Brazil has abruptly reversed course on regulated gambling, ordering licensed sportsbooks and online casinos to shut down as players face an October deadline to recover their funds.
Betting Sites Must Go Dark on October 6
Brazilian President Luiz Inácio Lula da Silva has signed Provisional Measure No. 1,394, banning fixed-odds sports betting and online casino games across the country.
The measure, published on September 25, prohibits the operation, offering, intermediation and advertising of fixed-odds betting. It covers both sports betting and virtual online games, while other lottery products already permitted under Brazilian law are excluded.
For players, the change is already underway. Operators can no longer accept new deposits, while customers have until 11:59pm on October 5 to voluntarily withdraw money held in their betting accounts.
Licensed betting websites and apps must become unavailable from October 6.
What Happens to Player Balances?
The shutdown does not mean customers lose money sitting in their accounts.
Operators must report remaining balances to financial institutions on October 7 and 8, with funds linked to each player’s CPF identification number. Banks are then expected to return the money between October 9 and 14.
Where repayment through the normal banking process cannot be completed, Caixa Econômica Federal can step in to handle the refund.
Open bets that have not been settled by the shutdown deadline will be voided and refunded in full. Winnings from bets decided before the deadline must still be paid.
For the average Brazilian casino or sportsbook customer, the message is fairly simple: withdrawing before October 5 is the most straightforward route rather than waiting for the automatic refund process.
Brazil Reverses Its Regulated Market
The decision represents a dramatic change for a market that only formally launched its federal regulated betting regime in January 2025.
Brazil granted 85 operating authorisations, each carrying a R$30 million fee, according to the Ministry of Health. Those licenses generated R$2.55 billion for the government. The new measure says operators will not be entitled to reimbursement of license fees or compensation from the government when their authorisations are terminated.
The government has presented gambling-related health and financial harms as central reasons for the change.
Industry Prepares to Fight Back
The story may not be finished.
The measure has immediate legal force but requires approval from Congress within 120 days to remain in effect. Brazil’s Senate confirmed on September 28 that the measure has begun its passage through Congress.
Operators and industry groups are also considering legal challenges. Betano is preparing legal action to protect rights connected to its five-year license, while Entain has criticised the sudden change and is complying with the shutdown requirements.
Meanwhile, the government is preparing for operators that refuse to leave. Authorities can seek the blocking of illegal gambling websites, with enforcement involving Anatel and other federal bodies.
For Brazilian players, though, the immediate calendar matters more than the coming legal fight: deposits are closed, withdrawals run until October 5, and licensed betting sites are scheduled to disappear the following day.
