Meridian Holdings Inc. (NASDAQ: MRDN), a Las Vegas-based 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. This development matters because it signals a significant regulatory shift in one of Latin America's largest gaming markets, potentially affecting operators with substantial Brazilian exposure. However, Meridian Holdings has confirmed that Brazil represents an immaterial share of its group revenue, and its exposure to the measure is limited due to its conservative market entry strategy.
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 authorisation is valid until December 31, 2029. Meridian Holdings stated that it has been, and continues to be, fully compliant with the Provisional Measure and all applicable regulatory requirements in Brazil. Because 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. 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. This means the measure is not yet permanent, and its ultimate impact will depend on legislative action within the next 120 days. For Meridian Holdings, the key implication is that its Brazilian operations may face temporary disruption, but the financial impact is expected to be immaterial. The Company's broader portfolio spans over 25 international regulated markets, with its B2C division led by Meridianbet Group and its B2B division comprising game developer Expanse Studios and iGaming platform GMAG. This diversification helps mitigate risks from any single market.
Investors and industry observers will be watching how the Brazilian Congress handles the Provisional Measure, as its approval or rejection could set a precedent for online gaming regulation in the region. Meridian Holdings' proactive compliance and limited exposure underscore its risk management approach. As the situation evolves, the Company remains focused on its global operations and regulatory compliance. For more information, visit www.meridian-holdings.com. The Company's public filings, including its Annual Report on Form 10-K and quarterly reports, are available at www.sec.gov. These resources provide further details on the Company's risk factors and financial condition.
