Brazil Betting Ban Enters Refund Phase as Sites Go Dark

Brazil's regulated betting market has entered its refund phase after the Oct. 6 deadline for licensed operators to take their sites and apps offline. Operators must now report customer balances to banks on Oct. 7 and 8.

The shutdown follows Provisional Measure No. 1,394, which President Luiz Inácio Lula da Silva signed on Sept. 25. It bans fixed-odds betting nationwide, covering both sports betting and online casino games. Lottery products governed by separate legislation are not affected. The measure remains in force while Brazil's Supreme Court weighs several legal challenges to it.

Key Dates for Brazil's Betting Shutdown, Refunds, and Licenses

From the day it was published, the measure barred new deposits and the approval of new licenses. Bettors had until 11:59 p.m. Brasília time on Oct. 5 to voluntarily withdraw their balances.

Starting Oct. 6, operators had to take their sites offline and pull their apps from app stores. Sites that remain online face blocking, with telecom regulator Anatel distributing the blocking orders.

Banks must return any remaining balances between Oct. 9 and 14. State-owned lender Caixa Econômica Federal will take over any stalled repayments from Oct. 14.

Federal licenses will be revoked on Oct. 25, and operators will not get their license fees back.

Finance Minister Dario Durigan said the ban affects 85 licensed operators and about 180 legal brands.

Betting Ban Faces Legal Challenges and a Vote in Congress

On Sept. 28, the National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR) asked Supreme Court Justice Luiz Fux to suspend the measure until Congress votes on it. Alternatively, they requested at least six months to wind down operations.

Three direct challenges to the measure, filed by ANSEJA, ANJL, and the mayors' association ANPV, are now before Fux. On Oct. 2, Fux gave the Attorney General's Office 72 hours to respond. As of Oct. 7, Fux had not ruled.

Congress must also approve the measure within 120 days for it to become law. Lawmakers can approve it as is, amend it, or reject it.

What the Ban Means for Tax Revenue, Operators, and Site Blocks

Regulated betting generated nearly BRL 7.3 billion (about $1.4 billion) in tax revenue in the first half of 2026. On Sept. 28, Entain lowered its forecast for 2026 online net gaming revenue growth to between 4% and 6%. The company had expected Brazil to deliver about 5% of its online revenue this year. Entain said it was "disappointed by this sudden development" and confirmed that its Brazilian operations are complying with the measure.

Flutter estimated the ban could cut about $70 million from its 2026 revenue. Between Sept. 27 and 29, the government requested that 5,209 illegal betting sites be blocked, and Anatel had ordered 2,387 of them taken down by Sept. 29. The government also flagged 186 apps for removal from the Apple App Store and Google Play by Oct. 6.