Lula government signs provisional measure to end betting operations in Brazil

Under the argument of a public health problem, President Luiz Inácio Lula da Silva signed this Friday (25) a provisional measure (MP) that determines the end of the exploration, offer, intermediation and advertising of so-called bets in Brazil. The decision affects both sports betting and online games, in physical and virtual environments, and also the authorizations granted by states and the Federal District.

The measure does not affect other types of lottery authorized by law.

What changes?

With the publication of the MP, companies that operated legally in the country are no longer able to offer bets or advertise the activity.

The measure also establishes a timetable for the closure of platforms and the return of amounts that remain in bettors' accounts.

• September 25: publication of the MP and beginning of the ban on new contributions;

• October 5th, at 11:59 pm: the deadline for voluntary withdrawal of amounts ends;

• October 6: betting sites and applications must go offline;

• October 7th and 8th: companies must inform banks of their remaining balances, broken down by CPF;

• October 9th to 14th: financial institutions must return the amounts to bettors;

• From October 14th: if the return is prevented, Caixa Econômica Federal will receive the funds and make payments to the bettors.

What about advertising?

Companies will also have to remove advertisements and sponsorship materials.

The deadline for voluntary withdrawal ends on October 5th and includes advertising published in physical media and in advertising pieces abroad.

After the publication of the MP, no new actions to publicize bets can be carried out.

Will there be compensation?

According to the government, the termination of authorizations occurs for reasons of public interest.

Therefore, the MP establishes that companies will not be entitled to compensation for:

• loss of profits;

• investments made;

• expectation of continuity of activity;

• refund, in whole or in part, of amounts paid for grants.

To date, 85 grants have been granted to explore fixed-odd betting. Each one cost R$30 million, totaling R$2.55 billion paid by companies in the concession process.

And who fails to comply?

The MP provides for administrative sanctions for individuals and legal entities that violate the new rules.

Punishments may include:

• warning;

• fines of up to R$2 billion;

• partial suspension of activities;

• total suspension of activities, in the case of companies.

Project foresees prison

In addition to the provisional measure, the government will send a bill to Congress to create specific crimes related to fixed-odd betting.

The proposal establishes five behaviors that could be considered crimes and will need to be analyzed and approved by Congress to come into force.

Among the planned behaviors are:

• Exploring fixed-odd betting: penalty of 4 to 6 years in prison;

• Publicizing bets or attracting bettors: 2 to 4 years and fine;

• Using personal data to capture bettors: 2 to 4 years and a fine, with the possibility of increasing the penalty in specific situations;

• Financially facilitate exploration: 2 to 4 years and fine;

• Provide internet application for betting: 2 to 4 years and fine, with aggravating circumstances in certain situations.

The project also foresees worsening when health data, betting history or information from children and adolescents is used, in addition to situations in which age or location verification mechanisms are circumvented.

What will supervision be like?

The government states that it intends to intensify the fight against the illegal market after the closure of authorized platforms.

The Ministries of Finance and Justice must act to block irregular websites. Among the measures planned are:

• domain blocking;

• removal of applications;

• restriction of payment methods;

• blocking accounts used illegally;

• tracking of resources moved across platforms.

The Prizes and Betting Secretariat (SPA) of the Ministry of Finance currently uses mechanisms to monitor the illegal market.

The MP also creates an Institutional Committee to Inspect and Combat Illegal Betting Exploitation, coordinated by the Civil House.

Why did the government decide?

The government presents public health and the financial impacts of betting as some of the main justifications for the measure.

According to data released by the Executive, gaming-related disorder can be associated with problems such as anxiety, depression, changes in sleep and mood, family conflicts and financial losses.

The government also cites the growth in demand for the Unified Health System (SUS) related to problems with gambling.

Between 2018 and 2025, assistance related to pathological gambling and gambling problems grew by around 140%, according to data presented by the government. By 2028, if nothing was done, demand would grow another 104%.

The government cited a study by the Institute of Health Policy Studies that estimates the social cost associated with gaming at R$38.8 billion annually. Of this total, R$30.6 billion (almost 79%) is linked to health, including suicides, loss of quality of life associated with depression and medical treatments.

And the gamblers?

The main guideline at this time is to observe the calendar established by the MP.

Anyone who has funds on the platforms will have until October 5th, at 11:59 pm, to voluntarily request withdrawal.

After this period, the process of identifying and returning remaining balances by financial institutions begins.

The government also maintains a self-exclusion platform to restrict access to authorized betting shops, a tool created before the decision to close the market.

What happens now?

The MP takes effect immediately upon publication, but the legislative process continues in the National Congress. Parliament has up to 120 days to vote on the text.

At the same time, the project that creates the five crimes related to betting will still depend on analysis by deputies and senators.