On Friday, September 25, the President of Brazil issued Provisional Presidential Decree #1,394, which prohibits the offering and advertising of fixed-odds betting throughout the country. Under the measure, the prohibition covers bets on real sporting events and virtual gaming events, including when such services are offered by companies established abroad to users located in Brazil.

The Decree prohibits, within Brazilian territory, all communication, advertising, publicity, marketing, and sponsorship activities related to fixed-odds betting lotteries through any communication channel, whether physical or digital.

It also provides for the termination, within 30 days of its publication, of authorizations granted under Statute #14,790/2023 for the operation of such activities. The text further establishes that authorized operators will not be entitled to the reimbursement of amounts paid to obtain such authorizations nor to any indemnification from the government.

Among the obligations imposed by the Provisional Presidential Decree on betting operators, the following stand out:

• Disable, within 10 days, all websites, applications, and other channels used to offer fixed-odds betting in Brazil, subject to blocking measures;

• Prevent new deposits into bettors' accounts;

• Fully refund amounts wagered on bets whose results have not been determined prior to the termination of operations;

• Ensure payment of winnings from bets whose results are determined during the transition period;

• Provide financial institutions and the Secretariat of Prizes and Betting with individualized information regarding bettors, including the amounts to be refunded and the corresponding source accounts;

• Continue complying with regulatory, tax, and anti-money laundering obligations even after the termination of their authorizations; and

• Preserve data, documents, and records related to their operations for a minimum period of five years.

The Decree also imposes obligations on internet application providers, app stores, and operating system providers, including:

• Adopt appropriate measures to prevent and stop the circulation, within their services, of content covered by the prohibition, including content generated by third parties;

• Remove content that violates the provisions of the Provisional Presidential Decree upon notification by an authority within the Brazilian Consumer Protection System or by the Ministry of Justice and Public Security;

• Prevent the availability of products or services prohibited by the Decree in app stores and operating systems; and

• Remove prohibited products or services upon notification by the competent authority.

Failure to comply with these obligations may result in warnings, fines of up to 10% of the economic group’s revenue in Brazil, capped at BRL 50 million per violation, daily fines, temporary suspension of activities, or a prohibition on conducting activities in the country. In the case of foreign companies, the branch, subsidiary, or establishment located in Brazil may be held jointly liable for the payment of such fines.

The Provisional Presidential Decree also authorizes the Ministry of Finance and the Ministry of Justice and Public Security to order the blocking or redirection of websites offering fixed-odds betting services.

Our team closely monitors legislative and regulatory developments affecting the digital ecosystem in Brazil and is available to assist in assessing the impacts of the new Provisional Presidential Decree. For further information, please contact us at techregulationbr@lickslegal.com.

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