Brazil Revokes 85 Betting Licenses Amid Regulatory Uncertainty

Brazil has revoked 85 sports betting licenses as of October 25, impacting almost 190 brands and leading to significant financial losses for operators. The move follows President Lula’s announcement of Provisional Measure 1,394, prohibiting online betting.

What Happened

Effective October 25, the 85 licenses granted to sports betting operators in Brazil were revoked, impacting nearly 190 brands that had been active in the regulated market (iGaming Business). Operators had paid a grant of BRL30 million ($6 million) and made a security deposit of BRL5 million, amounts which will not be returned following the implementation of Provisional Measure 1,394 (Gaming Compliance News).

The provisional measure, announced by President Lula on September 25, prohibited online betting to “protect families from indebtedness” (iGaming Business). This measure came into effect immediately upon issuance, preventing operators from accepting new deposits and bets and requiring them to return client deposits within days (iGaming Business). This action occurred a year and nine months after the launch of the regulated market, which had established strict rules including accredited international laboratories, problem gambling programs, and Know Your Customer (KYC) rules with biometric identification (iGaming Business).

Key Details

• Almost 190 brands lost their authorization to operate under Provisional Measure 1,394, without the return of grant fees (iGaming Business).
• Operators reportedly paid approximately BRL2.6 billion in grants and BRL7.5 billion in capital contributions (iGaming Business).
• Carlos Lima, president of the Brazilian Institute for Responsible Gaming (IBJR), stated that the revocation occurred without a maturation period or return on investment for operations structured over 60 months (iGaming Business).
• The main trade bodies, IBJR and the National Association of Games and Lotteries (ANJL), along with other groups, have filed lawsuits with the Supreme Federal Court (STF), which has not yet ruled on the measure’s constitutionality (iGaming Business).

Why It Matters

The revocation has created significant legal and financial uncertainty for the regulated betting sector in Brazil. Carlos Lima of IBJR highlighted that the lack of legal certainty undermines predictability for long-term investments (iGaming Business). The industry’s investment, reportedly causing a multiplier effect of BRL28 billion in the economy, is now compromised (iGaming Business).

Concerns have been raised regarding a potential surge in the illegal market. Lima pointed out that bettors will likely migrate to unregulated sites, with the black market already estimated between 38% and 44% of the total market, according to an LCA Consultores study (iGaming Business). These illicit operations reportedly do not collect taxes, lack identity verification, do not offer self-exclusion tools, and operate beyond the oversight of financial and federal police bodies (iGaming Business).

What’s Next

Beyond the pending Supreme Federal Court decision, the provisional measure is awaiting processing in the National Congress. Parliament has until November 25 to analyze the measure (iGaming Business). While a Joint Committee for Provisional Measure 1,394 has appointed members, a president or rapporteur has yet to be named (iGaming Business).

Nearly 100 amendments have been presented, with most advocating for the continuation of sports betting, potentially without online casino activities (iGaming Business). Congress has the option to extend the voting period by 60 days, pushing the review deadline to March 2027. This legislative process will block the National Congress’s agenda from November 9 onwards (iGaming Business). The fate of the expired licenses remains uncertain, with questions regarding the need for new fees if Congress rejects the provisional measure (iGaming Business).

Originally reported by iGaming Business·Published 24 Oct 2026, 19:46