Brazil’s prohibition of fixed-odds betting marks the end of a regulatory cycle, but it does not necessarily eliminate the legal issues arising from activities carried out while betting operators were authorized to operate.
Provisional Measure No. 1,394/2026 prohibited the operation, offering, intermediation and advertising of fixed-odds betting in Brazil. The restriction also covers marketing, communications and sponsorship activities related to betting. Existing sponsorship materials and branding were required to be removed within ten days of the publication of the measure.
The consequences therefore extend beyond betting platforms themselves.
Sports clubs, media companies, influencers, agencies, technology providers and other businesses that developed commercial relationships with betting operators are entering a period of contractual and commercial reorganization.
At the same time, questions involving civil liability, responsible gambling and consumer protection remain relevant in relation to the previous period of operation.
Historical obligations remain in force
The Provisional Measure expressly provides that the termination of betting activities does not eliminate certain obligations arising while operators were authorized.
Regulatory, tax and financial obligations remain relevant, as do responsible gambling requirements, sports integrity measures, reporting obligations and the requirement to preserve operational data and records for at least five years.
For companies that operated in this market, document retention and traceability therefore remain important components of legal risk management.
Records involving users, betting activity, financial transactions, self-exclusion mechanisms and responsible gambling measures may become relevant in future regulatory, administrative or judicial proceedings.
Gambling-related harm may continue to generate liability disputes
Civil liability related to gambling disorder is another issue that may survive the end of the regulated market.
Brazil’s previous regulatory framework established responsible gambling measures intended to prevent and mitigate potentially harmful gambling behavior.
Any civil liability assessment will depend on the circumstances of each individual case.
Relevant factors may include the operator’s conduct, information provided to users, preventive mechanisms available, self-exclusion or restriction requests, the existence of actual harm and the causal relationship between the company’s conduct and the alleged damage.
The sponsorship market faces a major reset
The commercial impact is particularly significant in Brazilian sports.
According to Sports Value estimates published by Exame, betting companies invested more than BRL 1.1 billion in Brazilian football clubs in 2025 and accounted for approximately 34% of the marketing revenue analyzed among leading clubs.
Their withdrawal creates both a financial challenge and a potentially significant opportunity for other industries.
Prime sponsorship inventory, including jersey front positions, digital properties, club content, stadium assets, fan activations and other commercial rights, is becoming available again.
Financial services, payment companies, technology, telecommunications, retail, automotive, food, healthcare, construction, streaming, delivery services and consumer electronics are among the industries that may explore this new environment.
The transition, however, may also require a repricing of sponsorship assets.
Betting operators helped drive sponsorship values to historically high levels, and other industries may not automatically reproduce the same financial terms.
This may encourage clubs and brands to develop more sophisticated partnerships based not only on logo exposure, but also on content, digital engagement, data, experiences, licensed products and measurable commercial outcomes.
Contracts become increasingly important
The regulatory change also creates immediate contractual issues.
Sports organizations, influencers, media companies, agencies and other partners should assess provisions dealing with regulatory change, early termination, outstanding payments, unused sponsorship inventory, brand removal, exclusivity and post-termination obligations.
From a broader perspective, the transformation of Brazil’s sponsorship market may increase the relevance of carefully structured agreements covering intellectual property, image rights, data protection, digital rights, advertising obligations and performance metrics.
Brazil’s betting ban therefore produces two parallel legal challenges.
Betting operators must manage residual obligations and potential liabilities arising from their previous activities.
At the same time, sports organizations and brands must navigate a rapidly changing sponsorship market in which valuable commercial assets are being redistributed among new industries.
Provisional Measure No. 1,394/2026 is currently in force but remains under consideration by the Brazilian Congress and may still be amended during the legislative process.
