Bets and virtual casinos face an immediate ban in Brazil as operators prepare legal challenge

Brazil’s electronic betting platforms are preparing to go to court after President Lula signed a provisional measure banning bets and virtual casinos, including “Jogo do Tigrinho,” and publishing it in an extra edition of the Official Gazette on Friday (25). For payment providers, the key point is immediate: deposits are already blocked, advertising is out, and operators have a short window to return customer balances before banks step in.

1. The ban was issued as a Medida Provisória (provisional measure), so it took effect immediately, but it still needs approval within 120 days by the Chamber of Deputies and the Senate to become permanent law.
2. Lula also sent Congress a bill that would set penalties for anyone who operates, runs, or advertises these platforms. Murilo Passarinho, director of government relations at the National Association of Games and Lotteries, said the immediate effect of the measure creates urgency around the case.
3. Carlos Lima, president of the Brazilian Institute of Responsible Gaming, said companies will seek refunds of the licensing fees they paid and reimbursement for their investments. He also said the decision removes protections for the Brazilian public against the illegal betting market. Finance Minister Dario Durigan said he was concerned about that possibility during the announcement.
4. According to the text, the federal government had collected about R$ 2.5 billion in fixed licensing fees from sports betting since regulation began. The fee per company is R$ 30 million, and the license is valid for five years.
5. Durigan said it is no longer possible to place money on betting sites in the country, and advertising contracts are no longer allowed. The sites will remain available only so players can withdraw remaining balances until the end of October 5; if a user cannot withdraw in time, the banks servicing the bets will return the funds between October 9 and 14.

The provisional measure also orders the removal of all advertising, propaganda, and marketing materials for bets, both physical and digital, within the same deadline. Penalties for non-compliance range from warnings to fines that can reach billions of reais, plus partial or total suspension of operations. The same deadline applies to sponsorship contracts.