Brazil’s regulated iGaming market shuts down after nationwide fixed-odds betting ban

Brazil’s fixed-odds betting operators had until October 4 to wind down after President Luiz Inácio Lula da Silva signed Provisional Measure No. 1,394/2026 on September 25. For PSPs and acquiring teams, the immediate issue is straightforward: a regulated market that only opened in 2025 has been told to stop, and the next destination for that volume is the usual mess of unregulated alternatives.

1. Brazil regulated iGaming in 2025 under the Secretariat of Prizes and Betting, which opened the door to licensed gambling operators and a new government revenue stream. The new ban now threatens to unwind that setup, including for legacy operators that were already active before the updated licensing regime.
2. Lula said the move was driven by concern that regulated gambling was hurting Brazilians. He pointed to internal polling by the Workers’ Party showing that most Brazilians opposed gambling platforms. The source also cites a recent study saying more than two million Brazilians are suffering from clinical gambling addiction, while another seven and a half million are classified as problem gamblers.
3. The political timing is awkward: the ban landed during Brazil’s general elections, and some experts think it may have contributed to the President’s weak first-round performance. Lawmakers, meanwhile, reportedly viewed an outright ban as too drastic, even if public sentiment was against the spread of gambling platforms.
4. Operators are expected to seek compensation from the government. They paid significant sums for Brazilian gambling licenses on the assumption that the market would be fair and stable, and the article says they could also sue for missed profits if licensed play is later allowed to resume.
5. A 2025 study commissioned by the National Association of Games and Lotteries and the Brazilian Institute for Responsible Gaming found that the industry provided over 15,000 jobs. That matters for payment providers because the operational shock is not just theoretical: operators warn that if the ban remains in place, layoffs may be unavoidable.

The next political round matters. Some industry representatives think a win by Flávio Bolsonaro, Lula’s top rival, could restore Brazil’s regulated gambling industry, although the source says any comeback would likely come with stricter rules to address public concern.