Brazil betting ban: 428 illegal sites appear in three days

Monitoring platform Bet Legal identified 428 new illegal betting sites in Brazil between the announcement of Provisional Measure No. 1.394/2026 on September 25 and Sunday, September 27, according to BNL Data. That’s about 143 new sites a day.

The measure, signed by President Luiz Inácio Lula da Silva, bans fixed-odds betting on real sporting events and online casino games, including their operation, advertising and intermediation. Other lottery products authorised by law remain legal.

The rate had already climbed before the signing. Between September 21 and 24, while Lula was publicly threatening a ban, Bet Legal counted 246 new sites, or about 62 a day. The Associação Nacional de Jogos e Loterias (ANJL) had recorded an average of 13.7 new illegal domains a day between June and August.

Four staff for thousands of sites

The Secretariat of Prizes and Betting (SPA), part of the Ministry of Finance, has four employees dedicated to oversight. They monitor nearly 200 authorised websites and thousands of illegal operators.

Of the R$1 million allocated in 2026 for betting and lottery regulation and oversight, R$275,600 has been used.

A federal task force that includes the Ministry of Justice and Public Security, the Ministry of Finance and the SPA took down 506 illegal betting sites after the measure was published, the government reported this week.

LCA Consultores estimates that illegal operators account for 38% to 44% of Brazil’s betting market. In a survey of 2,291 bettors, 77% had used a platform engaged in illegal practices.

Player protection rules no longer apply

The ban removes the safeguards that licensed operators had to run: facial biometrics, restrictions on minors, a ban on credit-card payments, self-exclusion, deposit limits, and daily blocking of people who receive Bolsa Família or the Benefício de Prestação Continuada (BPC), two federal welfare programmes.

None of these requirements apply to unlicensed platforms.

Revenue at risk

The proposed 2027 Budget includes R$5.3 billion (about $1 billion) in expected revenue from the sector. The Federal Revenue Service collected R$9.9 billion (about $1.9 billion) from betting companies between January and August 2026, up 69% in real terms on the same period of 2025.

Operators plan to take the case to the Federal Court of Accounts (TCU), arguing that the measure gives up revenue without any budgetary compensation. Market estimates put federal tax revenue under the existing rules at R$10.8 billion (about $2 billion). A planned Selective Tax could have added up to R$2 billion (about $380 million) a year.

R$2.55 billion in licence fees

Brazil’s 85 authorised operators each paid R$30 million (about $5.75 million) for five-year authorisations, R$2.55 billion (about $490 million) in total. The measure states that termination doesn’t entitle operators to full or partial reimbursement of that fee, and the government has said it won’t refund it.

Around 180 industry executives and lawyers have decided to act jointly and take the ban to the Supreme Federal Court (STF), according to O Globo.

Football and TV contracts

Betting companies invested about R$1.03 billion (about $200 million) in Série A clubs in 2025. Flamengo receives R$268.5 million (about $51.47 million) per season from Betano, and Superbet has notified Fluminense that it may end their R$58 million (about $11 million) annual agreement.

Betano, Novibet, Superbet and Esportes da Sorte have announced they are ending television contracts. Regulated betting companies spent R$23.6 billion (about $4.5 billion) on media between January 2024 and August 2026, and television took 74% of that spending in 2025.

Election timing

Lula introduced the measure nine days before the first round of Brazil’s general election on October 4, which drew criticism over its timing.

Its electoral effect is unclear. An Ideia Institute survey cited by Valor found that 2% of respondents named gambling as the main cause of their debt. New polling from Quaest, Nexus and Datafolha, expected before the first-round vote, will give an early reading of public reaction to the ban.

What happens next

New deposits have been prohibited since September 25. Bettors have until October 5 to withdraw their balances, and sites and apps must go offline on October 6. Operators then report customer balances to banks by CPF (taxpayer number) on October 7 and 8, and banks refund players between October 9 and 14. All authorisations end 30 days after publication.

Under Brazil’s Constitution, a provisional measure takes effect immediately and lapses unless Congress converts it into law within 60 days, a period that can be extended once by another 60. Operators are preparing the TCU and STF challenges in the meantime.

Source: Bet Legal