Betting websites and apps have ceased operations across Brazil following the implementation of Provisional Measure No. 1,394/2026, bringing the country's federally regulated fixed-odds betting market to a halt less than two years after its launch.
The measure prohibits the exploitation, offering, intermediation and advertising of fixed-odds betting nationwide, including online gaming. Brazil's Ministry of Finance previously listed 85 operators as authorized through the Secretariat of Prizes and Betting (SPA) before the prohibition was introduced.
Players were given until 11:59pm on October 5 to voluntarily withdraw funds. Ministry data showed BR$1.33bn (US$250.4m) remained awaiting redemption during the final day, despite BR$775.6m being withdrawn since September 26.
The number of CPF holders with positive balances fell by 2.36 million to 26.54 million over the same period.
Outstanding balances will now move through a government-mandated restitution process. Operators must provide information on remaining player funds, while financial institutions will process refunds between October 9 and 14.
Funds that encounter reimbursement issues will subsequently be transferred to Caixa Econômica Federal for repayment. The SPA has also set December 15 as the deadline for operators to settle remaining financial and regulatory obligations.
The shutdown follows an immediate contraction in betting-related payment activity. Finance Minister Dario Durigan said Central Bank data showed approximately BR$600m had previously been transferred to betting operators each day, with that flow falling to zero following the measure.
The prohibition remains subject to legal and legislative challenges. The National Association of Games and Lotteries (ANJL), Brazilian Institute of Responsible Gaming (IBJR) and National Association for the Legal Security of Games and Betting (Anseja) have sought suspension of the measure before the Supreme Federal Court.
The organizations argue that the change undermines legal certainty for previously authorized operators, while the Federal Government has cited household indebtedness and gambling-related harm among its reasons for the prohibition. Justice Luiz Fux is overseeing the challenges.
The provisional measure must still pass through Congress within 120 days to become permanent law.
On September 25, Global Gaming Insider reported that President Luiz Inácio Lula da Silva had signed the provisional measure banning iGaming and fixed-odds sports betting, requiring authorized operators to shut their platforms by October 6 and setting October 5 as the deadline for voluntary player withdrawals.
Approximately 92% of accounts with positive balances held less than BR$10, while more than 96% contained less than BR$25
