Brazil's 85 federal fixed-odds betting authorizations, held by 82 companies, expired without refund after a 30-day period ended under Provisional Measure (MP) 1.394/2026. Nearly 190 brands lost authorization. Each license cost R$30 million ($6 million) for five years, plus a R$5 million ($1 million) security deposit.
The regulated market launched in January 2025 under Law 14.790/2023, requiring accredited international testing laboratories, responsible gaming programs, biometric KYC and oversight fees. President Luiz Inácio Lula da Silva's provisional measure took effect on 25 September, banning betting offers and advertising and voiding most of the 2023 law. Operators halted deposits and bets immediately; authorized sites and apps went offline on 6 October.
Operators paid R$2.55 billion ($510 million) for licenses and contributed roughly R$7.5 billion ($1.5 billion) in capital for CPF verification, facial recognition, integration with the Sigap betting management system, and contracts with football clubs, venues and technology suppliers. LCA Consultoria Econômica and Cruz Consulting estimate a multiplier effect up to R$28 billion ($5.6 billion). A National Association of Games and Lotteries (ANJL) survey found more than 3,500 job losses in the first 14 days. LCA assesses a risk of up to R$73 billion ($14.6 billion) in lost revenue between 2027 and 2030.
Congress must rule on MP 1.394 by 25 November, extendable 60 days to early March 2027. As of 23 October, the joint committee had no chair or rapporteur. Most of nearly 100 proposed amendments preserve sports betting while excluding online casino games. The Brazilian Institute of Responsible Gaming (IBJR) and ANJL filed a constitutionality challenge (ADI 8.027) at Brazil's Supreme Federal Court (STF) on 28 September; football clubs and the Brazilian Association of Radio and Television Broadcasters (Abert) also sued. The court has not ruled on an interim measure, and no hearing date has been set. Judge Luiz Fux did not decide on a suspension. IBJR warns that early termination without compensation raises investor risk perception in telecoms, airports, ports and other regulated markets.
