Licensed online betting and gaming operators have less than two weeks to shut down operations in Brazil
Brazil’s short-lived experiment with regulated online gambling will end on 6 October when all online gaming sites and apps in the country will be shut down.
The end of Brazil’s regulated online gaming market was confirmed by President Luiz Inácio Lula da Silva on Friday (Sep. 25) and comes ten days before the country goes to the polls to choose its next president.
In a statement on the president’s decision, the Brazilian government cited the World Health Organization, stating that suicide mortality is 15 times higher among people with a gambling disorder.
The government also said that the risk of developing addiction is three times higher among economically vulnerable people and 150 per cent higher among online players.
“The termination of authorizations stems from a reason of public interest and does not generate the right to compensation for lost profits, for investments made or for expectation of continuity of the activity, nor to the total or partial return of the amount paid for licences,” the statement added.
Brazil has issued 85 licences to online gambling operators at a cost of R$30 million per licence, bringing in R$2.55 billion (approx. US$491.5 million) for the government.
Numerous operators are expected to launch lawsuits against the government of Brazil, given the draconian and abrupt nature of the shut down. They will likely argue that the public interest is better served through stronger regulation, not prohibition.
New deposits to online platforms were suspended on Friday and players have until midnight on 5 October to withdraw funds from their accounts.
All online gambling websites and apps in Brazil will be shut down on 6 October, with operators then having two days in which to report all remaining player balances to financial institutions. The banks will then be expected to return all funds to players by 14 October.
Brazil’s Ministry of Finance and Ministry of Justice will also act to block illegal websites.
This will be followed later in the year by a bill to specifically outlaw online gambling, with penalties of up to six years imprisonment for illegal operators and up to four years imprisonment for advertisers and recruiters. Use of personal data to target online gamblers will be punishable by up to four years in prison, as will facilitating online gambling transactions.
Brazil’s regulated online gambling market went live in January 2025.