Brazil Bans Online Betting Market, Reversing 2023 Legalization

Brazil’s online betting and casino market was banned last Friday, less than two years after the federal government enacted the laws that legalised and regulated it.

The abrupt reversal, formalised through Provisional Measure No. 1,394/2026, marks the end of a turbulent legislative journey that began in 2018.

The decision by President Luiz Inácio Lula da Silva caused a major stir across the country, mobilising companies that had invested in the sector, football clubs sponsored by betting companies, supporters of the ban and representatives of the regulated market.

The sector is still adapting to the shock turn of course which has seen Flutter and Betano confirm legal action is on the cards.

Sports betting was first legalised in Brazil in 2018 under Law No. 13,756/2018, but comprehensive federal rules were not established until after Lula took office for his third term in January 2023.

Under the leadership of the Ministry of Finance, headed by Fernando Haddad, the government set the regulation of the fixed-odds betting market as an objective to boost federal tax revenue.

After months of discussions, the National Congress approved Federal Law No. 14,790, which was enacted on December 29, 2023.

The final text established a tax of 12 per cent of operators’ revenue and came to cover online gambling, broadening the scope of the regulated market.

In a 2023 interview, Minister Fernando Haddad argued that the expansion of digital technologies made it necessary to recognise the existence of the market and establish rules.

“The digital world has brought about such a huge change in people’s habits that it is difficult, given the global computer network, to prevent someone from placing a bet,” Haddad said.

He added, “The right thing to do is recognise the issue and regulate the gambling sector to prevent people from becoming addicted and to stop those who already gamble heavily from betting more.”

The year 2024 was devoted to implementing the new rules, including the creation of the Secretariat for Prizes and Betting (SPA).

The issue has gained prominence in the national debate in the run-up to the presidential elections, with the Brazilian elections on Sunday, October 4, set to have a decisive impact on the direction of the provisional measure.

Brazil’s Congress has 120 days, plus planned recess, to either ratify the bill or reverse it.

The Brazilian government has said that payments made via PIX, Brazil's most popular payment method, have fallen by 10 per cent since the imposition of the ban.

Igaming affiliate Gentoo Media has pushed its 2026 revenue guidance down following the initial 120-day provisional measure.

Gentoo now expects its full-year revenue to drop from a range of between €97m and €100m to €92m.

“Brazil has been an investment market for Gentoo Media, with continued investment in customer acquisition and market presence to build the company's long-term position,” the affiliate said.

From January to August 2026, Brazil generated approximately €3.8m in net revenue for Gentoo Media.

The revised guidance assumes no further betting and online gaming revenue from Brazil for the remainder of 2026.