Brazil Issues Provisional Ban on Online Sports Betting Operations
Written by Yara Krüger · Sep 28, 2026
Brazil Issues Provisional Ban on Online Sports Betting Operations
Brazilian President Luiz Inácio Lula da Silva signed provisional measure MP 1,394 on September 25, 2026, which immediately prohibits the operation, offering, intermediation, and advertising of online sports betting along with casino games across the country, and the decree sets strict timelines for platforms to halt new deposits while permitting withdrawals through October 5 before full shutdown on October 6.
Immediate Requirements for Licensed Operators
Existing platforms that received licenses under the 2025 regulatory framework must cease accepting fresh deposits right away, they retain permission to process user withdrawals until the October 5 deadline, and all operations must end by October 6 with licenses revoked without any refund of the BRL 30 million fees paid during the initial licensing round. This structure ensures an orderly wind-down for players seeking to recover funds, yet it leaves operators without recourse on the substantial licensing costs already remitted to authorities.
Reversal of the 2025 Regulated Market
The action reverses the regulated market that launched in 2025 when Brazil moved to legalize and tax online sports betting along with casino-style games through a structured licensing system, and that earlier framework had attracted multiple international operators who invested heavily to meet compliance standards including the BRL 30 million fee per license. Now those same operators face sudden closure, while the provisional measure carries an expiration clause unless Congress grants approval within 120 days to convert it into permanent law.
Timeline and Legal Process Ahead
Congressional review begins immediately after the September 25 signing, lawmakers hold 120 days to either ratify or reject the ban, and failure to approve means the measure lapses automatically with the regulated market potentially resuming. Data from regulatory filings show that dozens of platforms had already secured licenses and begun operations under the 2025 rules, which means the current ban affects a market that had grown rapidly in its first year of legality. Observers note that the short compliance window forces swift technical changes such as blocking deposit functions and displaying withdrawal instructions, while advertising campaigns across digital channels must stop without delay to avoid penalties.
Effects on Users and Market Participants
Players who had active accounts receive instructions to complete withdrawals before October 5, after which access ends entirely, adn the ban covers both sports betting and casino games so users lose options across multiple verticals at once. Those who studied the 2025 rollout recall that the regulated environment had introduced consumer protections including responsible gaming tools and tax collection mechanisms, yet the new measure suspends those features pending legislative action. Figures from industry reports indicate that Brazilian users had placed significant volumes of bets through licensed sites since legalization, which makes the abrupt halt a notable shift in access patterns.
Broader Regulatory Context
The provisional measure arrives amid ongoing debates about gambling policy, yet the text focuses solely on the immediate prohibition and revocation steps without detailing future tax or enforcement plans. Provisional Measure 1,394 of September 25, 2026 carries the force of law from the moment of signature, which compels operators to adjust systems within days rather than months. And because the decree targets advertising as well as core operations, marketing partners and media outlets must also cease promotions related to the affected activities.
Conclusion
The signing of MP 1,394 on September 25, 2026 establishes a rapid transition away from the licensed online betting sector that began in 2025, platforms now follow precise deadlines for deposit stops and shutdown, and Congress holds the decisive vote within 120 days that will determine whether the ban remains in force or the regulated market returns. This single development concentrates regulatory power in the executive branch temporarily while shifting the long-term outcome to legislative review.