Brazil's Betting Ban Faces Its Biggest Test This Weekend

This weekend could decide the future of Brazil's betting ban. All federal and state betting licenses will be canceled on October 25. The same day, Brazilians vote in the presidential runoff between Luiz Inácio Lula da Silva and Flávio Bolsonaro.

Provisional Measure No. 1,394/2026 bans sports betting and online casinos nationwide. Licensed sites went dark on October 6 and now redirect users to a government notice. Operators will receive no compensation for their canceled licenses.

Congress has 120 days to approve the measure or let it lapse. The ballot box and the courts may now decide its fate.

How the Betting Ban Became a Presidential Runoff Issue

Lula signed the measure on September 25, nine days before the first round. At a campaign event in Rio de Janeiro, he had pledged to end the sector. "I will have immense pleasure in putting an end to betting," Lula said. The government cites household debt and gambling addiction to justify the ban.

Bolsonaro called the decision "populist, hypocritical and politically motivated." He went on to win 47.03% of the first-round vote to Lula's 45.16%. Lula later said he believed the ban had cost him votes. Neither candidate cleared 50%, forcing the October 25 runoff. Lawmakers are not expected to debate the measure until after the runoff.

Operators Challenge the Ban in Court as the Government Fights Back

On September 28, industry groups ANJL and IBJR asked the Supreme Federal Court to suspend the ban. Justice Luiz Fux is expected to rule on the request after the runoff. The Attorney General's Office (AGU) has urged the court to uphold the measure and to schedule a new public hearing on betting.

Operator Stake briefly won an injunction to keep operating until October 25. Judge Luis Antonio Johonsom di Salvo, president of the Federal Regional Court of the 3rd Region, then suspended it at the AGU's request. His ruling cited "serious harm to administrative public order." The AGU says it also blocked 10,435 illegal websites in the measure's first week.

What the Betting Ban Costs Brazil and Signals to Latin America

Until the ban, Brazil was Latin America's largest regulated online gaming market. The market opened in January 2025, and regulators issued 85 licenses. Each cost BRL 30 million. Betting brands also sponsored 14 of the 20 clubs in Brazil's top soccer league. Neighboring countries are now closely studying Brazil's reversal.

Colombia, Mexico and Argentina have tightened oversight without banning online play.

Analysts warn that canceling licenses without compensation raises investment risk across the region.

More than 3,500 Brazilians have reportedly lost their jobs since the ban took effect.

Entain chief executive Stella David remains hopeful that operators will return. "I think the market will reopen in some form or another," she told analysts. For now, operators must wait for voters, judges and lawmakers.