the revenues of the government by approximately R$12 billion per year.
The Congress has 60 days to cast a vote regarding the new law, with the possibility of extending it for another 60 days. This may postpone the legislative process to the beginning of 2027 because of the end-of-the-year break.
