Brazil bans fixed-odds betting operations, advertising, and payment processing for foreign operators

Brazil has rolled back its regulated online gambling model, and the practical effect for PSPs is blunt: payment providers were told to stop processing gambling transactions immediately, except refunds to customers. For operators with CIS roots and any remaining Brazil-facing traffic, the problem is no longer just licensing friction; it is now exposure to criminal and enforcement risk.

1. On 25 September, the authorities adopted Measure No. 1394, which bans the operation, offering, brokerage, and advertising of fixed-odds bets, including by foreign operators. Site and app blocking is set to begin on 6 October.
2. Licenses will be cancelled 30 days after the measure’s publication, with no refund of fees. That matters because the exit is not being handled as a soft wind-down; the legal basis for continued operations is being removed on a fixed timetable.
3. Payment providers were immediately prohibited from handling gambling transactions, with one exception: refunds to customers. For acquirers, PSPs, and partner banks, that is the line to watch, because the rule targets the money flow as directly as the front-end product.
4. After the ban was adopted, an interagency group had already blocked 506 resources. In other words, enforcement is not waiting for the market to adapt.
5. The Federal Police are also investigating schemes involving illegal casinos, money laundering, capital transfers abroad, and shell companies. According to VChK-OGPU and Rucriminal(.)info, criminal cases are expected against owners and executives, with possible international wanted notices and extradition.

The government is preparing a separate bill that would set penalties at 4 to 6 years in prison for organizing and promoting betting, and 2 to 4 years for payment intermediaries. The other point for high-risk operators is that offshore registration and even physical presence outside Brazil do not automatically shield owners or participants from claims by Brazilian authorities if the business continues serving Brazilian users.