Brazil Terminates Online Betting and Casino Licenses in Dramatic Policy Reversal

Brazil has executed a sharp reversal in its online gambling policy, with President Luiz Inacio Lula da Silva signing a provisional measure on September 25, 2026 that prohibits fixed-odds betting across the country. The decision dismantles the regulated framework established under Law 14,790, which Lula himself sanctioned in December 2023 and which had created a federal licensing regime for sports betting and online games.

The ban covers both sports betting and online casino-style games, prohibiting companies from operating, offering, intermediating, and advertising fixed-odds betting in physical and online environments, including services offered to Brazilian residents by foreign-based companies. This represents a complete reversal from the legalization strategy pursued just 36 months prior.

Licensed operators face an extremely compressed timeline for winding down operations. The provisional measure specifies that all existing concessions, permissions, and authorizations will expire 30 days after publication, with no refund of authorization fees or government compensation provided. Customers are given until October 5 to voluntarily withdraw remaining balances. From October 6, betting websites and apps become unavailable, with operators required to provide financial institutions customer balance information. Banks must return remaining funds between October 9 and 14.

The government has also established a detailed enforcement component. New federal betting authorizations are prohibited, and applications pending decision at the time of the measure's publication are automatically closed. All advertising, marketing, and sponsorship of fixed-odds betting is now prohibited, with existing material required to be removed within 10 days. Financial institutions and payment companies are banned from processing betting transactions except those necessary to close operations and return customer funds.

The policy shift reflects stated concerns over gambling-related harm and household debt. The government has linked the betting prohibition to broader efforts to renegotiate approximately R$150 billion in household debt. Enforcement efforts have already begun, with a joint task force operated by the Justice and Public Security and Finance ministries announcing on September 27 that it had taken down 506 websites suspected of offering unauthorized betting.

The provisional measure carries immediate legal force, though Congress retains the authority to review it. The abruptness of this reversal underscores the volatility that can characterize gambling regulation in emerging markets where policy decisions may shift significantly with political administration changes. For operators who invested in compliance infrastructure and licensing fees under the previous framework, the transition offers minimal recourse or adjustment period. The measure also signals a coordinated government approach to addressing illegal operators while dismantling legal alternatives, a strategy that carries uncertain outcomes for channeling player activity and tax revenue.