Brazil Bans Online Betting: What Happens on October 6
Lula has signed a decree banning online betting and casinos in Brazil. Players can withdraw until October 5, and sites go dark on the 6th. What comes next.
What happened
On September 25, Brazilian President Luiz Inácio Lula da Silva signed Provisional Measure 1.394/2026. It bans fixed-odds betting (regular sports betting) and online casino games, including operating, offering, brokering and advertising them. State lotteries already authorized by law are not affected.
The timing stings. Brazil's regulated market only opened in January 2025, when nearly 90 companies paid BRL 30 million each for a license. Less than two years later, the government is shutting it down.
The official reason is public health. According to government data, 28 million Brazilians placed bets in 2023, and 10.9 million showed risky gambling patterns. Visits to the public health system SUS related to gambling rose 140% between 2018 and 2025. Finance Minister Dario Durigan called betting "a serious problem" of public health. For scale, Brazilian households spend roughly BRL 60 billion (about $11.6 billion) a year on bets.
The timeline
- September 25: the measure takes effect and new deposits are banned.
- Until October 5, 11:59 p.m.: players withdraw their balances. Operators must also pull ads and sponsorship branding by this date.
- October 6: sites and apps go offline, with app stores and internet providers blocking access.
- October 7–8: operators report remaining balances to banks.
- October 9–14: banks refund the money to players.
- From October 14: state bank Caixa Econômica Federal handles any remaining refunds.
Violations carry fines of up to BRL 2 billion and suspension of operations. The government also plans an urgent bill with prison terms: 4 to 6 years for running betting operations, 2 to 4 years for payment companies that process them.
The election angle
The decree landed nine days before the first round of Brazil's presidential election on October 4. Lula is running for re-election in a tight race with Senator Flávio Bolsonaro, who called the ban "populist, hypocritical and politically motivated." According to NBC News, about three in four Brazilians support a full ban. On the same day, Lula announced a debt relief program for households.
Football takes the hit
Betting brands are all over Brazilian football. In Série A, the country's top league, 14 of 20 clubs have a betting company as their main shirt sponsor, worth at least BRL 910 million in 2026. Flamengo, the most popular club in Brazil, estimates its own loss at BRL 400 million. Flamengo, Corinthians, Palmeiras and São Paulo warned that the ban opens the door to illegal sites and could push clubs toward insolvency. Flamengo put it bluntly: what disappears is the only part of the market Brazil can regulate, supervise and tax.
One small mercy for fans: old jerseys with betting logos are still fine to wear. The ban targets advertising, not your wardrobe.
What happens next
The measure is in force now, but Congress has to approve it within 120 days (60 plus a 60-day extension). If lawmakers don't vote, it expires. Congressional leaders have already signaled they will deal with it after the election.
Meanwhile, the industry has gone to court. On September 28, the National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR) asked the Supreme Federal Court (STF) to suspend the decree. Justice Luiz Fux is handling the case. Their arguments: no real urgency, no technical studies, and licensed operators losing what they invested. No ruling yet.
Three scenarios:
- The STF suspends the decree until Congress decides.
- Congress approves it, and Brazil abandons regulated betting for good.
- Lawmakers let it lapse, and the market comes back.
For now, the realistic forecast is uncertainty until at least the end of the year.
What it means for players
Anyone with money on a Brazilian sportsbook should withdraw it before 11:59 p.m. on October 5. Leftover balances will come back through banks, but that route is slower.
The bigger story goes beyond Brazil: one of the world's largest betting markets is being switched off almost overnight. Clubs and operators expect demand to move offshore, and the government is answering with blocks and criminal penalties. If you want to understand how crypto platforms like Coins.Game work, start with our guides on how to choose a cryptocurrency for casino gaming and crypto casinos with the highest withdrawal limits.
We're following the STF case and the vote in Congress. Play responsibly, and only where the law in your country allows it.
What's Your Reaction?
