Brazil to revoke 85 betting licences on Sunday after Provisional Measure 1,394 upends the regulated market

Brazil will revoke 85 betting licences on Sunday, cutting short a market that had only been operating under regulation for a year and nine months. For PSPs and high-risk operators, the immediate issue is not just lost authorisations but the mechanics of licence withdrawal, frozen acceptance of deposits and bets, and a regulatory fight that is still moving through the Supreme Federal Court (STF).

1. The 85 licences for sports betting operators in Brazil will be revoked as of this Sunday. The companies paid a BRL30 million ($6 million) grant, plus a BRL5 million security deposit, and almost 190 brands that had been operating in the licensed market lost authorisation under MP 1.394, without any return of the amounts paid for the grants.
2. Brazil’s regulated sports betting and online gaming framework was built by the Secretariat of Prizes and Bets (SPA) and included strict operating rules: accredited international laboratories, programmes to combat problematic gambling, KYC rules with biometric identification, and technical and financial requirements. The regime also created an oversight fee to keep the ecosystem compliant with legal requirements.
3. The trigger was Provisional Measure 1,394, issued on the night of 25 September, which prohibited online betting to “protect families from indebtedness.” It took effect immediately, so operators were prevented from accepting deposits and bets at once and had only a few days to return customer balances.
4. Carlos Lima, president of the Brazilian Institute for Responsible Gaming (IBJR), said companies had structured complex operations planned for amortisation over 60 months. He said almost BRL2.6 billion had been paid in grants and approximately BRL7.5 billion in capital contributions by operators, with a multiplier effect of BRL28 billion in the economy.
5. The IBJR and the National Association of Games and Lotteries (ANJL) filed lawsuits with the STF, joined by the Brazilian Association of Radio and Television Broadcasters (Abert) and football clubs. The STF has not yet ruled on the constitutionality of the provisional measure, even as the 30-day deadline for licence revocation has now run out.

For payment providers, the practical takeaway is simple: Brazil has moved from a licensed model with biometric KYC and formal oversight fees to a market where the legal status of those same operators is being reversed by executive action. If you are pricing or underwriting Brazilian exposure, the licence status and the STF outcome are now the variables that matter.