Brazil has executed a stunning policy reversal, with President Lula signing a provisional measure that completely dismantles one of the world’s most anticipated regulated betting markets.
The dramatic decision, confirmed on September 25, 2026, leaves licensed operators facing a rapid shutdown with no reimbursement for their licence fees.
President Lula had originally signed the legislation establishing Brazil’s regulatory framework back in December 2023, making this reversal all the more extraordinary.
The measure prohibits the operation, offering, intermediation and advertising of fixed-odds betting across Brazil, covering both sports betting and online casino products.
It directly dismantles the framework established by Law 14,790, which Lula himself sanctioned after years of uncertainty over how Brazil would regulate its enormous, largely grey betting market.
International giants such as Betano, bet365 and Entain had invested significant time and resources transitioning to regulated operations in order to protect their market shares in the country.
For operators and investors that committed substantial capital to securing licences, establishing Brazilian businesses, hiring locally and adapting their products, the implications are described as disastrous.
Finance Minister Dario Durigan confirmed that betting platforms would be barred from accepting new deposits once the measure was published and took effect.
Customers may withdraw funds until 11:59 p.m. on October 5, before betting websites and applications are blocked entirely on October 6, with operators required to report unclaimed balances to financial institutions on October 7 and 8.
Neil Montgomery, founding partner of Brazilian law firm Montgomery, had flagged the risk during a webinar just days before the announcement, warning: “If the provisional measure does come, we are going to have a lot of turbulence.”
The government has presented the ban as a measure designed to protect Brazilian families from gambling-related debt and broader social harms caused by the betting industry.
Authorities are also reportedly studying measures to make betting companies pay the debts of individuals who fell into financial difficulty through gambling, including potential lawsuits to recover those amounts.
An additional proposal under discussion involves charging operators directly for the cost of treating gambling-related harm through SUS, Brazil’s public health system.
The provisional measure only takes full legal effect once published in the Diário Oficial da União, Brazil’s official gazette, at which point it immediately outlaws online gambling nationwide.
