Brazil Abruptly Scraps Its Regulated Betting Market, Raising Fears of an Illegal-Site Surge

On September 25, President Luiz Inácio Lula da Silva signed a provisional measure banning the operation, offering and advertising of fixed-odds betting and online casino gaming across Brazil. It reverses the framework created by the 2023 law he signed, under which the regulated market launched on January 1, 2025. Lula cited household debt and gambling addiction as reasons.

Under the reported transition, customers had until October 5 to withdraw balances, betting sites and apps must be offline by October 6, and any remaining funds are to be returned through operators' banking partners between October 9 and 14. Brazil had issued 85 five-year authorizations costing R$30 million each, and operators reportedly get no refund. Government officials are also preparing a bill that would create criminal offenses tied to betting. Regulated operators paid billions of reais in taxes this year, which the ban now ends.

Reaction has been sharp. Football clubs warn of losing their biggest sponsors, an industry body warns players will drift to unprotected illegal sites, and Casino.org later reported illegal sites surging while the ban faces a Supreme Court challenge. The move came days before the October 4 presidential election, in which Lula sought another term, and polls suggest the ban is popular with voters.