Provisional measure issued to ban fixed-odds betting in Brazil

On September 25, 2026, the Brazilian government issued Provisional Measure No. 1,394 to prohibit operating, offering, brokering, and advertising for fixed-odds betting on sporting events and online games. The restrictions also apply to operations conducted under state and Federal District concessions, permits, and authorizations.

Betting operators’ obligations during the transition period include:

• New deposits prohibited: With immediate effect, no new funds may be deposited into transactional accounts. In other words, betting operators may not accept deposits from bettors.
• Betting websites and apps to be deactivated: Betting operators have ten days (until October 6, 2026) to disable users’ access to websites and apps used to offer fixed-odds betting services. Accordingly, bettors have until October 5, 2026, to voluntarily withdraw deposited funds from their betting accounts.
• Open bets: Any fixed-odds bets already placed whose results have yet to be determined by the time the relevant betting platform is deactivated will be deemed null and void. In such cases, the bettor will be entitled to a full refund of the amounts wagered, with no deductions of any kind permitted.
• Account balance refunds: Once operators have taken their websites and apps offline, they will have two days to:
  • Ensure the availability and liquidity necessary to fully refund amounts owed to bettors who have yet to withdraw their outstanding account balances, including available funds, amounts corresponding to bets deemed null and void, and prizes owed;
  • Provide financial institutions and payment institutions with an individualized list of bettors (identified by their individual taxpayer registration – CPF), specifying the amounts and source accounts; and
  • Submit this information to the Brazilian Ministry of Finance’s Secretariat of Prizes and Betting (SPA), together with evidence that the funds are available. Funds designated for refunds must be segregated from the operators’ assets, and non-compliance will subject the operator to daily fines of BRL 200,000.

Any concessions, permits, and authorizations granted under Law No. 14,790/2023 will be terminated 30 days after the MP’s publication date, without prejudice to obligations applicable during the transition period. As this termination is deemed to be in the public interest, betting operators are not entitled to be reimbursed for any amounts paid in granting such licenses, nor entitled to compensation from the Brazilian government, as per Article 4 of the provisional measure.

In addition to the direct impacts on the fixed-odds betting sector, the new provisional measure establishes obligations for other sectors involved in operating and promoting fixed-odds betting as a way of ensuring the ban is effective.

Impacts on financial institutions and payment institutions

• A ban on Transactions: With the exception of transactions necessary for winding down operations and refunding bettors, no institution may process, settle, or facilitate transactions for fixed-odds betting in Brazil. Payment arrangement operators must include rules in their regulations to ensure all participants comply with the ban (including participants not subject to authorization by the Brazilian Central Bank), and must take the necessary measures in the event of non-compliance, including expelling the relevant participant.
• Bettor refunds: Financial institutions and payment institutions will have seven days to return funds to bettors (preferably to the original account) once they have received the necessary information provided by the operators. They must also inform the SPA of the amounts refunded and not refunded and transfer any remaining amounts to a dedicated account at Caixa Econômica Federal. The Brazilian Central Bank will establish the procedures for rejecting transactions and processing interbank refunds.

Advertising restrictions and impacts on app providers and app stores

• Application providers: Internet application providers have a duty of care to prevent their services from circulating content that offers, promotes, advertises, or facilitates access to fixed-odds betting. Moreover, if notified by an authority within Brazil’s National Consumer Protection System or Ministry of Justice and Public Security, they must remove any third-party-generated content that violates the provisions of Provisional Measure No. 1,394/2026.
• App stores and operating systems: App stores and operating systems must prevent products or services related to fixed-odds betting from being made available on their systems.
• Advertising and sponsorship: All communications, advertising, promotional, marketing, and sponsorship activities relating to fixed-odds betting – including content that offers, promotes, advertises, or facilitates the Brazilian public’s access to such betting – are prohibited in any physical or digital medium. Advertising materials and sponsor trademarks must be removed within ten days of the provisional measure’s publication date.
• Enforcement and website blocking: Both Brazil’s Ministry of Finance and Ministry of Justice and Public Security may request websites offering fixed-odds betting to be blocked or redirected. The Brazilian Telecommunications Agency (Anatel) will distribute such orders to telecommunications service providers, and Brazil’s Internet Management Committee (CGI.br) will handle orders relating to ‘.br’ web domains.

Provisional Measure No. 1,394/2026 took immediate effect on its publication date (September 25, 2026). Although it already has legal force, it must still be reviewed by Brazil’s Congress before being formally enacted as law. The provisional measure remains valid for 60 days and may be extended once for an additional 60 days, for a maximum of 120 days. If it is not converted into law within that period, the provisional measure will lose effect as of the date it was issued, and Congress will be responsible for regulating the legal relationships arising from it by legislative decree.

For more information on this topic, please contact Mattos Filho’s Entertainment, Banking & Finance, and Litigation & Arbitration practices.