Meridian Holdings Inc. (NASDAQ: MRDN), an international developer, licensor, and operator of online gaming and e-commerce platforms, has provided an update on the Brazilian Provisional Measure signed by the President of Brazil on September 25, 2026. The measure prohibits the operation, intermediation, and advertising of online betting and online casino services in Brazil and requires that funds be returned to bettors. The measure is provisional and is expected to be subject to approval by the Brazilian Congress within 120 days of adoption to remain in effect.
Brazil represents an immaterial share of Meridian Holdings' group revenue, according to the company. The company's Meridianbet brand operates in Brazil through its subsidiary Meridian Gaming Brasil SPE Ltda, which holds authorisation SPA/MF nº 0086/2024, granted by Portaria SPA/MF nº 526 of March 14, 2025, for the operation of fixed-odds sports betting and online gaming. The company has been, and continues to be, fully compliant with the Provisional Measure and all applicable regulatory requirements in Brazil.
The company entered the Brazilian market on a conservative basis and did not commit large-scale marketing expenditure in advance of licensing. Its exposure to the measure is limited as a result. The company's authorization in Brazil was granted until December 31, 2029. The company is reviewing the Provisional Measure and its implications with its Brazilian and United States legal advisers.
Under Brazilian law, a Provisional Measure takes effect on publication in the Diario Oficial da Uniao and has immediate force of law. It is valid for 60 days and may be extended once for a further 60 days. The Brazilian Congress must approve it within that period, failing which it ceases to have effect.
Meridian Holdings Inc., headquartered in Las Vegas, Nevada, is a B2B and B2C gaming technology group operating across over 25 international regulated markets. The company's B2C division is led by Meridianbet Group, an online sports betting and gaming operator founded in 2001 and licensed across Europe, Africa, and South America. The company's B2B division, comprising game developer Expanse Studios and iGaming platform GMAG, develops, licenses, and distributes proprietary gaming platforms and content to a global client base. For more information, visit www.meridian-holdings.com.
This news matters because it clarifies the limited financial impact of Brazil's regulatory shift on Meridian Holdings, a publicly traded company. While the ban could disrupt online betting operations in Brazil, the company's conservative market entry and compliance posture mitigate potential losses. Investors may find reassurance in the immaterial revenue exposure, but the situation underscores broader risks in the regulated gaming sector, including regulatory volatility. The outcome of the Congressional review will determine whether the measure becomes permanent, affecting future operations and licensing in Brazil. The company's forward-looking statements highlight various risks, including regulatory changes and licensing maintenance, which are detailed in its SEC filings available at www.sec.gov.
