Brazil operators start winding down local presence as websites go dark and refunds move to banks

Licensed gambling operators in Brazil have been ordered to take their websites and apps offline starting today, 6 October, after President Lula da Silva’s provision banned all legal gambling. The part that matters for PSPs and banks: operators now have a narrow window to pass balance data so refunds can be processed for bettors whose funds are still sitting in accounts.

1. From today, 6 October, previously licensed operators must take all their websites and apps down. The government is also reportedly redirecting visitors to brasilsembets.br, a placeholder page used to signal that a gambling website is illegal.
2. During tomorrow, 7 October, and 8 October, companies must provide banks with all details on the net amounts still held in bettors’ accounts. That data is needed so balances can be refunded accordingly, which puts banks and payment providers directly into the middle of the shutdown process.
3. Bettors had until 5 October to withdraw funds themselves. Anyone who missed that deadline will have to wait for refunds to be issued between 9 October and 14 October by banks and payment providers.
4. The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gambling (IBJR) have appealed the decision to Supreme Court Minister Luiz Fux. Their argument is practical, not philosophical: they say the redirect could affect around 100 million visits per day and make it harder for operators to keep refund systems and customer support running during the transition period.
5. Lula’s provision to end licensed gambling came into force on 26 September, just over two years after he signed the legislation into law. The timing has become part of the political noise around the presidential election, with the second round set for 25 October, but the payment issue is the immediate operational one: balances, refunds, and who is left holding the coordination burden.

For high-risk PSPs, this is the familiar post-exit headache: once the commercial activity is shut down, the financial obligations do not disappear with the website. Refund flows, bank coordination, customer support, and system uptime all still matter — and the regulator has now put a date on every step.