The Brazilian government is preparing a Provisional Measure that could impose new restrictions on betting operators and prohibit parts of the industry, with online casino games and certain sports betting formats among the areas under examination, according to reporting by CNN Brazil.
President Luiz Inácio Lula da Silva said he personally favours ending sports betting in the country, while acknowledging that the decision is not his alone to take.
“Personally, I would put an end to betting. I think it’s a bad thing for society. Now, as President of the Republic, I know I have to share decisions to do them in the most correct way possible, without compromising the political, economic, and social stability of this country.”
The comments followed a meeting at the Planalto Palace last week with representatives from economic sectors, civil society organisations, experts and artists. Betting companies were not among those represented. Lula told the room the government was close to a decision.
“We have to take action as a state, whether we are going to take a drastic decision or not. I asked you to come here because I wanted to hear what society thinks […] Two-thirds of the decision has already been made; this meeting was needed so that we can sign and make this decision.”
What will Brazil do about betting?
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What the measure could cover
The options under discussion run from tighter enforcement against the illegal betting market to the prohibition of entire regulated segments. Online casino games, including the “tigrinho” style slot titles that dominate Brazilian advertising, and some sports betting modalities are both being examined.
Any prohibition of online casino would reverse a framework the same government built. Law 14.790/2023 legalised fixed-odds betting and online gaming, and the licensing regime took effect on 1 January 2025 under the Secretariat of Prizes and Betting (SPA), a body inside the Ministry of Finance. Operators pay R$30 million for a five-year licence covering up to three brands, plus 12% of gross gaming revenue (GGR).
Positions inside the government differ. Some presidential aides are assessing the effects of restrictions, while another group favours more limited action. The Ministry of Finance, which has overseen regulation of the sector since the framework was drafted, is resisting the tougher options.
Why the government chose a decree
A Provisional Measure takes effect on publication, which is the reason the initiative is being prepared in that form. Internal government assessments concluded that a conventional bill would face resistance in the National Congress and could not be approved before the elections.
The parliamentary calendar supports that reading. The next period of concentrated legislative activity is expected only in October, and the government’s current priority in Congress is the proposed constitutional amendment to end the 6×1 work schedule.
The Civil House is leading discussions over the content of the measure, which is still being finalised. Sources at the Planalto Palace said the government intended to send the text to the National Congress during the week that began Sunday, 6 September.
Polling ahead of the October vote
The restrictions are being drafted with less than 30 days to go before the elections. Internal Workers’ Party (PT) polling reported by journalist Lauro Jardim in his Sunday column in O Globo puts Lula at his lowest approval rating of the past 12 months.
Internal campaign surveys indicate that three out of four Brazilians oppose betting, with rejection higher among women and young people, two groups the reelection campaign has identified as priorities.
Independent polling points the same way. The Latam Pulse Brazil survey conducted by AtlasIntel in April found that 63.2% of respondents believed online gambling only harms society, and 70% said it had contributed greatly to the financial ruin of families. Asked who was responsible for the expansion of gambling in Brazil, the largest share, 35.3%, named the Lula government itself.
An Estadão editorial published under the title “At the mercy of the polls” argued that the government’s actions were driven by electoral considerations.
Household debt and addiction
Officials have linked the expansion of gambling to rising household indebtedness and have assessed that the issue is affecting perceptions of Lula’s third presidential term. The government has also recorded an increase in gambling addiction across the country.
Licensed operators have argued the opposite case throughout the debate, that prohibition removes the payment controls, advertising rules and player protections that came with regulation, and moves volume to operators outside the system. European enforcement data gives an indication of the scale involved, with the region’s illegal online gambling market estimated at €12 billion in gross win despite licensed alternatives in most markets.
What happens next?
The text has not been published, and the scope of any prohibition remains open while the Civil House finishes drafting. Once signed, a Provisional Measure is valid for 60 days and can be extended once for a further 60. If Congress does not convert it into law within that window, it lapses, and the legal position reverts.
That gives operators, suppliers and payment providers a defined period in which to make their case to a Congress that has so far shown little appetite for restricting the sector before an election. Companies that paid R$30 million for licences 20 months ago will be asking what a decree does to that investment, and whether compensation is on the table if a vertical they were licensed to run is closed.
Source: Brazil Parliament; CNN Brazil; President Lula office
