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Brazil's Betting Ban: What It Means for LATAM Operators

Brazil's betting ban: what operators need to know

On September 25, Brazil reversed two years of regulation in a single day. Provisional Measure 1.394 bans “the exploration, offer, intermediation and advertising” of fixed-odds betting across the country. That covers sports betting and online casino, and includes offshore operators serving Brazilian players. Other lottery products are exempt.

Brazil had one of the largest regulated betting markets in the world. Here is what the measure does, what other markets have learned from similar shifts, and what it means for operators across the region.

Yoav ziv 
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What MP 1.394 does

Date What happens
September 25 MP 1.394 published and in force. New deposits stop.
October 5 Last day for players to withdraw balances. Betting ads must come down.
October 6 Licensed sites and apps go offline. App stores and networks must block access.
October 25 All betting licenses expire. Presidential runoff, if needed.
~120 days Congress must vote the measure into law, or it lapses.

The impact is wide:

  • Licensed operators. Around 90 companies lose licenses they paid R$30 million each for, with no refund.
  • Football clubs. Clubs face an estimated $200 million hit, and several have joined the Supreme Court challenge.
  • The federal government. It collected nearly R$10 billion in betting taxes in 2025, and that revenue now goes to zero.

What other markets have learned

Regulators around the world track one measure above all: channelization, the share of play that stays inside the licensed system. Brazil’s trade bodies estimate that 41% to 51% of betting already ran outside it before MP 1.394. Their Supreme Court challenge argues the ban will push that share higher.

Other markets show how channelization responds to policy.

India: a full ban. India banned real-money gaming in August 2025 under the Promotion and Regulation of Online Gaming Act. A CUTS International survey of former players found offshore platform use rose from 68% to 82% after the ban, despite authorities blocking more than 7,800 sites.

The Netherlands: tighter rules. The Dutch market opened in 2021, then added an ad ban and deposit limits. The regulator, the Kansspelautoriteit, reported in October 2025 that licensed operators’ share of player spend fell to 49%.

Germany: a strict regime. Germany’s regulator, the GGL, puts the unlicensed share at 23%. Industry groups argue the real figure is higher.

Ontario: a competitive licensed market. Before Ontario opened its regulated market in 2022, the government estimated about 70% of play was unregulated. By 2026, only 8.9% of players used unregulated sites alone.

The United States: state-by-state legalization. As states legalized sports betting, the illegal share fell from 36% to 24% between 2022 and 2025, according to the American Gaming Association.

The lesson regulators keep relearning: a well-designed licensed market protects players, funds the state and keeps play in the regulated channel. Brazil built one of the largest in the world. How it rebuilds will shape the region for years.

The rest of LATAM

Licensed operators affected by the ban still have trading teams, technology and LATAM brands. Many will look to the region’s other regulated markets:

  • Peru opened a licensed online market in 2024 under MINCETUR. Around 50 operators now hold licenses.
  • Colombia has licensed online betting through Coljuegos since 2017.
  • Mexico and Argentina license operators at the federal and provincial level.
  • Chile’s Senate approved an online betting bill in September.

What to watch

Three paths will decide how long Brazil’s market stays closed:

The election. The first round went to a runoff. Flávio Bolsonaro took 47.04% to Lula’s 45.15%, and the two face off on October 25, the same day all betting licenses expire. Lula has vowed to end betting “no matter who gets hurt.” Bolsonaro has called the ban populist but hasn’t committed to restoring sports betting. Either way, Datafolha polling shows 78% of voters support the ban, so neither candidate has an easy path to reversing it.

The Supreme Court. The challenges sit with Justice Luiz Fux. Analysts see full suspension as unlikely in the short term.

Congress. Lawmakers have about 120 days to vote. A separate bill would add prison terms for operating betting.

Independent analysis puts the odds of a permanent, total ban at around 5%. A closure lasting months is far more likely. Even in the best case, licensed operators will have to rebuild from the ground up.

Five questions operators are asking

Brazil showed how quickly a regulated market can change. Whichever path it takes next, operators across LATAM are reviewing their setup against five questions.

Can my supplier keep up when the market shifts?

When rules change, speed decides who adapts and who waits. LSports launches coverage and support in new markets fast, so operators can move when their plans do.

Am I locked into one platform?

Turnkey platforms bundle data, trading and pricing into one package. That works until operators need to change one part of it. LSports data and managed trading plug into an existing setup, with no need to replace the stack.

Do my trading costs flex with revenue?

Fixed trading costs don’t fall when revenue does. LTS, LSports Trading Services, focuses on LATAM and works on revenue share only. Operators can trade new markets without building a desk first.

Am I covering the leagues my players follow?

LATAM players follow local football closely, well below the top flight. LSports covers more than 60 football competitions across Argentina, Mexico, Colombia, Chile, Peru and Ecuador, from Liga Profesional and Liga MX down to Argentina’s Primera C, Chile’s Tercera División and Peru’s Liga 3.

Is my business built on betting alone?

When betting goes dark, the audience doesn’t disappear. LSports data feeds, odds and fan engagement tools power fantasy games, score portals and interactive media, so operators can keep their audience engaged while the market finds its footing.

Operators that answer these now won’t be starting from zero when the next change comes. They’re the questions the LSports LATAM team works through with operators every day.

LSports will keep tracking MP 1.394, the court cases and the election as they develop.

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