Brazil’s Betting Ban Faces Crucial Week as Illegal Market Expands
Brazil.- 14 October 2026 | www.zonadeazar.com Provisional Measure 1,394/2026, which introduced a nationwide ban on fixed-odds betting in Brazil, has entered a decisive week for its legislative and judicial future.
The deadline for lawmakers to submit amendments expires on 13 October, while the Supreme Federal Court (STF) has yet to rule on requests to suspend the legislation.
Meanwhile, official figures highlight the scale of unauthorised gambling activity, with the Brazilian Government referring 13,241 illegal betting websites for blocking in just 12 days.
Deadline for Amendments Expires
Brazil’s National Congress has established 11:59 p.m. on Tuesday, 13 October, as the deadline for deputies and senators to submit amendments to the provisional measure.
The original deadline had been 1 October, six days after the legislation was published in the Federal Official Gazette.
However, congressional authorities extended the period until the first working day following an additional six-day period after the elections.
The extension provided lawmakers with more time to prepare alternatives to the prohibition.
At Least 58 Amendments Submitted
By Friday, 9 October, lawmakers had submitted at least 58 proposed amendments, four of which were subsequently withdrawn.
Politicians who recently submitted proposals include:
- Romário, senator.
- Tabata Amaral (PSB-SP), federal deputy.
- Bibo Nunes (PL-RS), federal deputy.
- Hildo Rocha (MDB-MA), federal deputy.
The final number of amendments will only be confirmed after the submission deadline.
Proposals to Preserve Sports Betting
One of the main objectives of the proposed amendments is to distinguish sports betting from online casino gaming.
At least seven lawmakers have argued that the prohibition should apply exclusively to online casino products, allowing regulated sports betting to continue.
This approach would preserve part of the licensed market while maintaining the supervisory structures established under Brazilian gambling legislation.
Bebeto Proposes Maintaining All Previously Legal Products
Federal deputy Bebeto (PP-RJ) submitted an amendment that would allow all betting products legally available before the provisional measure to continue operating.
However, the proposal includes specific restrictions on gambling advertising.
One provision would prohibit operators from acquiring stadium naming rights, a commercial practice used to increase brand visibility.
The amendment represents an alternative to the Government’s comprehensive betting prohibition.
Congressional Joint Committee
The joint committee responsible for reviewing Provisional Measure 1,394/2026 has already been appointed.
However, congressional leaders have yet to establish the legislative timetable or confirm the committee’s chairperson and rapporteur.
The committee will examine the original legislation and proposed amendments before submitting the measure to the Chamber of Deputies and the Senate.
Key Legislative Dates
Several deadlines will determine the future of the provisional measure.
The principal dates include:
- 13 October: deadline for submitting amendments.
- 25 October: scheduled termination of federal betting authorisations.
- 9 November: the measure begins blocking the congressional agenda if it has not been voted upon.
- 23 November: scheduled parliamentary deliberation deadline.
- 15 December: administrative deadline for operators to complete the closure of their activities.
Legislative discussions are expected to intensify after the second round of Brazil’s presidential election.
Ministry of Finance Sets 15 December Deadline
The Secretariat of Prizes and Betting (SPA), part of Brazil’s Ministry of Finance, published Ordinance SPA/MF No. 3,005.
The regulation establishes 15 December 2026 as the final administrative deadline for fixed-odds betting operators to cease their activities.
It also introduces a phased timetable governing the gradual shutdown of licensed companies.
Two Different Deadlines for Operators
The administrative timetable operates alongside a separate deadline established directly under the provisional measure.
While the legislation schedules the termination of federal betting authorisations for 25 October, the SPA ordinance provides until 15 December for the completion of operational closures.
The coexistence of these dates illustrates the complexity of the transition and the different obligations facing licensed operators.
More Than 13,000 Illegal Websites Identified
One of the most significant developments concerns the scale of unauthorised betting activity.
According to official Government figures, Brazilian authorities referred 13,241 illegal betting websites for blocking over a 12-day period.
This represents an average of approximately 1,103 domains per day.
The figures demonstrate the scale of the clandestine market that authorities are attempting to address through enforcement and website-blocking measures.
Concerns Over the Illegal Market
Licensed gambling associations have warned that prohibiting authorised platforms could encourage bettors to move towards illegal operators.
Companies previously licensed by the Federal Government paid BRL 30 million per authorisation, alongside meeting regulatory and supervisory requirements.
While these companies implement their closure schedules, the substantial number of illegal domains identified presents a challenge for enforcement authorities.
However, website-blocking figures alone do not establish how many players have actually migrated from licensed operators to illegal platforms.
Federal Police Strengthens Enforcement
On 13 October, Brazil’s Federal Official Gazette published Ordinance MJSP No. 1,325/2026.
The regulation establishes a dedicated division within the Federal Police to combat illegal betting and sports match-fixing.
The initiative is intended to strengthen investigative and enforcement capabilities targeting unlawful gambling activities.
The new structure is being introduced as the country implements the closure process for licensed betting operations.
Return of Player Account Balances
Another important element of the transition concerns the return of funds held in betting accounts.
The established timetable requires banks to reimburse balances that customers did not voluntarily withdraw.
The principal deadlines are:
- 5 October: deadline for customers to withdraw their funds voluntarily.
- 9–14 October: scheduled period for bank reimbursements.
- From 14 October: potential involvement of Caixa Econômica Federal where operational obstacles prevent banks from completing refunds.
The process aims to ensure that outstanding customer balances are returned during the shutdown of betting platforms.
Caixa Econômica Federal May Intervene
From Wednesday, 14 October, Caixa Econômica Federal may act as an intermediary in certain refund procedures.
Its involvement is envisaged where operational difficulties prevent banks from completing reimbursements directly.
The measure forms part of the administrative safeguards established to protect customer funds during the transition.
Luiz Fux Has Yet to Rule
At the judicial level, Justice Luiz Fux of the Supreme Federal Court continues reviewing challenges against Provisional Measure 1,394/2026.
As of 13 October, the justice had not issued a ruling on requests to suspend the legislation.
The absence of a decision maintains uncertainty over the continued application of the restrictions.
Industry Associations File Legal Challenges
Several organisations representing the gambling and communications industries have submitted legal challenges to the Supreme Federal Court.
These include:
- Associação Nacional de Jogos e Loterias (ANJL).
- Instituto Brasileiro de Jogo Responsável (IBJR).
- Anseja.
- ANPV.
- Associação Brasileira de Emissoras de Rádio e Televisão (Abert).
The organisations are challenging different legal and economic aspects of the betting prohibition.
AGU Defends the Legislation
The Advocacia-Geral da União (AGU), the federal body responsible for representing the Brazilian Government in legal proceedings, has already submitted its position to the Supreme Federal Court.
The institution maintains that the restrictions introduced by the provisional measure are legally justified.
The Government’s position contrasts with the challenges submitted by industry associations seeking to suspend or modify the measure’s effects.
The Supreme Court’s eventual decision will be important in determining whether the restrictions remain enforceable during the legislative process.
Presidential Election Adds Political Uncertainty
The dispute coincides with the second round of Brazil’s presidential election, scheduled for 25 October 2026.
The election will be contested by Luiz Inácio Lula da Silva and Flávio Bolsonaro.
The date also coincides with the scheduled termination of federal betting authorisations under the provisional measure.
The evolving political situation could influence parliamentary negotiations, although the outcome of those discussions remains uncertain.
Legal Certainty and Market Continuity
The prohibition has also generated debate surrounding the legal certainty of previously granted operating authorisations.
Licensed companies made investments and paid authorisation fees to participate in a market established under Brazilian legislation.
Industry representatives argue that the early termination of their operations undermines regulatory predictability and could lead to further litigation.
The Government, meanwhile, continues defending the restrictions as a matter of public policy.
Next Steps and Impact
Provisional Measure 1,394/2026 has entered a critical stage for the future of online betting in Brazil.
The amendment deadline will determine which legislative alternatives Congress must examine, particularly proposals aimed at preserving regulated sports betting.
Meanwhile, the absence of a ruling from Justice Luiz Fux leaves open the possibility of Supreme Federal Court intervention.
The scale of illegal gambling activity represents another central issue, with more than 13,000 websites referred for blocking in just 12 days.
The coming weeks will be shaped by parliamentary proceedings, judicial decisions, customer reimbursements and the administrative closure timetable for licensed operators.
These developments will determine whether Brazil maintains its comprehensive prohibition, introduces exceptions for specific betting products or once again redefines its national gambling regulatory framework.
Editó: @fonta
