On Friday, President Luiz Inácio Lula da Silva enacted a Provisional Measure that effectively terminates all betting operations in Brazil. This new regulation forbids the operation, promotion, mediation, and advertising of betting and online gaming activities within the country.
Following the publication of this measure, platforms are no longer permitted to accept new bets. A transition period has been established for licensed companies to gradually cease their operations.
The measure specifically bans fixed-odds betting lotteries across Brazil and sets up an Interinstitutional Committee to oversee illegal operations and advertising related to these betting activities. Additionally, it amends existing legislation, specifically Law No. 14,790 from December 29, 2023.
According to the new law, all forms of fixed-odds betting, whether conducted physically or virtually, are prohibited within national borders, including bets placed by foreign agents targeting Brazilian residents.
Key definitions outlined in the measure include:
- Fixed-odds bet: A wager where a specific amount is risked with the expectation of winning a predetermined prize.
- Real sporting event: Any competition or game whose outcome is unknown at the time of betting.
- Online game: A virtual platform that allows betting on games determined by future random events.
- Virtual online gaming event: An online event where the outcome is unknown at the time of the bet.
- Betting operator: A legal entity authorized to conduct fixed-odds betting lotteries as per the existing law.
Furthermore, all concessions and authorizations for fixed-odds betting lotteries will be revoked 30 days after the publication of this measure. This revocation is based on public interest and does not entitle operators to reimbursement or compensation from the government.