Brazil: Betting sites go offline today after provisional measure

Betting suspension takes effect this Tuesday

The ban imposed by the federal government takes effect today, October 6, after the deadline for bettors to voluntarily withdraw the funds available on the platforms expired on Monday.

According to data released by the Ministry of Finance, R$775.6 million was withdrawn by users since Saturday (26), one day after the provisional measure was published. During the same period, the number of CPFs with positive balances on the platforms fell from 28.9 million to 26.54 million, a reduction of 2.36 million.

Despite the withdrawals made, R$1.33 billion remained on the platforms as of Monday afternoon (5). The deadline for voluntary withdrawals ended at 11:59 p.m. that day.

Financial flows also affected

The measure has also caused a significant reduction in the financial flows associated with sports betting and fixed-odds games.

On Friday (2), Finance Minister Dario Durigan said that, since the provisional measure was issued, “an amount of R$600 million stopped being sent every day to accounts” at betting companies, according to data from the Central Bank.

According to the minister, part of these funds began to be directed toward other sectors of the economy.

How the remaining balances will be returned

Bettors who were unable to withdraw their funds within the voluntary withdrawal period will not automatically lose the money. The provisional measure establishes a schedule for returning the remaining balances.

Between October 7 and 8, companies must notify financial institutions of the amounts that remained on the platforms, broken down by CPF. Subsequently, between October 9 and 14, banks must return the funds to the respective bettors.

If there is any obstacle to the refund, the funds will be transferred, starting October 14, to Caixa Econômica Federal. The institution will be responsible for returning the funds to users.

Schedule for bettors

• Until 11:59 p.m. on October 5: deadline for voluntarily withdrawing funds from the platforms.
• From October 6: betting websites and apps stop operating.
• October 7 and 8: companies notify banks of the balances not withdrawn, broken down by CPF.
• October 9 to 14: banks return the funds to bettors.
• From October 14: funds whose return encounters an obstacle will be transferred to Caixa Econômica Federal.

Betting sector turns to Supreme Court over ban

As the suspension takes effect today, organizations representing the gaming and betting sector are awaiting a decision from Brazil’s Supreme Federal Court (STF) on lawsuits filed against the provisional measure.

Justice Luiz Fux will be the rapporteur for the cases challenging the government measure. The National Association of Games and Lotteries (ANJL), the Brazilian Institute for Responsible Gaming (IBJR), and the National Association for Legal Security in Games and Betting (Anseja) have asked the STF to suspend the effects of the provisional measure.

The organizations are requesting that the ban be suspended until Congress completes its review of the measure or until the Supreme Court issues a final ruling on the case.

Industry organizations challenge urgency and legal certainty

In the request submitted to Justice Fux, the associations argue that the ban has immediate and difficult-to-reverse effects. They also maintain that the government failed to demonstrate the urgency required to introduce a change of this magnitude through a provisional measure.

Another issue raised by the sector is legal certainty. The organizations argue that companies authorized to operate in the Brazilian market made investments and complied with regulatory requirements established by the government itself.

The Executive Branch, meanwhile, argues that the ban aims to contain the social and economic impacts associated with betting, including household indebtedness and problems related to gambling addiction.

Provisional measure still needs congressional approval

Although the ban on betting companies takes effect today, Provisional Measure No. 1,394/2026 still needs to be reviewed by Brazil’s National Congress.

Congress will have up to 120 days to assess the text and decide whether to turn it permanently into law. In the meantime, the betting sector is also monitoring the lawsuits before the STF, which could alter the effects of the measure adopted by the government.

For Brazil’s regulated betting market, the decision represents an immediate shift in the landscape built following the implementation of the authorization regime for betting companies, while operators, industry organizations and bettors await the next steps in Congress and before the Supreme Court.