The Provisional Measure (MP) 1394/26 abolishes fixed-odds betting (bets) in the country. The proposal prohibits the exploitation, offering, intermediation, and advertising of bets, including those offered by companies based abroad to people in Brazil.
The text includes both virtual platforms and any physical modalities of sports betting and online games. The regulation revokes previous legislation that had regulated the sector in the country.
Among the main points of the provisional measure are:
- End of operations: the MP halts the authorization for the operation of betting companies in Brazil.
- Advertising ban: advertising, marketing campaigns, sponsorships, and any type of commercial promotion of betting sites are prohibited.
- Removal of platforms: betting apps and websites must go offline and cease to be available in the virtual stores of operating systems.
- Withdrawal of balances: the rules establish deadlines and procedures for bettors to withdraw the financial resources they still have deposited on the platforms.
Timeline
The provisional measure also establishes a timeline for the closure of platforms and the return of funds remaining in bettors' accounts:
- September 25: publication of the MP and the start of the prohibition of new deposits.
- October 5, at 11:59 PM: deadline for voluntary withdrawal of funds ends.
- October 6: betting sites and apps must go offline.
- October 7 and 8: companies must inform banks of the remaining balances, itemized by CPF.
- October 9 to 14: financial institutions must return the funds to bettors.
- From October 14: in case of impediment to the return, Caixa Econômica Federal will receive the funds and make payments to bettors.
Sanctions
With the publication of the MP, the government established direct penalties for individuals and legal entities that violate the determinations.
The penalties include warnings and fines that can reach R$ 2 billion, in addition to the suspension of activities.
Supervision
The text provides for the creation of the Interinstitutional Supervision Committee, coordinated by the Civil House, uniting the Ministry of Finance, Ministry of Justice, Federal Police, Federal Revenue, and Central Bank to combat illegal activity.
The control actions include:
- blocking internet domains;
- removing apps from virtual stores;
- restricting and blocking payment methods and accounts used illegally; and
- tracking the financial resources moved by the platforms.
Next steps
Like any provisional measure, the regulation is already in effect from the publication date but needs to be approved by the Chamber and the Senate within 120 days to become law.
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