Lula Weighs Ban on Bets as Brazil Sector Defends Regulation

Lula Considers Broad Restrictions on Online Betting

Lula signaled the possibility of a ban during a rally in Maceió on Thursday, saying he would make “important announcements” and indicating that he wanted to stop betting companies before they caused greater harm to the population. The scope of the measure was still being finalized, with government sources indicating that both sports betting and online casino products could be affected.

The proposal under consideration would represent a significant change for Brazil's regulated online gambling market. Fixed-odds betting was authorized through legislation approved in 2018 and subsequently incorporated into the regulatory framework established by Law No. 14,790/2023. The regulated market began operating in 2025 after the government established licensing requirements and the Ministry of Finance evaluated applicants.

Under the current framework, licensed operators are subject to regulatory oversight, taxation and requirements related to player protection and market integrity. The Ministry of Finance's Secretariat of Prizes and Betting (SPA) has also continued to strengthen measures against unauthorized operators. In September, the SPA published a new ordinance expanding procedures to identify and block payment transactions associated with illegal fixed-odds betting operations.

Potential Impact on the Regulated Market

A prohibition would therefore come after the implementation of a formal regulatory structure for online betting in Brazil.

The government has been examining different approaches in recent weeks, ranging from restrictions on advertising and online casino products to a broader prohibition covering sports betting and other online betting activities. Reuters reported that the government was also considering the legal and technical basis for the measure, while assessing its potential effects on football clubs.

Football Clubs Could Also Be Affected

A ban on betting platforms would have implications for Brazilian football clubs that have sponsorship agreements with betting companies.

According to reports, the government has been discussing support measures for clubs, including credit lines and debt renegotiation, to address the financial impact associated with the loss of betting sponsorships. CNN Brasil reported that these issues were among the final points being addressed before the government moved forward with the measure.

During his recent statements, Lula also referred to Brazil's football titles achieved before the existence of betting platforms.

Measures to Address Household Debt

The betting initiative is being presented alongside measures described by the government as new actions to protect families and the popular economy.

One of the initiatives under discussion is aimed at addressing household indebtedness. Lula said on Thursday: “I will announce other good things for society as well. I am concerned about debt.”

The debt agenda comes as the government links the debate over betting to concerns about household finances and the potential social effects of excessive gambling.

SPA Structure Could Also Be Reconsidered

The possible prohibition of online betting is also prompting discussions about the future of the Ministry of Finance's Secretariat of Prizes and Betting.

Created in January 2024, the SPA is responsible for regulating, authorizing, monitoring and supervising fixed-odds betting activities, as well as applying sanctions. Its creation followed the approval of Law No. 14,790/2023, which established the legal framework for fixed-odds betting and online games.

If the government proceeds with a prohibition, one option under consideration would be to reduce the SPA's structure and maintain functions focused on combating illegal betting and overseeing lotteries.

The possibility of restructuring the SPA comes while the secretariat continues to carry out regulatory and enforcement activities. Its recent measures include strengthening controls over payment transactions connected to unauthorized betting operations.

Questions Over Tax Revenue and Regulation

Changes to the regulated market could also affect public revenues generated by betting activity. The current framework establishes tax obligations and allocations to areas including sports, health, public security and social security.

The SPA was created to administer this regulated environment, including licensing, compliance, monitoring, integrity and responsible gambling requirements.

Any decision to dismantle or substantially alter the current framework would also raise legal questions involving existing operator authorizations and investments made under the regulatory system.

The government is reportedly consulting the Office of the Attorney General and the Ministry of Justice regarding the legal structure of a potential provisional measure and its possible consequences.

Betting Sector Defends the Regulated Market

Against the possibility of a broad prohibition, the National Association of Games and Lotteries (ANJL) and other iGaming industry organizations have called for the continuation of Brazil's regulated betting market.

In a joint manifesto, the organizations argue that regulation has established mechanisms for supervision, player protection, taxation and the fight against illegal operators.

“Companies did not bet on improvisation. They bet on Brazil's rules,” the manifesto states.

The document argues that dismantling the regulated market could push betting demand toward unauthorized operators, where mechanisms such as CPF verification, self-exclusion and protections for vulnerable players would not apply in the same way.

Industry Highlights Player Protection and Illegal Market Risks

The associations also point to the potential effects on minors, arguing that the regulated framework provides controls that would not be available to the same extent in an illegal environment.

The manifesto further highlights legal certainty for companies that received government authorization and invested in the Brazilian market. It argues that breaking those authorizations could lead to legal disputes and compensation claims, while also affecting employment and business activity across sectors connected to betting, including sports, technology, advertising, tourism and payment services.

The industry position is that the response to existing challenges should involve stronger enforcement and regulation rather than a prohibition.

“Regulating is controlling. Prohibiting is losing control,” the manifesto states.

Industry Calls for Dialogue

The organizations called on Congress and the Executive Branch to approach the future of the regulated betting market with “serenity, dialogue and institutional responsibility.”

The manifesto proposes stricter advertising rules, stronger protections for vulnerable groups, effective enforcement and intensified action against illegal operators.

The document was signed by ABC-Bet, ABFS, ABRAJOGO, AIGAMING, AMIG, ANJL, IBJR, IJL and SINDIBETS, representing associations and organizations connected to sports betting, online gaming, fantasy sports and responsible gambling in Brazil.

As the government prepares its decision, the future of Brazil's regulated betting framework remains tied to the final content of the proposed measure, its legal viability and any subsequent action by Congress.