Brazil's President Luiz Inácio Lula da Silva signed a provisional measure on September 25, 2026, banning fixed-odds betting, which includes sports betting and online casinos. The Provisional Measure No. 1.394 announced that it would terminate all federal and state fixed-odds betting authorizations within 30 days, with no refunds for any granted fees.
Under Article 1 of the measure, all exploitation, offering, intermediation, and advertising of fixed-odds lottery betting, regardless of whether it occurs online or in person, has been prohibited throughout Brazil. This is a temporary action that requires congressional approval within 120 days; however, the legislative recess means discussions might extend into early 2027. The timing is particularly notable, coming just days ahead of the presidential election on October 4, and approximately two years after Brazil permitted a regulated sports betting market.
### Overview at a Glance
**Is Brazil really banning betting?**
Yes, the ban is currently in place as a provisional measure but is not permanent until Congress validates it. If Congress does not endorse it, the measure will lapse.
**Who will be affected by the ban?**
Brazil's licensed iGaming market, valued at about $5.7 billion in net revenue, could face significant losses. Operators paid approximately $5.8 million each for five-year licenses. Flutter Entertainment, for instance, announced it would cease operations in Brazil, predicting a financial hit of $70 million in revenue and a $20 million drop in adjusted earnings for 2026 due to the ban. Many stakeholders in the industry, including affiliates and payment providers, will also see adverse effects.
**What was the market’s trajectory before the ban?**
Brazil’s regulated betting industry experienced rapid growth after legalization in 2018. Despite operating without a formal regulatory framework early on, it saw a structured market launch in January 2025, generating substantial gross gaming revenue. Recent regulatory actions had already intensified prior to the blanket ban, with banks previously instructed to close accounts for unlicensed operators within 24 hours.
**Why is the government acting against betting?**
The ban primarily stems from concerns regarding gambling addiction and its associated social and economic impacts. Lula condemned the gambling industry, citing it as a "cancer" harming many families. Finance Minister Dario Durigan echoed these sentiments, highlighting the public health crisis posed by online betting, particularly among low-income households.
### Industry Reactions
The initial responses from various stakeholders have been polarized. Government officials defend the action on public health grounds, while industry representatives have signaled intentions to mount legal challenges against the ban. The National Association of Games and Lotteries (ANJL) has already initiated legal proceedings, warning that the crackdown may push users towards unregulated, illegal markets. Reports noted that after the announcement of the ban, illegal betting sites surged, with an increase of 141% in new illegal platforms documented within days.
Operators like Flutter and bet365 criticized the prohibition as unconstitutional, arguing it jeopardizes player protection and transfers gamblers to unregulated platforms. Bet365 expressed strong discontent, stating their concern for customers forced to navigate unsafe illegal betting options.
Looking ahead, the future of Brazil’s betting landscape hinges on the outcomes of the congressional discussions following the election, with significant impacts anticipated on existing investments, licensing fees, and community trust in the regulatory framework. While predictions vary, it is anticipated that the complete ban on legal betting is unlikely to remain in place permanently. Some industry experts foresee that legislative changes will occur, but the current uncertainty is raising alarms regarding investor confidence in the country’s gaming regulations.
