Brazil bans online fixed-odds betting nationwide as Lula signs Provisional Measure No. 1,394

Brazil has moved from a regulated betting market to a nationwide prohibition on fixed-odds betting after President Luiz Inácio Lula da Silva signed Provisional Measure No. 1,394 on September 25, 2026. For PSPs, acquirers, and banks, the immediate issue is not policy philosophy; it is account shutdown mechanics, refund flows, and what happens when a market that only went live on January 1, 2025 is told to stop taking deposits overnight.

1. The measure prohibits the exploitation, offering, intermediation, and advertising of fixed-odds betting across Brazil. It covers both sports betting and online casino games delivered through physical or digital channels, and it also applies to fixed-odds operations authorized by state governments and the Federal District.
2. The rules took effect upon publication and immediately stopped new funds from being added to betting accounts. The government, however, built in a transition period so customers can recover balances held on authorized platforms before access is blocked.
3. Under the announced timetable, bettors can request withdrawals until 11:59 p.m. on October 5, while betting websites and applications are scheduled to be blocked from October 6. Finance Minister Dario Durigan said: “As of today, no more money can be deposited into the country’s betting sites. The platforms will remain available so that people and bettors can withdraw their remaining balances until 11:59 p.m. on October 5.”
4. Operators must provide financial institutions with individualized information about bettors and the corresponding balances on October 6 and 7, after which banks are due to return funds between October 9 and October 14. Caixa Econômica Federal may be involved if an operational difficulty prevents a standard bank transfer.
5. The provisional measure requires operators to preserve sufficient liquidity for refunds, including available balances, wagers that become void during the closure period, and prizes that have already become payable. Funds set aside for restitution must remain segregated from the operators’ own assets during the transition.

The legal context matters here because Brazil’s regulated betting framework only began operating under federal authorization on January 1, 2025, under legislation including Law No. 14.790/2023, which expanded the fixed-odds system to cover online games and created the basis for federal regulation. In other words: a market that was built, licensed, and opened under federal rules is now being shut down under a federal measure, and the payment rails are where the operational pain shows up first.