Brazil’s betting ban decree leaves operators without compensation for license cancellations

Brazil’s provisional measure shutting down bets says the government does not have to reimburse operators for early termination of their licenses, and it does not have to return the fees already paid. That matters for high-risk payment teams because the rule hits both the operating model and the sunk cost of market entry at the same time.

1. The measure says the licenses will be extinguished 30 days after publication, which happened last Friday. Before that, from October 6, websites and apps must be taken offline.
2. So far, 85 authorizations have been granted at a cost of R$ 30 million each, for a total of R$ 2.55 billion collected from companies. Under the new rule, that money is not being returned.
3. The text says the termination is based on public interest. On that basis, companies are denied any full or partial refund of the authorization fee and any compensation from the public authorities, including for investments made, expected profits, and the expectation of continuing operations.
4. The licenses had previously been valid for five years and allowed each company to operate up to three brands. The measure changes that framework by ending the authorizations early rather than letting them run their course.
5. The industry can challenge the measure in court, and the issue may still be reviewed by Congress, which can approve, amend, or reject the text. Separately, operators remain responsible for customer balances, betting prizes already determined within the required period, and full refunds of bets that become void when the platforms go offline.