Meridian Holdings Inc. (NASDAQ: MRDN), an international developer and operator of online gaming and e-commerce platforms, provided an update on Tuesday regarding a Provisional Measure signed by the President of Brazil on September 25, 2026, which prohibits the operation, intermediation, and advertising of online betting and online casino services in Brazil and requires that funds be returned to bettors. The company confirmed that its exposure to the measure is expected to be immaterial.
The Provisional Measure is temporary and must be approved by the Brazilian Congress within 120 days of adoption to remain in effect. Under Brazilian law, it takes effect immediately upon publication in the Diario Oficial da Uniao, is valid for 60 days, and may be extended once for a further 60 days. If Congress does not approve it within that period, it ceases to have effect.
Meridian Holdings stated that Brazil represents an immaterial share of its group revenue. Its Meridianbet brand operates in Brazil through 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 fixed-odds sports betting and online gaming. The authorization is valid until December 31, 2029. The company emphasized that it 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, which limits its exposure to the measure. Meridian Holdings is reviewing the Provisional Measure and its implications with its Brazilian and United States legal advisers.
For investors, the announcement signals that the regulatory change in Brazil is unlikely to materially affect Meridian Holdings' financial performance. The company operates across over 25 international regulated markets, with its B2C division led by Meridianbet Group, founded in 2001 and licensed across Europe, Africa, and South America. Its B2B division includes game developer Expanse Studios and iGaming platform GMAG, which develop, license, and distribute proprietary gaming platforms and content globally. More information is available at www.meridian-holdings.com.
This news is important because it highlights how regulatory shifts in emerging markets can impact international gaming operators, but also demonstrates that companies with diversified revenue streams and conservative market entry strategies may weather such changes with limited damage. The outcome of the Brazilian Congress's review will be closely watched, as it could set a precedent for other markets. Meridian Holdings' public filings, including its Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent quarterly reports, are available at www.sec.gov.
