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What Brazil’s online betting ban means for European operators

By jili tutorial · September 29, 2026

What Brazil’s Online Betting Ban Means for European Operators

Introduction: A Sudden Shutdown in the World’s Fifth‑Largest Betting Market

On 25 September 2026, Brazil’s President Luiz Inácio Lula da Silva signed Provisional Measure No. 1.394, effectively shutting down the country’s regulated online sports betting and casino market less than two years after it opened. The ban took effect immediately, halting new deposits and ordering all licensed operators to cease operations within days. For European giants such as Entain, Allwyn, Evolution, and Flutter, the move represents a major disruption to a key growth region.

This guide breaks down what the provisional measure contains, why it was enacted, how it affects the biggest listed operators, what the industry is doing in response, and what the coming months in Brazil’s Congress could mean for the future of legal betting in the country.

1. Understanding the Provisional Measure

1.1 What Is a Provisional Measure?

In Brazil’s legal system, a provisional measure (Medida Provisória) has the force of law immediately upon publication. However, it must be approved by the National Congress within 120 days (including a potential recess) to become permanent. During that period, Congress can reject, approve, or amend the measure. This creates a window of uncertainty that operators must navigate.

1.2 Key Provisions of the Ban

The measure bans the:

Important exemptions: Other lotteries permitted under Brazilian law are unaffected.

License cancellation:

1.3 Shutdown Timeline

The government published a strict timetable on the day the measure took effect:

DateAction
25 SeptemberMeasure published; new deposits banned.
By 23:59 on 5 OctoberLast day for players to withdraw balances. Operators must remove all physical/outdoor advertising and sponsorships.
From 6 OctoberBetting sites and apps go offline.
7–8 OctoberOperators send remaining balances (listed by each player’s CPF tax number) to their banks.
9–14 OctoberBanks return balances to players.
From 14 OctoberState‑owned Caixa Econômica Federal handles any unreturned refunds.
25 OctoberAll licences terminate (30 days after publication).

Non‑compliance penalties: Operators that fail to secure player funds and submit refund lists within two days face a daily fine of R$200,000. Broader sanctions range from warnings to fines of up to R$2 billion.

2. Why the Ban Was Introduced

2.1 Public Health Rationale

The government presented the ban primarily as a public health measure. Official figures show that in 2023, 10.9 million Brazilians exhibited risky or problem gambling behaviour. The administration argued that the rapid expansion of legal betting, combined with aggressive advertising, had worsened gambling addiction and related social harms.

2.2 Political Context

The ban came just ahead of Brazil’s first‑round presidential vote on 4 October 2026, with polls showing Lula in a tight race with Senator Flávio Bolsonaro. By acting decisively against a market widely criticised for its social costs, the government signalled a populist, consumer‑protection stance during a sensitive election period.

3. Impact on European Operators

3.1 Entain – Lowered Guidance

Entain disclosed in a stock exchange statement on 28 September that:

Entain stated: “Entain is disappointed by this sudden development without consultation of industry stakeholders regarding its significant adverse consequences. However, Entain’s operations in Brazil are complying with the provisional measure.”

Market reaction: Entain shares were trading 1.67% lower at 442.10p at 09:25 UK time on 28 September.

3.2 Allwyn – Betano’s Largest Market Hit

Allwyn owns 36.75% of Kaizen Gaming, the operator of the Betano brand. Betano received a five‑year licence on 1 January 2025 and has since made Brazil its largest market. Allwyn said:

3.3 Other Exposed Operators

According to JPMorgan, the listed companies most exposed to Brazil include:

For all these firms, the ban creates immediate revenue gaps and raises questions about the stability of regulatory regimes in emerging markets.

4.1 The National Association of Games and Lotteries (ANJL)

ANJL issued a statement arguing that the ban will push more than 30 million bettors into the arms of thousands of illegal sites, disregarding the investments licensed operators made in good faith. The association said it will challenge the measure in court.

4.2 Open Letter from Ivo Doroteia (Lotus iGaming Group)

Ivo Doroteia, founder and CEO of Lotus iGaming Group, published an open letter on LinkedIn on 25 September. With over 20 years in regulated gaming (including CEO roles in the UK), Doroteia claimed he participated in the development of Brazil’s regulated market from an early stage. He warned:

“If legal and regulated operators disappear, does the demand for betting disappear with them or does it simply move to the illegal market?”

He further argued: “Prohibiting legal supply does not necessarily eliminate demand. Any decision must seriously consider the risk of moving consumers from the regulated market into the illegal one.” He reminded the industry that a provisional measure takes immediate effect but does not conclude the legislative process. His advice: “Read the text. Study it. Understand its effects.”

Kaizen Gaming (Betano) is expected to file a lawsuit challenging the cancellation of its five‑year licence, arguing that the government’s action violates the terms under which it invested and obtained approval.

5. What Happens Next in Brazil’s Congress

5.1 Congressional Approval Process

The provisional measure has immediate force but must be approved by Congress within 120 days (including the legislative recess). If not approved, it lapses. Congress may also amend the text.

Entain told investors that the longer‑term outcome remains uncertain during this period. The government has already drafted a bill that would make five betting‑related acts crimes, but that bill still needs congressional approval.

5.2 Proposed Criminal Penalties

The parallel bill would introduce the following crimes (if approved):

ActPrison SentenceFine
Running fixed‑odds betting (even with a foreign licence)4–6 years–
Advertising betting or recruiting players2–4 yearsYes
Using personal data to recruit players (higher penalty if data includes betting history, health, or minors)2–4 yearsYes
Facilitating betting payments2–4 yearsYes
Providing betting apps (higher penalty if app bypasses age/location checks or targets minors)2–4 yearsYes

If enacted, these penalties would effectively criminalise any involvement in Brazil’s betting market, including by foreign companies.

6. Broader Implications for European Operators

6.1 Short‑Term Financial Hits

6.2 Long‑Term Regulatory Risk

The Brazil case highlights the vulnerability of legal markets to sudden political and regulatory reversals. European operators that have invested heavily in emerging markets may now reassess the risk premiums attached to such jurisdictions. The ban also offers a cautionary tale about the importance of diversified revenue streams.

6.3 Potential Shift to Illegal Market

As ANJL and Doroteia point out, demand does not disappear. If legal operators exit, illegal websites – already numbering in the thousands – will fill the void. This could leave consumers with no consumer protections, no responsible gambling tools, and no tax revenue for the state.

7. Key Takeaways and Timeline Summary

Operators should monitor congressional debates, prepare legal challenges, and consider contingency plans for re‑entering the market if and when regulation is re‑established. For now, the message from Brasília is clear: the era of legal online betting in Brazil has come to an abrupt halt.