Brazilian President Luiz Inácio Lula da Silva’s government is preparing a provisional measure that could impose significantly tighter restrictions on the country’s regulated betting market, with online casino games and gambling advertising among the areas under review.
The proposal is being coordinated by Brazil’s Civil House, according to CNN Brasil, which reported that the government intends to use a provisional measure rather than a conventional bill. Such measures can take legal effect immediately after publication, although they must subsequently be considered by Congress. The final wording has not yet been completed.
One of the most significant options being examined is a restriction or outright prohibition on online casino products, potentially leaving regulated sports betting as the principal form of online wagering permitted at federal level. Further limits on betting advertising are also under consideration.
Government debate over the scale of restrictions
The proposals follow increasingly critical comments from Lula about Brazil’s betting sector. During a recent meeting at the presidential palace involving representatives of civil society, economic groups and specialists, the president said he personally favoured ending betting operations but recognised that any government decision would need to consider broader economic, political and social consequences.
Concern inside the government centres partly on household indebtedness and problem gambling. CNN Brasil reported that presidential advisers see growing gambling participation as contributing to financial pressure on Brazilian households, while internal polling cited by the government reportedly shows substantial public opposition to betting.
However, there is disagreement over how far new restrictions should go. Brazil’s Ministry of Finance, which oversees the regulated fixed-odds betting framework through the Secretariat of Prizes and Betting (SPA), is reported to favour a more measured approach and stronger action against illegal operators rather than sweeping restrictions on licensed businesses.
Brazil’s regulated national market formally entered its current phase on 1 January 2025. Operators must hold SPA authorisation to offer fixed-odds betting nationally, while approved websites operate under the .bet.br domain. The Ministry of Finance said in August that 85 companies had been authorised through the federal licensing process.
Licensed operators face uncertainty after major investment
Any major restructuring of the regulated sector could have substantial financial consequences. Licensed companies have collectively invested billions of reais in federal authorisations and in establishing operations under Brazil’s new regulatory system.
The government would therefore need to balance its concerns over gambling-related harm with the legal and financial implications of materially changing a framework introduced only recently. Restrictions affecting previously authorised activities could trigger challenges from operators seeking to protect licence fees and other investments.
The betting market has also become an increasingly important source of government revenue. iGamingBusiness reported that Brazil collected almost BRL10 billion in taxes from the licensed sector during 2025, while collections reached approximately BRL8.7 billion during the first seven months of 2026. Federal tax authorities expect the figure for the full year to reach around BRL16 billion.
Meanwhile, regulators are continuing to strengthen oversight rather than simply expanding the market. The SPA’s 2026–2027 regulatory agenda includes reviews of operator authorisation procedures and measures designed to prevent payment transactions involving unauthorised betting companies.
Brazilian authorities have also intensified enforcement against illegal gambling. In September, the Ministry of Justice established procedures allowing the government to pursue forfeiture of more than BRL1 billion already blocked in cases involving unauthorised betting activity.
Recent federal investigations have separately targeted suspected tax evasion, money laundering and unlicensed betting businesses. One August operation focused on a betting group alleged to have processed more than BRL5 billion during 2025 while investigators examined possible tax and financial offences.
The planned provisional measure therefore comes as Brazil enters another major phase in its gambling policy debate. The government has not yet confirmed exactly which restrictions will appear in the final text, leaving licensed operators waiting to see whether the next intervention focuses mainly on advertising and illegal gambling or fundamentally reduces the range of products that the regulated industry can offer.