Brazil Bill Proposes Refunds for Betting Net Losses

A new proposal before Brazil’s Chamber of Deputies could require betting operators to return customers’ net losses, with the refunded amounts adjusted for inflation.

Federal Deputy Ricardo Abrão submitted PL 5,502/2026 on October 1. Under the proposal, operators that receive player funds would have to reimburse customers when the total amount they deposited is greater than the amount they withdrew or otherwise recovered.

The bill defines the relevant net loss by comparing deposits with withdrawals or funds recovered from the operator. If the provision is adopted, the amount owed to eligible players would be adjusted for inflation from the date each payment was made.

The proposed reimbursement would also have to be made without fees, deductions or similar charges.

PL 5,502/2026 sets out further circumstances that could trigger reimbursement. Article 3 covers matters including unpaid winnings, as well as bets accepted from players who had self-excluded or transactions made through unauthorized debits.

Importantly, the proposal does not appear to make proof of operator misconduct a condition for receiving reimbursement of net losses.

The bill does not establish a specific commencement or cutoff date. As a result, bets placed before the market’s closure could potentially be covered by the proposed rules.

The definition of an operator is also not restricted to businesses holding a Brazilian licence.

Several practical aspects remain unspecified in the proposal. These include whether customers would receive refunds automatically or would have to submit claims, as well as the deadline by which operators would need to complete the relevant calculations.

PL 5,502/2026 will now move forward through Brazil’s legislative process.