Brazil Bill Proposes Up to Six Years in Prison for Betting Operations
Brazil.- 1 October 2026 | www.zonadeazar.com Brazil’s Government has introduced legislation proposing prison sentences of up to six years for anyone operating fixed-odds betting following the nationwide prohibition of the sector.
Bill 5,477/2026 is intended to complement Provisional Measure 1,394/2026 by creating specific criminal offences covering betting operations, advertising, player acquisition, payments, personal data and technology used to facilitate wagering.
Up to Six Years for Operating Bets
The bill proposes four to six years in prison plus a fine for operating fixed-odds betting.
The same penalty would apply to anyone who:
- Offers bets.
- Receives or records wagers.
- Processes or intermediates betting activity.
- Maintains physical betting premises.
- Operates websites or applications.
- Provides other channels used to place bets.
Advertising and Promotion
The legislation also proposes two to four years in prison plus a fine for gambling marketing.
This covers advertising, commercial promotion and other activities intended to encourage fixed-odds betting.
Individuals involved in recruiting, referring or recommending bettors could also fall within the provision.
Influencers and Monetisation
The bill extends potential liability to those sponsoring, promoting or monetising betting advertising.
This could include intermediaries, affiliates, influencers and other participants in the marketing ecosystem where they knowingly support prohibited activity.
Use of Personal Data
Providing, transmitting, selling, segmenting or enriching databases for the purpose of acquiring bettors would also become a criminal offence.
The proposed penalty is two to four years in prison.
Sentences could be increased by 50% where the data includes betting history, accumulated losses, information related to gambling disorder or data belonging to children and adolescents.
Payments and Financial Processing
Authorising, processing, settling, holding or intermediating betting-related payments could also lead to two to four years in prison.
Penalties may increase where third parties are used to disguise transactions, the nature or source of funds is concealed, or money is transferred overseas.
The bettor is excluded from this offence in relation to simply paying for a wager or receiving winnings.
Technology Providers
The bill also covers companies and individuals supplying technology used to facilitate betting.
Providing, licensing, hosting, distributing or maintaining applications, platforms or systems intended for gambling could carry two to four years in prison where there is knowledge of their purpose.
Enhanced penalties would apply where systems conceal their function, bypass age or location controls or target minors.
Online Gaming as an Aggravating Factor
The legislation provides for increased penalties where the betting activity involves virtual online gaming events.
This includes formats such as slots and other digital games previously offered within Brazil’s regulated market.
Journalism Excluded
The bill expressly states that journalistic, informational, educational, academic, scientific or critical content about betting does not constitute a criminal offence.
The exemption is intended to distinguish commercial promotion from legitimate reporting and public debate.
Different From the Provisional Measure
The bill and the Provisional Measure perform different legal functions.
Provisional Measure 1,394/2026 has already prohibited betting operations, intermediation and advertising and has immediate legal effect.
Bill 5,477/2026, by contrast, seeks to establish criminal offences and prison sentences.
Brazil’s Constitution prevents Provisional Measures from being used to create criminal law provisions.
Legislative Process
The proposed criminal penalties are not yet in force.
The bill must first pass through the Chamber of Deputies and subsequently the Senate.
If approved by Congress, it will still require presidential sanction or veto.
The Government has requested urgency for its consideration.
Industry Context
The proposal forms part of a wider enforcement strategy following the 25 September betting prohibition.
Authorities are simultaneously increasing website blocking and action against social media profiles and digital channels used to advertise unauthorised gambling.
Next Steps or Impact
Attention will now focus on the progress of Bill 5,477/2026 through Congress.
If enacted, Brazil would move from an administrative betting prohibition to a framework that also imposes direct criminal liability on operators, advertisers, financial intermediaries and technology providers.
Until then, the proposed prison sentences are not yet in force and enforcement continues under the administrative measures established by Provisional Measure 1,394/2026.
Editó: @fonta
