Brazil implements ban on fixed-odds betting and online casinos

Brazil is undergoing a major regulatory shift in its gambling sector following President Luiz Inácio Lula da Silva’s signing of Provisional Measure 1.394, which bans fixed-odds betting and online casinos. The measure requires all licensed platforms to go offline by 6 October 2026, though players were permitted to withdraw balances until 5 October.

Market data indicates a significant divergence in demand following the ban. Licensed onshore brands experienced a massive decline, with demand dropping between 83% and 94% below pre-ban averages. Major brands such as Betano, Bet365, and Superbet saw losses exceeding 89%. Conversely, offshore brands maintained relatively stable demand, seeing only a 10% dip compared to September levels.

The crackdown has faced legal and social challenges. A federal court in Sao Paulo allowed certain operators to continue working until the end of October under stricter player protection conditions. Industry associations have appealed to the Supreme Court, arguing that the government failed to study the economic and fiscal consequences. Additionally, major football clubs including Flamengo, Sao Paulo, and Botafogo have expressed opposition.

Separately, CAIXA Econômica Federal reported the revocation of 12 lottery commercialization permits in August 2026, bringing the total number of withdrawn authorizations to 110 for the first eight months of the year.