Regulation

Brazil's Betting Ban Raises Alarm Across Latin America

Provisional Measure 1,394 ended Brazil's licensed betting market. Lawyers across Mexico, Colombia, Peru, Uruguay and Chile warn of legal uncertainty, while Congress and the Supreme Court decide whether the ban survives.

By the iGaming Express teamOctober 20, 20267 min read
Phone displaying a pause symbol behind a barrier, with Brazilian civic architecture in the background.
Short answer

Brazil banned fixed-odds betting and online casino through Provisional Measure (MP) 1,394, signed by President Lula on 25 September 2026, replacing the licensed market created by Law 14,790/2023. Licensed sites went offline in early October and authorizations end on 25 October 2026. The ban is not final: Congress must convert the measure into law, lawmakers have filed 97 amendments, several of which would restore regulation, and six constitutional challenges are before Supreme Court Justice Luiz Fux, who is expected to rule after the 25 October presidential runoff. Industry lawyers across Latin America warn the abrupt ban damages legal certainty and will push players to illegal sites.

Key takeaways
  • MP 1,394 of 25 September 2026 prohibits fixed-odds betting and online casino in Brazil, ending the Law 14,790/2023 licensing regime.
  • The measure must be approved by Congress: 92 amendments remain, it starts blocking the agenda on 9 November and expires on 23 November unless extended by 60 days.
  • Six constitutional actions sit with Justice Luiz Fux, who is expected to decide on interim relief after the 25 October runoff.
  • Licensed operators that paid authorization fees and built local operations now face losses; refund and compensation claims are likely.
  • Peers in Mexico, Colombia, Peru, Uruguay and Chile see the ban as a warning on legal certainty, not a regional trend. Peru, Colombia and Mexico remain open routes.

Brazil spent years building one of the most detailed betting frameworks in the world, then dismantled it with a single decree. Provisional Measure 1,394 has turned the region's largest regulated market into a prohibition market, and lawyers and associations across Latin America are now asking what a license is worth if it can disappear overnight.

What Brazil did

President Luiz Inácio Lula da Silva signed Provisional Measure (MP) 1,394 on 25 September 2026. It bans the operation, intermediation and advertising of fixed-odds betting and online casino nationwide, revoking the betting provisions of Law 14,790/2023, the law that had created licensing through the Ministry of Finance's Secretariat of Prizes and Betting from January 2025. Licensed sites went offline in early October and all authorizations end on 25 October 2026. Our Brazil page tracks the measure and its deadlines.

Congress and the Supreme Court

A provisional measure takes effect immediately but lapses unless Congress converts it into law. Lawmakers filed 97 amendments from 18 deputies and six senators; five were withdrawn, leaving 92. They range from restoring the regulated market with stricter rules, including reinstating canceled licenses, to keeping sports betting while banning casino-style and virtual games, protecting existing sports sponsorships for up to 24 months and refunding license fees. The joint committee appointed on 30 September had not yet been constituted. The measure starts blocking Congress's agenda on 9 November and expires on 23 November unless extended by 60 days.

In parallel, Justice Luiz Fux is rapporteur of six direct actions of unconstitutionality, brought by operator and lottery associations (ANSEJA, ANJL with IBJR, ANPV), the national commerce confederation and the Prosecutor General's Office. The government's Attorney General's Office (AGU) told the court on 6 October that enforcement should continue. Football clubs have also intervened, some asking for a transition period of up to a year. Fux is expected to decide whether the suspension of betting platforms stays in force after the presidential runoff on 25 October.

Where this leaves licensed operators

Companies that paid for authorizations, hired staff, built local infrastructure and certified their technology now face losses. Bárbara Teles of the betting associations ABC-BET and AMIG noted that a license never guarantees the law will not change, but drew a sharp line between gradual reform and abrupt abolition. She expects disputes over reimbursement and compensation, with outcomes depending on each operator's case. The legal arguments will turn on legal certainty, legitimate expectations and proportionality.

How Latin America reacted

Lawyers and trade groups across the region, speaking to Focus Gaming News, framed Brazil as a warning rather than a model:

  • Mexico: Miguel Ángel Ochoa Sánchez of AIEJA said Brazil may be an isolated case but projects instability, and that prohibition sends players to illegal markets and capital abroad, a lesson for Mexico as it seeks modern legislation.
  • Colombia: Tatiana María Vásquez argued that problems such as player debt or public health call for targeted fixes inside the regulated system, not a blanket ban, linking the point to tax changes that have already squeezed Colombian operators.
  • Peru: Carlos Fonseca of Gaming Law LatAm said banning legal supply moves demand to the black market, costing tax revenue and jobs and leaving players, minors and problem gamblers without protection or complaint channels.
  • Uruguay: Luis Gama of CUOASEC said a ban may reduce exposure in the regulated market, but much of the demand will move to operators without age checks or spending limits. He does not see a wave of regional bans.
  • Chile: Cecilia Valdés of ACCJ said authorities must respect the frameworks they create; unlicensed gambling should be prosecuted, but licensed activity protected.

The common thread is stability: predictable rules, independent regulators, real controls on problem gambling and advertising, and policy that survives election cycles.

What operators should do now

  • Brazil exposure: wind down marketing and player activity in line with the measure, preserve evidence of investments and fees for any claim, and keep the local entity in good standing until Congress and the court decide.
  • Diversify in the region: Peru has licensed online gambling since 2024, Colombia was the region's first regulated online market, and in Mexico operators enter through an agreement with a federal permit holder. Chile is still debating its online framework.
  • Plan for reversal: if Congress converts the measure with a regulated alternative, or the Supreme Court suspends it, former licensees with intact compliance files will be first back in.

Frequently asked questions

Is online betting legal in Brazil now?

No. Provisional Measure 1,394 of 25 September 2026 prohibits fixed-odds betting and online casino, and authorizations granted under Law 14,790/2023 end on 25 October 2026. The ban can still change if Congress amends or rejects the measure, or if the Supreme Court suspends it.

What is a provisional measure?

A provisional measure (medida provisória) has the force of law immediately but must be converted into law by Congress within 60 days, extendable by another 60. If Congress does not approve it in time, it lapses.

Can Brazilian licensees get their authorization fees back?

Not automatically. Some amendments propose proportional refunds of the license fee adjusted by the Selic rate, while others oppose compensation. Lawyers expect disputes and claims that will depend on each operator's situation.

Will other Latin American countries ban betting?

Lawyers in Mexico, Colombia, Peru, Uruguay and Chile describe Brazil as a warning rather than the start of a regional wave. Peru, Colombia and Mexico continue to license online operators, and Chile is still debating its regulation.

Where should operators that targeted Brazil go next?

Peru has licensed online gambling since 2024, Colombia was the region's first regulated online market, and in Mexico operators enter through an agreement with a holder of a federal gaming permit. Operators should also keep their Brazilian corporate structure under review until Congress and the Supreme Court decide.

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Sources

  1. Focus Gaming News: Brazil betting ban raises alarm across LatAm (opens in a new tab)
  2. Yogonet: Brazil Supreme Court justice expected to rule on online betting ban after elections (opens in a new tab)
  3. Yogonet: Brazil lawmakers file 97 amendments to betting ban, seek to restore regulated market (opens in a new tab)
  4. iGaming Brazil: Fux expected to rule on validity of provisional measure after election runoff (opens in a new tab)