Brazil’s licensed online sports betting and casino market went dark on October 6th after the government’s shutdown deadline passed without intervention from the Supreme Federal Court.
Major operators including Betano, Sportingbet, Betnacional, Esportes da Sorte and Superbet withdrew their platforms, with customers redirected towards the government’s Brasil sem Bets portal. Remaining player balances are scheduled to be returned through financial institutions between October 9th and 14th.
The closure follows President Luiz Inácio Lula da Silva’s September 25th introduction of Medida Provisória 1.394, prohibiting fixed-odds sports betting and online gaming across Brazil.
Justice Luiz Fux has yet to rule on industry applications seeking emergency suspension of the measure. The Brazilian Institute of Responsible Gaming and National Association of Games and Lotteries argue that companies invested under five-year federal authorisations issued by the same state now attempting to terminate them.
Brazil’s Attorney-General has asked the Supreme Court to maintain the prohibition and has separately challenged provisions of the 2018 and 2023 laws that created the regulated market.
Operators paid R$30m (US$5.6m) for each five-year authorisation, generating R$2.55bn (US$476m) for the state across 85 approvals. MP 1.394 provides no automatic reimbursement of those fees or compensation for investment losses.
Congress must still consider the provisional measure, which now faces 47 proposed amendments.
The shutdown also lands between the two rounds of Brazil’s presidential election. Flávio Bolsonaro finished ahead of Lula on October 4th, with the candidates due to meet again on October 25th.
Brazil has closed the regulated market. The legal, political and commercial battle over what replaces it has only just begun.
Tags: Brazil, iGaming, Sports Betting, President Luiz Inácio Lula da Silva, Online Gambling
