Brazil Sets New Rules for Betting Operators to Refund Player Balances

According to the Brazilian Ministry of Finance’s official announcement, the new instruction establishes how betting companies can use their mandatory financial reserves when they lack sufficient resources to repay customers.

The R$5 million reserve requirement was originally established under Ordinance SPA/MF No. 615/2024 to provide financial protection for bettors. Under the new framework, operators facing a shortfall must submit a formal request to the SPA, supported by documentation demonstrating the outstanding amounts owed to players.

Companies remain responsible for the accuracy of the information submitted. The regulator must review and approve each request before the funds can be released. Once authorised, the money will be transferred to Caixa Econômica Federal, which will administer the repayments.

The reserve cannot be used to cover salaries, taxes, administrative expenses or costs associated with shutting down betting operations.

Normative Instruction No. 32 also clarifies how remaining reserve funds can be released once operators have completed their refund obligations. Companies may request the return of unused funds after demonstrating that no outstanding player balances remain.

This means operators cannot automatically recover their financial reserves simply because their betting platforms have ceased operating. Instead, the release of funds depends on completing the required repayment process and providing evidence to the regulator.

For operators managing their market exit, the measure adds a compliance requirement involving financial records, customer balances and regulatory documentation. It also establishes a clearer distinction between funds reserved for player protection and resources available for other corporate obligations.

While the new rules address immediate refund obligations, uncertainty remains over the industry’s longer-term future. As Ace Alliance’s analysis of Brazil’s iGaming outlook following Lula’s re-election notes, a return to licensed operations will depend on future political and legal developments.

The regulation forms part of Brazil’s ongoing implementation of Provisional Measure 1,394/2026, introduced on 25 September.

As previously covered in Ace Alliance’s Brazil betting ban analysis, the measure prohibited fixed-odds sports betting and online casino operations nationwide, triggering the closure of licensed platforms.

Operators were required to stop accepting new customer deposits and begin returning funds held in player accounts.

The shutdown subsequently entered a dedicated player refund phase, with financial institutions responsible for processing outstanding payments.

However, repayment difficulties remained a regulatory concern.

In October, Brazilian authorities also identified eight betting operators facing action over missing refund information, highlighting the challenges involved in returning customer funds after the market’s closure.

The latest instruction addresses a different issue by establishing how mandatory financial reserves can support repayments when operators have insufficient available resources.

For affected operators, the new framework provides a regulated mechanism for accessing funds specifically intended to protect customers. However, access is conditional rather than automatic. Companies must demonstrate their financial position, substantiate outstanding liabilities and obtain SPA approval. The requirements also place continued importance on accurate customer records and reconciliation of outstanding balances.

Payment providers and financial institutions involved in the shutdown will need to account for the additional repayment mechanism administered through Caixa Econômica Federal. The regulation does not change Brazil’s betting prohibition or resolve the ongoing legal challenges surrounding Provisional Measure 1,394. Instead, it strengthens the operational framework governing the return of player funds as the country’s betting market shutdown continues.