Regulatory Radar | Fixed-Odds Betting – Ed. 13

Week of August 17 to 21, 2026

It was another tense week. Federal enforcement widened its wave of suspensions, now reaching more operators and brands, while states and cities pressed ahead with advertising restrictions – and the Office of the Prosecutor General (PGR) asked the Supreme Court to strike down a state law. In Congress, bills that tighten the sector keep piling up. Below are the points that deserve your attention.

The federal enforcement wave of suspensions widens

What last week had hit one major brand in the market has now spread. The Ministry of Finance’s enforcement arm applied precautionary measures of immediate suspension to a larger group of operators, taking more than a dozen brands offline at once. The grounds repeat and form a clear pattern: failure to send information to the government’s monitoring system and, in one case, failure to prove who actually controls the company. While the measures are in force, the sites remain available for withdrawals only, bets in progress are cancelled and refunded, and there is a heavy daily fine for non-compliance.

What this means: The message is about data and corporate-structure compliance, not finances. The most sensitive point is the reporting of information to the government’s system: transmitting is not enough; the data must actually be received and processed. It is worth checking, in your operation, whether your submissions to the monitoring system are in fact being confirmed and whether the company’s control chain is documented and verifiable. A submission the regulator cannot process is, to it, as if it never happened.

In Congress, bills that tighten the sector keep piling up

The week saw intense federal legislative activity. A bill seeking to ban betting entirely was distributed to committees and awaits a rapporteur. Another, which bars commercial advertising of betting, followed the same path. In parallel, the amendment deadlines closed on two bills that already worry the market: one setting a monthly deposit cap and another aimed at protecting the bettor’s mental health and household finances – both now move to the rapporteur. There are also proposals for a new levy on gross revenue and for a national self-exclusion registry.

What this means: None of these bills changes anything today, but the volume is the message. Several fronts are advancing at once – outright ban, advertising restrictions, deposit caps, new taxation – and the week’s political climate tends to give them momentum. The moment to influence the text is now, during the amendment phase and before rapporteurs are chosen. It is worth mapping which of these bills touch your operating model directly and preparing a position.

Minas Gerais bans betting advertising in public spaces

The government of Minas Gerais issued a decree, already in force, banning the advertising, promotion and sponsorship of betting on state-owned assets and spaces – including public stadiums such as the Mineirão, bus stations, airports and state highways. Concessionaires were notified to terminate contracts with betting houses, and the state lottery was instructed to rescind a contract tied to the sector. The state government also signalled that it will encourage municipalities to adopt similar measures in spaces under their control. Along the same lines, in the city of São Paulo, bills restricting betting advertising advanced through committees and are nearing a final vote.

What this means: This is the materialization – now through an act of the state executive, not just a bill – of the wave of advertising restrictions at the local level. The practical effect falls directly on sponsorship contracts, media in arenas and deals with state lotteries. If your operation is exposed to public spaces or to sponsorships in Minas Gerais – and, soon, in other markets – it is worth reviewing those contracts and building in clauses for local-restriction scenarios. The trend is likely to spread.

PGR takes state advertising law to the Supreme Court

The Office of the Prosecutor General (PGR) asked the Supreme Court to suspend a Rio Grande do Sul state law that restricts betting advertising. The argument is the usual one in this debate: only the Union may legislate on the matter, so a state law would encroach on federal competence. It is a request, still without a decision from the court. The state law, incidentally, is set to take full effect at the end of August, which lends urgency to the matter.

What this means: Here is the flip side of local restriction: as states and cities push forward, the central power reacts at the Supreme Court to preserve the federal rule. The underlying dispute – who may legislate on betting advertising – should begin to be resolved through this kind of action. For the market, an endorsement by the Supreme Court of the Union’s position would weaken restrictive local laws; the opposite would open the door to a patchwork of state and municipal rules. This is worth watching closely: it is the same debate affecting Minas Gerais, São Paulo and other markets.

Official data fuel the pressure for more rules

The Ministry of Finance released figures on the regulated market that quickly entered the week’s debate. Beyond the growth in the sector’s gross gaming revenue, one compliance figure drew attention: in 2025, operators’ revenue reportedly amounted to about 16.7% of deposits, above the 15% legal cap. The numbers surfaced at the very moment when new taxation and restriction proposals are moving through Congress.

What this means: Official numbers, in a year of political pressure, become ammunition for new tax and cap bills. The cap figure is the most sensitive from a compliance standpoint: it is a benchmark the regulator may start to enforce case by case. It is worth checking how your operation stands in relation to that limit and keeping the calculation methodology well documented, because the official reading of this indicator is likely to gain weight.

Looking ahead to the coming weeks

• Rio Grande do Sul’s state advertising law is set to take full effect at the end of August – and is under challenge at the Supreme Court.
• The Ministry of Finance’s public consultation on authorization rules remains open, with a deadline estimated for early September – a window to contribute.
• The set of actions challenging the Betting Law at the Supreme Court remains awaiting the docket in the second half of the year.
• In the city of São Paulo, the advertising-restriction bills are moving toward a plenary vote.

Our team is available to discuss the impact of any of these topics on your business.

This material is for informational purposes only and does not constitute legal advice. The analyses reflect the team’s understanding as of the date of publication and may be revised as regulations or case law evolve. For specific guidance on concrete situations, consult a member of the team. © Souto, Correa Advogados – Gaming & Betting Practice.