Brazil’s sports betting licences expire on October 25, putting 85 federal authorisations at risk

Brazil’s federal sports betting licences may be extinguished this Sunday, October 25, after the 30-day deadline in Article 4 of MP 1.394/2026 runs out before Congress votes on the measure. For operators, PSPs, and banks touching the market, the immediate issue is simple: without a valid authorisation, no site can legally offer fixed-odds betting in Brazil.

1. Brazil granted 85 federal authorisations to 82 companies for fixed-odds betting, and those permits together cost R$ 2.55 billion. Each authorisation cost R$ 30 million and was valid for five years, but the MP would extinguish them without refunding the amounts paid by operators.
2. The regulated market began operating in January 2025 under Law 14.790/2023, with authorisations issued by the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance. To receive a licence, companies had to meet technical, financial, and security requirements, pay the fee, and operate under federal oversight.
3. The government said in the MP published on September 25 that the authorisations were provisional and prohibited betting offers and advertising, while revoking most of Law 14.790/2023. In practice, that is the kind of regulatory move that breaks settlement, marketing, and compliance planning in one shot.
4. The Brazilian Institute of Responsible Gaming (IBJR) said the measure undermines real-time betting monitoring and increases legal uncertainty for investors in regulated sectors. Carlos Lima, IBJR’s chief executive, said the sector had also integrated around R$ 7.5 billion in share capital and built operations designed to be amortised over 60 months.
5. According to estimates from LCA Consultoria Econômica and Cruz Consulting, the investments could have a multiplier effect of up to R$ 28 billion in the economy. The money went into bettor-protection systems such as CPF verification, facial recognition, integration with the Betting Management System (Sigap), and contracts with football clubs, arenas, and technology suppliers.

The ANJL said more than 3,500 workers were dismissed in the first 14 days of the MP’s validity. For payment providers and acquirers, the practical takeaway is that Brazil’s regulated betting stack is now tied directly to the fate of MP 1.394/2026, with no valid authorisation meaning no legal betting traffic in the country.