Brazilian Betting Platforms Go Offline With R$1.33 Billion Still Held in Bettors’ Accounts

The official fixed-odds betting platforms in Brazil were temporarily shut down from 6 pm on October 6 due to the expiration of the voluntary withdrawal period established by Provisional Measure No. 1,394/2026. Bettors were given until 11:59 p.m. on Oct. 5 to cancel out their balances before the platforms were mandatorily shut down.

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At the end of the year, the Ministry of Finance’s pre-shutdown balance showed that there was around R$1.33 billion in the accounts associated with 26.5 million CPFs. Funds will not be lost; financial institutions involved in the payment of the betting companies will be responsible for distributing the monies back, with this set to take place from October 9 to 14.

Bettors Withdraw R$775.6 Million

The rest of the balance is much less, as the balance that was left with the users at the time that the measure came into force was around R$2.1 billion. In total, about R$652.6 mil was pulled from the system by October 2, and R$1.33 billion was withdrawn by October 5.

Small amounts of money were mostly kept in most accounts. More than 96% of the positive-balance accounts had R$25 or less, and more than 92% had less than R$10. In the opposite extreme, approximately 80% of the remaining funds were concentrated in 1% of the accounts, that is, in accounts that contain about R$1.06 billion.

In addition, the government is keeping an eye on 48 accounts with over R$500,000 in each. Finance Minister Dario Durigan said that these accounts are under investigation due to potentially suspicious financial transactions, but that it is not enough to have a large balance to be considered guilty of a crime.

Banks Take Over Refund Process

Those who have not withdrawn their winnings by the deadline won’t have to make a new request. The operator of the betting website will be required to submit individual information to the financial institutions, which will include the total balance left over and from which the money was deposited. The banks will then send the money back, where it will usually be deposited in an existing bank account of the same individual.

When the original account has been closed, the funds may be moved to another account for the same person. Caixa Econômica Federal will assume the refund process from Oct. 14 for banks that are having difficulties during the process. Any stake with no result at the end of the deadline is to be cancelled and all winnings returned.

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Financial and Legal Dispute Continues

The shutdown also means that betting advertising and sponsorship materials will be taken off the streets. Furthermore, the government has instructed the betting websites to direct traffic to brasilsembets.gov.br, and domains, subdomains, IP addresses and APIs owned by the operators will be made unavailable.

The National Association of Games and Lotteries (ANJL) has voiced objections to the redirect requirement, saying it imposes a requirement not specifically outlined in the provisional measure. The association has also attacked business entities that had paid R$30 million to get 5-year authorizations and paid taxes in the regulatory regime.

Meanwhile, the authorities have tightened up their enforcement against illegal platforms. The government has been trying to block thousands of gambling websites, as well as apps and social-media profiles linked to illegal gambling sites.

Financial and Legal Dispute Continues

The closure is a significant shift for a market that has been regulated since January 2025. The government statistics show that betting firms were a source of large tax revenues, while football teams were, too, increasingly relying on betting sponsorships. The demise of the sector is not just a story of operators and bettors, but of sports organisations and public finances too.

The legal battle is ongoing in Brazil’s Supreme Federal Court. ANJL and the Brazilian Institute of Responsible Gaming (IBJR) have questioned the ban, and ADIs 8024, 8027 and 8028 are with Justice Luiz Fux.

The provisional measure, too, has to be approved by Congress within the constitutional term of office to be effective. With the shutdown looming, the fate of Brazil’s betting market lies now in the hands of the legislative process and the Supreme Court’s review of the challenges against the ban.

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Source: BNL Data