Brazil’s regulated betting industry is facing another direct political challenge after Federal Deputy Caroline de Toni introduced legislation that would abolish fixed-odds betting and cancel existing federal operating permissions within six months.
De Toni, a Liberal Party representative for Santa Catarina, filed Bill 5,153/2026 in the Chamber of Deputies on 24 August. The proposal would eliminate fixed-odds betting as a permitted lottery category and prohibit its commercial operation, promotion and facilitation throughout Brazil.
Under the proposed legislation, existing authorisations would be terminated 180 days after the law takes effect, regardless of the original duration granted to operators. The measure also provides for blocking access to betting platforms and cutting financial services connected to prohibited operations.
The legislation remains at an early stage and has not yet been approved by Congress.
Pressure builds on Brazil’s young regulated market
Brazil introduced its fully regulated national betting system on 1 January 2025 following the implementation of legislation and regulations developed around Laws 13,756/2018 and 14,790/2023.
Since then, only companies authorised by the Ministry of Finance’s Secretariat of Prizes and Bets, known as the SPA, have been permitted to operate nationally. Licensed brands must use Brazilian domains ending in “.bet.br”.
The regulated sector has continued expanding. In August 2026, the Ministry of Finance published documentation covering 85 companies approved by the SPA to offer fixed-odds betting in the country.
De Toni’s proposal would reverse that framework rather than introduce another layer of restrictions. Its scope extends beyond sports betting operations to advertising, sponsorship and payment infrastructure supporting the sector.
The bill is also not the only attempt currently before Congress to dismantle Brazil’s betting regime.
Senator Carlos Fávaro introduced Bill 4,977/2026 on 11 August, proposing a broad prohibition on betting operations, advertising, sponsorship and intermediation in both physical and digital channels. That measure remains before the Senate.
Separately, Deputy Rodrigo Rollemberg’s Bill 2,972/2026 seeks to ban commercial fixed-odds betting and revoke Law 14,790/2023. The proposal has already been referred to several Chamber committees and was received by the Consumer Protection Committee in August.
Gambling becomes a growing political issue
Calls for tougher action have intensified ahead of Brazil’s October 2026 general election, with criticism emerging across different parts of the political spectrum.
President Luiz Inácio Lula da Silva has repeatedly questioned the social impact of online gambling and has indicated that significantly tighter restrictions, or even prohibition, could be considered if the regulated model is judged to be causing excessive harm.
Government authorities have already demonstrated a willingness to restrict products deemed to fall outside the legal framework. In April, Brazil moved to block prediction-market platforms after authorities concluded that event-based contracts offered by such businesses were incompatible with the country’s betting rules.
Political debate has increasingly focused on household finances, debt and the amount of consumer spending directed towards betting.
De Toni argues that the sector has become large enough to influence household consumption, savings and indebtedness. Her bill would therefore replace the current licensing approach with a national prohibition and enforcement system aimed at both operators and supporting businesses.
For licensed bookmakers, the latest proposal adds to mounting regulatory uncertainty only around 20 months after Brazil’s regulated market formally opened.
None of the current prohibition bills has yet completed the congressional process, meaning licensed operators remain able to conduct business under the existing SPA framework. However, the growing number of proposals seeking to dismantle that system shows that the future structure of Brazilian betting is becoming an increasingly prominent political issue ahead of the election.