Will betting really end in Brazil, or are stricter rules the real outcome?
The betting market in Brazil has only just begun to take shape under a regulated framework and is already facing a political challenge in Congress. Bill No. 1,808/2026, filed on 14 April 2026 by a group of 68 lawmakers led by Pedro Uczai (in the photo above), leader of the Workers’ Party (PT) in the Chamber of Deputies, proposes to effectively eliminate betting nationwide.
The PT has also drawn attention as President Luiz Inácio Lula da Silva recently criticised the impact of betting on household finances, stating that many people are “spending what they do not have” and that the government cannot ignore such consequences.
One political aspect makes this debate particularly striking. The Workers’ Party, now associated with this proposal against betting, was in government when the regulatory process advanced. It was under President Lula’s administration that the regulatory framework was established, with rules defined, licensing introduced, and the market’s official operation beginning.
In other words, the same political group that helped organise the sector is now also linked to initiatives advocating for its prohibition.
However, despite the bill’s impact, the attention it has generated, and Lula’s remarks, the political and economic reality suggests a more complex picture. There is a clear gap between what the proposal sets out and what is realistically likely to happen.
A review of the full text available on the Chamber of Deputies website shows that the objective is not to regulate the market but to shut it down entirely. The bill proposes a full ban on the operation, offering, promotion, and even facilitation of fixed-odds betting in Brazil. This includes digital platforms, international websites, and any service that enables users to place bets. There is no room for interpretation or adaptation. The intention is a complete ban.
Mariana Xavier, compliance officer and DPO at VBET Brazil, shared her perspective with SiGMA News: “It is a sensitive topic in an election year, in which betting still occupies, in the collective imagination, a space of distrust. However, this perception does not reflect the advances in regulation, which have brought legal certainty to users, a compliance structure, and significant state revenue.”
How the bill proposes to act
One of the most notable aspects of the proposal is the level of intervention it introduces. The text requires digital platforms, social media, app stores, and even search engines to remove betting-related content. Financial institutions, banks, and payment intermediaries would be required to block transactions linked to the sector.
Another key element is the criminalisation of the activity. The bill provides penalties that go beyond administrative fines. Depending on the case, operating or even facilitating betting could result in criminal sanctions and fines that may reach extremely high levels.
Bill No. 1,808/2026 does not seek to coexist with the recent regulation. It proposes to fully revoke the model established in recent years, particularly Law No. 14,790/2023, which formally structured the regulated betting market in Brazil.
This means that, if approved, the country would return to a pre-regulation scenario. Before Law No. 14,790/2023, Brazil operated under a hybrid model. Gambling was prohibited under the Brazilian Misdemeanours Law, but online sports betting operated in a legal grey area. Foreign companies were able to offer services to Brazilian users without effective prohibition, as there was no specific regulation or strong enforcement mechanisms. In practice, the market existed, but without oversight.
Bill No. 1,808/2026 goes further. It not only dismantles the current regulated model but also attempts to create a more restrictive environment than before, with website blocking, app removal, payment restrictions, and accountability across the entire ecosystem. At this point, the proposal begins to lose strength when analysed in the current context.
A market already in operation
Since 2025, Brazil has had an officially regulated betting market. Licensed operators, compliance requirements, user identification obligations, and active enforcement are already part of the sector’s reality.
This market is already operational, generating revenue, and is closely monitored by the government. Another key factor influencing political decisions is tax revenue. The sector has quickly become fiscally relevant, creating tension between prohibition narratives and economic interests.
In the first quarter of 2026 alone, R$ 3.4 billion (around $680 million) was collected in betting-related taxes, a 123.7 per cent increase compared to the same period in the previous year, reflecting the direct effects of regulation and the entry of licensed operators.
The political environment, however, calls for caution when assessing the likelihood that such proposals will advance. The same Congress that recently approved betting regulation is still dealing with its implementation, which tends to complicate abrupt policy changes in the short term.
The arguments supporting the bill are linked to concerns such as household debt, gambling addiction, and the influence of aggressive advertising, particularly on social media. The Parliamentary Inquiry Commission into betting (“CPI das Bets”), established in the Federal Senate in 2024, has further intensified this debate, raising questions about the social impact of betting and the role of digital influencers.
What is actually advancing
While the proposal for a total ban has not made significant progress, other, more concrete measures are advancing.
Brazil has taken a strong stance against illegal operators, including blocking websites and tightening controls over financial transactions. Advertising rules are also under discussion, with potential restrictions on campaigns and influencer partnerships.
There are also emerging measures aimed at improving the monitoring of user behaviour, preventing gambling-related harm, and increasing operator responsibility. In other words, the direction being taken is different.
From Xavier’s perspective as a lawyer and regulatory specialist, the trajectory of Brazil’s iGaming market is clear: “I do not foresee, in the short term, a prohibition of the sector, but rather a progressive tightening of rules, already noticeable in this first regulatory cycle. Prohibiting the activity in this context would mean stepping backwards and fostering the illegal market, a scenario that is clearly not expected.”
This article was first published in Portuguese on 5 May 2026.
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