Brazil bans online betting: what it means for payments

Less than two years after Brazil opened a licensed market for fixed-odds betting, the government has shut it down. Provisional Measure (MP) 1.394/2026, published on 25 September 2026, bans the operation, offering and advertising of fixed-odds betting nationwide, including sports betting and online casino games, and ends existing federal and state authorisations.

For the payments industry it is one of the most direct interventions ever made: banks and payment institutions are now required to block betting payments, including over Pix.

The timeline

According to the Senate’s summary of the measure:

• 25 September 2026: MP published; new deposits banned immediately.
• 5 October, 23:59: deadline for players to withdraw their balances voluntarily.
• 6 October: betting sites and apps must go offline, including in app stores.
• 7 to 8 October: operators tell banks the refund amounts owed, by player CPF, and secure the funds.
• 14 October: deadline for banks to complete refunds. Money that cannot be returned goes to an account at Caixa Econômica Federal.
• 25 October: remaining concessions and authorisations are extinguished.

Open bets without a result within ten days of publication are voided and stakes refunded. Operators that fail to make refunds face a daily fine of R$200,000.

The MP took effect immediately, but Congress must approve it within 120 days for it to become permanent law, so the debate is not over.

Payments: Pix, TED and boleto blocked

The MP forbids banks and payment institutions from processing or enabling betting transactions, including over instant payment systems. The only exceptions are wind-down operations and refunds to players.

The Central Bank followed on 30 September 2026 with three resolutions:

• Resolution BCB 597 adds the ban to the Pix rules: participants must prevent the processing, settlement and facilitation of transactions to fixed-odds betting.
• Resolution BCB 596 applies the same duty to the boleto scheme.
• Resolution BCB 595 extends it to TED bank transfers.

The Central Bank is also required to build a system for rejecting betting transactions and returning funds between banks.

Part of a wider trend

Brazil had already been tightening payments for betting before the ban. In May 2026, the Novo Desenrola debt programme barred credit operations linked to betting deposits, which lawyers read as a ban on “Pix credit” (buy-now-pay-later style Pix) for bets. Some banks had started blocking those transfers to operators.

The lesson goes beyond Brazil: regulators increasingly use the payment system itself, rather than only licences, to control gambling. Credit bans, deposit limits and payment blocking are all enforced through banks and providers.

What operators and PSPs should do now

1. Stop all Brazilian betting flows except documented refunds and wind-down payments.
2. Keep complete records. The MP requires operators to keep user, bet and payment records for at least five years.
3. Watch Congress. The MP could be changed or lapse within 120 days.
4. Review exposure in other markets. Build payment setups that can switch methods, block flows or apply limits per market quickly.

Operating in several markets and want to stress-test your payment setup against regulatory change? Talk to our team.

This article summarises public sources for general information and is not legal advice.