Brazil’s anti-betting MP takes effect immediately, but needs Congress approval within 120 days

President Luiz Inácio Lula da Silva has signed a provisional measure banning bets in Brazil, and it took effect the same day it was published in the Official Gazette. For high-risk PSPs, the key point is that the rule is already operational, but its permanent status depends on a congressional process that is still untouched.

1. The measure was announced on Friday, nine days before the first round of elections, and has an initial validity of four months. To become permanent, it must be approved by a mixed committee of deputies and senators, then by the full Chamber of Deputies and the Senate.
2. The congressional leadership has not yet set the timetable or named the rapporteur and chair of the mixed committee. Senate President Davi Alcolumbre (União-AP), who also chairs Congress, and Chamber Speaker Hugo Motta (Republicanos-PB) have not gathered party leaders to define the next steps.
3. The provisional measure has the standard 60-day term, with a possible 60-day extension, which is normally renewed by the president of Congress. That clock stops during the parliamentary recess, which only starts after Congress votes on the budget bill sent by the government.
4. If the budget is approved and Congress enters formal recess, the MP will need to be voted on in February 2027. If that does not happen, the deadline moves to January next year. In other words: the compliance clock is real, but the legislative clock is still being negotiated.
5. Lula signed the measure in São Paulo, less than three years after the government enacted the Bets Law in December 2023, which legalized the sector. Under the new rule, new deposits into betting company accounts are forbidden, sites remain available for users to withdraw balances until 23:59 on 5 October, sites will be blocked on 6 October, and remaining balances will be returned by financial institutions between 9 and 14 October if users have not withdrawn them voluntarily by 5 October. New betting advertisements are also banned.

Lula will also send Congress a bill to criminalize bets and their operators, with prison terms of two to six years. Unlike the MP, that bill only takes effect after lawmakers review it, so the immediate operational impact sits with the provisional measure and the payment rails behind it.