Brazil’s Gambling Market Faces Fresh Crackdown as Congress Pushes Betting Reforms

May 26, 2026 3 min read John K
Brazil’s Gambling Market Faces Fresh Crackdown as Congress Pushes Betting Reforms

Brazil’s online gambling framework is coming under increasing political pressure as lawmakers from across the political spectrum push for major changes to the country’s Bets Law ahead of the upcoming general election.

Just 17 months after the regulation officially launched Brazil’s legal online betting market, momentum is building in Congress to overhaul or even dismantle the system established under Law No. 14,790/2023.

The debate has intensified in Brasília, where ministers and political blocs are now openly questioning whether the current betting regime has failed. Several lawmakers are advocating for a stricter federal model with tighter licensing rules, stronger advertising controls and expanded player protection measures.

The Bets Law was originally introduced during Michel Temer’s presidency in 2019, but former President Jair Bolsonaro and the Liberal Party refused to sign off on the legislation in 2023. After revisions, President Luiz Inácio Lula da Silva’s government finally approved the framework in January 2025.

Despite that approval, Lula has since become one of the regime’s harshest critics. The president has repeatedly argued that gambling harms low-income households and conflicts with the government’s social welfare agenda. During election campaigning, Lula pledged to introduce new legislation aimed at reducing gambling-related debt and preventing recipients of financial assistance from betting online.

However, Congress may move before the president can present his own reforms.

On 19 May, lawmakers introduced two new proposals in the Chamber of Deputies, Bills No. 2,470/2026 and No. 2,478/2026. Both measures seek to rewrite key parts of the betting framework while strengthening protections for consumers, mental health and household finances.

The proposals also expand gambling harm prevention measures and could significantly reshape how operators are regulated in Brazil.

Support for the reforms comes from parties across Brazil’s ideological divide, including Republicanos, the Workers’ Party, the Liberal Party and the Social Democrats. Analysts believe concerns about rising household debt and financial vulnerability have helped create rare cross-party agreement on gambling policy.

Adding further pressure is the influential Evangelical Caucus, which has long opposed gambling on moral grounds and continues to push for stricter controls.

Some lawmakers are calling for even tougher measures. Federal deputy Pedro Uczai introduced Bill No. 1,808/2026, which would ban betting operations and gambling advertising while dismantling parts of the current regulatory system.

Uczai argued that betting platforms have become “a permanent mechanism for capturing popular income,” worsening debt and financial instability among Brazilian households.

Meanwhile, Senator Eduardo Girão has proposed Bill No. 1,018/2026 targeting cashback promotions, VIP schemes and gamification features used by operators to retain customers. Girão warned that gambling has created “a scenario of profound social, economic and institutional concern” requiring stronger state intervention.

Senator Damares Alves is also continuing efforts to implement a nationwide gambling advertising ban, a move that could dramatically impact sponsorships, media partnerships and customer acquisition strategies across the sector.

With election campaigning accelerating, political negotiations are expected to determine whether Brazil keeps its current betting framework or moves toward a far stricter gambling regime.