Brazil Bans Fixed-Odds Betting Nationwide, Orders Platforms Offline From October 6

President Luiz Inácio Lula da Silva signed Provisional Measure No. 1,394 on September 25, 2026, prohibiting the exploitation, offering, intermediation and advertising of fixed-odds betting throughout Brazil. The measure took immediate legal effect on publication in the Diário Oficial da União, and licensed operators were barred from accepting new deposits from that moment.

The measure is a medida provisória, a presidential instrument that carries the force of law from the moment it is published but must still be reviewed by the National Congress, which can approve, amend or reject it. It is not, on its own, a final and permanent law.

What the Measure Prohibits

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Article 1 of MP 1,394 bans the exploitation, offering, intermediation and advertising of fixed-odds betting lotteries ("loterias de aposta de quota fixa") nationwide, in physical or virtual form, including operators based outside Brazil that offer betting to people located in the country. A first paragraph specifies that the prohibition covers wagering on real sporting events as well as virtual online-game events. A second paragraph excludes other lottery formats already authorized by law, meaning federal lottery products run through Caixa, such as Mega-Sena and Lotofácil, are not affected.

Article 2 extends the same prohibition to fixed-odds betting concessions, permissions and authorizations issued by individual Brazilian states and the Federal District, which are to be wound down under the measure's transition rules.

Immediate Effect and the October 6 Deadline

Because the MP entered into force on publication, the deposit ban and advertising restrictions began the same day it was signed. According to the government's published wind-down schedule, as reported by Brazilian outlets and industry trade press, no new advertising or sponsorship agreements may be signed from that date, though campaigns already under contract may continue to run until October 5. Bettors with existing balances can request a voluntary withdrawal until 23:59 on October 5, and licensed betting sites and apps are required to go offline starting October 6.

What Happens to Deposits and Open Bets

Reporting on the measure's refund provisions, which cites Article 8 of the MP, describes an obligation for operators to segregate the funds needed for reimbursement and, within two days of taking their platforms offline, to submit individualized bettor records — including tax ID (CPF), amount owed and originating bank account — to financial institutions and to the Finance Ministry's Secretariat of Prizes and Bets. Refunds are described as automatic, requiring no request from the bettor, with funds expected to reach accounts by October 14. Any bet still open and unresolved at the time a platform shuts down is voided under this reporting, with the wagered amount refunded in full and without deduction.

State and Federal District Betting Wound Down Too

MP 1,394 does not leave state-level betting authorizations untouched. Article 2 explicitly applies the federal prohibition to fixed-odds betting concessions, permissions and authorizations granted by individual states and the Federal District, which are extinguished under the transition timetable set out in the measure.

A Separate Criminal-Penalties Bill

Alongside the provisional measure, the government sent Congress a distinct Projeto de Lei proposing tougher criminal penalties tied to the exploitation of illegal betting and its support chain. Unlike the MP, which already has legal effect, the bill is a standard legislative proposal that requires debate and approval by both houses of Congress before it could take effect. Brazilian reporting on the announcement has been careful to describe the two instruments separately, and this article does the same: no criminal penalty described in the bill is currently in force.

Industry Reaction and Market Scale

Brazil's regulated fixed-odds betting market dates to Law 13,756/2018, which first authorized the activity, and Law 14,790/2023, which built out the licensing regime that began operating in earnest around January 2025 under the ".bet.br" domain. According to trade outlet iGaming Express, the Ministry of Finance had granted 85 authorizations at R$30 million each — R$2.55 billion in total license fees — with each authorization valid for five years and covering up to three operator brands.

The national betting-industry association, ANJL, said it is already pursuing legal action to challenge the measure. Its president, Plínio Lemos Jorge, told BBC News Brasil, as reported by iGaming Express, that the association is not ruling out claims for material and moral damages, and that any reimbursement claim could exceed the R$30 million operators paid per authorization. Brazil's online betting market had previously been estimated at more than $4 billion in annual revenue, among the largest such markets globally, according to earlier Associated Press reporting.

Timing and What Remains Unresolved

MP 1,394 was signed nine days before the first round of Brazil's 2026 presidential election, scheduled for October 4, in which Lula is seeking re-election. Critics and betting-industry representatives have pointed to the proximity of the vote; the government has framed the measure as a response to household indebtedness and public-health harms it associates with betting. Neither characterization is treated here as the confirmed motive.

Like any provisional measure, MP 1,394 must still be analyzed by Congress, which can approve it as written, amend it or let it lapse, even though it is already producing legal effects. Some Brazilian gambling-law specialists have also raised questions about aspects of the measure's constitutionality; those questions remain unresolved and contested.

What Happens Next

• Now through October 5 — No new deposits or new advertising deals; bettors may withdraw existing balances voluntarily.
• October 6 — Licensed betting sites and apps are required to go offline, per the reported schedule.
• By around October 14 — Remaining balances are expected to be refunded to bettors' bank accounts, per reported operator obligations.
• Ongoing — Congress reviews MP 1,394 and the separate criminal-penalties bill; ANJL has said it will pursue legal challenges.

What has not happened: MP 1,394 has not been converted into permanent law, the separate criminal-penalties bill has not been passed, and no court ruling blocking the measure had been identified as of publication.