Brazil bans online betting and casino activity, gives players until October 5 to withdraw funds, and proposes prison terms for offshore operators and payment providers

Brazil has moved to shut down its regulated iGaming market with a temporary measure signed by President Luiz Inácio Lula da Silva on September 25, 2026. For PSPs, acquirers, and banks, the important part is not just the ban itself, but the fact that payment flow, affiliate activity, and even payments infrastructure are now named in the criminal proposal.

1. On September 25, 2026, Lula signed a Medida Provisória (temporary measure) banning the organization, offering, intermediation, and advertising of online betting, including sports betting and online casino.
2. The ban took effect immediately after publication. Regulated iGaming products in Brazil stopped accepting new players and deposits, and players must withdraw funds by 23:59 on October 5. From October 6, they must cease operations.
3. The market had been expecting a narrower restriction focused only on casino, so the full ban caught operators off guard. The temporary measure is now headed to Congress, which has 120 days to approve it or it expires.
4. Congress can approve the measure as-is, soften it — for example by keeping sports betting — or leave it untouched. The decision will be made after the elections.
5. At the same time, a criminal liability bill has been submitted to Congress. Offshore iGaming operators could face up to 6 years in prison, while advertising, affiliate activity, and payment solutions are proposed to carry 2 to 4 years. Players themselves are not punished under the draft.

Regulated operators have said they intend to challenge the ban in court and may also pursue claims against the state. Leading football clubs have opposed the move, noting that more than half of top-division teams are sponsored by regulated iGaming products.