Brazil bans fixed-odds betting, forcing licensed operators to wind down
The provisional measure, signed by President Lula, gives operators 10 days to disable platforms and 30 days for all federal authorizations to expire.
President Luiz Inácio Lula da Silva signed a provisional measure on September 25 that prohibits the operation, offering, intermediation and advertising of fixed-odds betting lotteries in Brazil.
The measure, which covers both sports betting and online casino games, entered into force upon publication.
It gives operators 10 days to make their websites and applications unavailable and establishes a 30-day period for all federal authorizations granted under the 2023 regulatory framework to expire.
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"Removing that regulated market will not eliminate the underlying demand for betting," said Jesper Søgaard, Co-CEO and Co-Founder of Better Collective. "Instead, it risks pushing millions of players toward illicit offshore operators that have not made these investments, pay no local taxes and operate without the same player protections."
The provisional measure states that the termination of authorizations is due to public interest and does not entitle operators to reimbursement of the fees paid or to compensation from the government.
As of September 24, 85 companies were authorized to operate under the federal framework, which became effective on January 1, 2025.
A federal authorization required a fee of 30 million reais and carried a five-year term.
The measure must be considered by the Brazilian Congress to become permanent law, with an initial 60-day validity period that runs until November 23.
Media and affiliate company Better Collective said the development has prompted it to cut its 2026 financial guidance, suspend its 2027-2028 targets and halt its share buyback programme.
The company said its Brazilian operations were trending toward approximately 45 million euros in revenue this year, about 12 percent of its group total.
Better Collective now expects organic revenue growth of 3 to 8 percent for 2026, down from its previous guidance of 7 to 12 percent.
Philippine operator DigiPlus Interactive Corp said it is complying with the order by processing player withdrawals and winding down its Brazilian operations.
The company said the ban is not expected to affect its overall financial or operating position materially, as Brazil was a relatively small contributor compared to its core Philippine operations.
Customers have until October 5 to withdraw any remaining balances, according to the company's statement.
Licensed betting websites and apps are to be blocked from October 6, with operators required to reconcile customer balances between October 7 and 8 and return funds between October 9 and 14.
Some operators have already suggested they will take legal action, according to DigiPlus.
Legal analysis of the measure has raised questions about its constitutionality, arguing it may violate prohibitions on the seizure of financial assets by provisional measure and infringe on the autonomy of states that had granted their own authorizations.
The process is taking place against the backdrop of the Brazilian presidential election on October 4.
Isabelle Moreau is the editor of Novello Desserts and writes about family life and everyday living in Canada. The editor signs off on corrections and editorial standards.