Brazil Bans Fixed-Odds Betting and Online Gambling in 2026 to Address Public Health Crisis

On September 25, 2026, President Luiz Inácio Lula da Silva signed a Provisional Measure (MP) that immediately bans fixed-odds betting activities across Brazil, including sports betting and online casinos, both in physical and virtual environments. The ban requires all betting companies to cease operations and remove advertisements by October 5, 2026. Bettors will be allowed to withdraw their remaining balances from betting platforms by October 14, after which Caixa Econômica Federal will assist any remaining payouts.

The measure targets more than 85 existing fixed-odds authorizations, which have generated R$ 2.55 billion in fees, with no compensation for companies affected by the ban. The government cited escalating public health concerns linked to gambling addiction, including increased anxiety, depression, and higher suicide rates. According to the World Health Organization, problem gamblers face a significantly elevated risk of suicidal behavior. In 2023, over 28 million Brazilians engaged in gambling with approximately 10.9 million exhibiting problematic gambling tendencies, prompting a surge in healthcare demand and anticipated ongoing growth of these issues.

The government has fortified enforcement through the creation of an Institutional Committee for the Supervision and Combat of Illegal Betting. This committee, alongside the Ministries of Finance and Justice, will employ a virtual lab and intensified monitoring to block illegal betting websites, including freezing associated bank accounts. New criminal legislation under consideration proposes penalties ranging from fines to imprisonment, including 4 to 6 years for facilitating bets and 2 to 4 years for advertising.

President Lula notably compared betting addiction to crack cocaine, underscoring the administration's strong stance against the gambling industry due to its societal harms. Finance Minister Dario Durigan criticized previous administrations for failing to regulate the sector adequately. Health Minister Alexandre Padilha highlighted the R$ 38 billion annual cost to public healthcare caused by gambling-related issues. The prohibition has substantial public backing, reflecting concerns over mental health and social consequences tied to gambling in Brazil.

This ban marks a decisive turn in Brazil’s gambling policy, combining immediate operational shutdowns with long-term legislative and enforcement measures to address the adverse effects of fixed-odds betting and online gambling on Brazilian society.