Brazil revokes 85 sports betting licences following provisional measure

Licences revoked under provisional measure

The 85 licences granted to sports betting operators in Brazil have been revoked as of 25 October. Almost 190 brands that had been operating in the licensed market have lost their authorisation to operate with MP 1.394.

The operators will not receive a return of the amounts paid for the grants. The companies paid a grant of BRL30 million ($6 million), in addition to making a security deposit of BRL5 million. In total, almost BRL2.6 billion was paid in grants and approximately BRL7.5 billion in capital contributions by the operators.

Provisional Measure 1,394 was announced by Lula a month ago and prohibited online betting to “protect families from indebtedness.” The provisional measure came into effect on the night of 25 September. Operators were immediately prevented from accepting deposits and bets and had only a few days to return the amounts deposited by their clients.

Legal challenges and parliamentary review

The Brazilian Institute for Responsible Gaming (IBJR) and the National Association of Games and Lotteries (ANJL) filed lawsuits with the Supreme Federal Court (STF). The Brazilian Association of Radio and Television Broadcasters (Abert) and football clubs also filed lawsuits with the Supreme Federal Court. The Supreme Federal Court has not ruled on the constitutionality of the provisional measure to date.

Parliament has until 25 November to analyse the provisional measure. Nearly 100 amendments were presented to the provisional measure, most of them maintaining the activity but without online casino, leaving only sports betting. Congress can extend the voting period for the provisional measure by 60 days, pushing the review deadline to March 2027.

The black market is currently estimated at between 38% and 44% of the total market, according to a study by LCA Consultores. There are already more than 30,000 illegal sites operating in Brazil.