Brazil Kept R$2.55bn in Licence Fees, Then Banned Betting

Brazil took R$2.55 billion in licence fees, then banned the licences. Was it planned?

Brazil kept R$2.55bn in licence fees, then banned betting nine days before an election. Heist or election play? Our take, plus the signs your market is next.

Brazil sold 85 betting licences at R$30 million each, collecting R$2.55 billion. Twenty-one months after the market opened, it banned them all. Nobody gets a real back.

So was it planned? I tested the theory against the numbers: it wasn't a heist. It was an election purchase, paid for by players.

What happened?

President Lula signed Provisional Measure 1.394 on 25 September, nine days before the presidential first round. It bans online casino games and fixed-odds sports betting, effective immediately.

Licensed sites went dark on 6 October. Every licence expired on 25 October, runoff day, when Lula won a fourth term with 51.8%.

Official Congress page for Provisional Measure 1.394, published 25 September 2026 — Provisional Measure 1.394, as published. **Source**: Congresso Nacional

Congress must vote by 23 November, extendable by 60 days, with 99 amendments filed. Justice Luiz Fux heard the industry's challenge on 3 November; the full Supreme Court will rule.

Was the ban planned to keep the money?

Was Brazil's betting ban a cash grab? The timing makes a strong case for it. The money tells a different story. Here's how the two sides stack up.

The case for a cash grab	The case against
The licensed market only opened in January 2025.	Licence fees collected were R$2.55bn (85 × R$30m).
The measure rules out any refund or compensation.	Tax collected, January–July 2026: R$8.75bn.
No transition, as all sites had 11 days to shut down.	Tax lost each month is about R$1.25bn.
A sudden U-turn, since a week earlier, the likely plan banned casino games but kept sports betting.	The fees cover about two months of lost tax.

The ban polled 52% to 31% and arrived by decree in a race Lula went on to trail in the first round. That's policy set by a poll, paid for with players' protections.

But I can't say it was a heist – it makes zero sense to cut down a cash cow in the middle of elections.

Brazil banned the safe version of gambling, not gambling

Over 25 million Brazilians bet on licensed sites in 2025. The ban didn't remove their appetite. It removed the guardrails that came with the licence:

self-exclusion across every licensed operator
deposit and debt restrictions
blocks on betting with welfare money
age checks tied to CPF identity numbers

Within two days, unauthorised domains aimed at Brazil jumped from 295 to 710, before any licensed site closed. H2 Gambling Capital expects around 60% of licensed spend, about R$25 billion, to go unlicensed. India's 2025 ban went the same way: a small Delhi survey found offshore use up from 68% to 82%.

Shutdown notice on the Betano betting site in October 2026 — What players saw on 6 October when they opened Betano's homepage in Brazil. Source: Betano

A ban sold as player protection has taken away the only protection players had.

Did Brazil (cough cough Lula) have a point?

The harm was real, as gambling-related care in Brazil's public health system rose about 140% between 2018 and 2025.

Lula called betting a cancer: "either we remove the tumour or this tumour will kill us".

But weak rules need stricter rules, like tighter deposit limits and affordability checks, not no rules. A regulator can force a licensed operator to refund you. It can't touch a site that never asked permission.

Country	Licensed online since	Latest move	Ban risk
Brazil	2025	Banned it all by decree, September 2026	Happened
Sweden	2019	Credit gambling banned, April 2026	Low, but auditors called supervision weak
Denmark	2012	Bill to ban ads around live sport, from 2027	Low
Spain	2012	Ad limits by decree in 2020, partly struck down in 2024	Low, though it has restricted ads by decree
Portugal	2015	National self-exclusion portal, April 2026	Low
UK	2007	Online casino tax up to 40%, April 2026	Low
Canada	2022 (Ontario)	Alberta opened a licensed market, July 2026	Low

Can you do something about it?

You can't predict whether a new government will decide to ban gambling outright. Nobody thought Brazil would do it, but it happened. That doesn't mean you can't do something about it:

Keep your balance lean. Brazilians who missed the 5 October deadline waited for banks to return their money.
Know who licenses your casino, and how to complain to that regulator.
Set limits through your licensed casino or national self-exclusion scheme. None of it follows you to an unlicensed site.

But you don't have to forget the root cause of Lula's ban.

If gambling is starting to feel like a problem, self-exclusion and deposit limits are there to help, and free, confidential support is available wherever you play.

What happens next?

Congress and the Supreme Court decide next. My prediction: sports betting returns in some form in 2027, but online casinos don't.

Other governments tax instead: the UK raised remote gaming duty from 21% to 40% in April 2026. Banning outright is cheap populism. The treasury loses the tax; players and their families lose the protections.

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By Nick

Casino Expert Since 2014

Expertise: Strategy & Planning, Editorial Oversight, Quality Control, Content Audits

Hi, I’m Nick! I love checking facts and measuring the impact of news in the whole iGaming industry. Things change fast, which is why I’m always onto something, whether it’s a casino, a guide, or a new piece that can make or break a whole market.

Learn about our Review Process

Anything incorrect or missing?

Last updated: November 6, 2026

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Brazil took R$2.55 billion in licence fees, then banned the licences. Was it planned?

What happened?

Was the ban planned to keep the money?

Brazil banned the safe version of gambling, not gambling