After less than 18 months of legalization, the future of online gambling in Brazil is back under threat after the governing party put forward a bill to repeal all laws and provisions governing online betting introduced under the Bets Law (PL 2626/2023).
It’s a seismic move by Brazil’s Workers’ Party (PT), which has appeared increasingly uneasy with the idea of legalized gambling. Last week, Brazil president Lula Da Silva called the legalization of gambling a “massive tragedy” for families across Brazil, where the average household debt is exploding.
He told website ICL Noticias: ““If it is up to me, we will close them. I am deeply worried about the indebtedness of the Brazilian people. If these platforms cause harm, why don’t we end them? We are discussing this very seriously.“
Nothing off the table in proposed bill
The federal ban would apply to the full gambling system created under the Bets framework, targeting all aspects of online betting operations, including advertising, sponsorships, payment processing and related intermediary services. It has been introduced and sponsored by PT deputy Pedro Uczai.
Supported by 68 members of PT, the measure calls for taking down betting apps and websites, blocking gambling-related financial transactions, and imposing strict penalties on operators, affiliates and service providers that violate the ban.
Brazil has a long and shifting history with legalized gambling, marked by periods of expansion and prohibition. For decades, most forms of gambling have been banned. Limited exceptions emerged over time, including horse racing and federally authorized lotteries.
However, in 2018, Brazil approved fixed-odds sports betting, but left regulation incomplete for several years. A more comprehensive framework came with the Bets Law, which established rules for online betting and took effect in January 2025. It is this law that da Silva and his government are hoping to rein in.
Uzcai says it is the duty of government to act
The proposal does not bear the signature of da Silva or any senior federal officials, meaning it remains a legislative initiative rather than formal government policy. However, Uczai spoke strongly in his condemnation of online gambling and the impact he feels it is having on society.
Speaking to Congress, Uzcai said: “If betting causes the harm we think it does, why don’t we just get rid of it? Or regulate it so there aren’t so many bets in Brazil, allowing you to have some, if they even serve any purpose.”
However, without clear support from da Silva, the bill’s prospects are uncertain. The silence also suggests the government may be weighing political and economic implications, including potential tax revenues from regulated betting and concerns about social harm, before taking a position.
In Brazil’s system, major policy shifts, particularly those reversing recently enacted regulations, usually require alignment between Congress and the presidency. It means the lack of an executive stance is a key factor in how the proposal is likely to progress.
Proposal likely to face fierce resistance
Any efforts to roll back legalized gambling in Brazil is likely to create political tension within the PT and across Congress. Given the betting framework was approved under da Silva, any reversal would be a challenge to a policy developed during his administration. That raises questions about consistency in governance and internal alignment.
The issue is particularly sensitive because the existing regime is the result of years of legislative effort. Repealing it could be seen as undermining a decade-long push to regulate and tax online betting, potentially eroding confidence among lawmakers who supported the framework and expected long-term policy stability.
A reversal could also carry economic consequences. The regulated betting market was designed to generate tax revenue and formalize a previously unregulated sector. Brazil’s federal tax authority, Receita Federal, estimates gambling will generate 13 billion reais (2.17 billion euros) in revenue by 2026, funds seen as key to supporting government social programs.
Politicians are thought to be weighing the economic reputation of Brazil and some commentators argue the move will signal policy volatility to international markets. Regular switching between legalization and prohibition are considered a major turn-off for foreign investment, particularly in emerging industries where regulatory clarity is critical for long-term planning and compliance.
As debate continues, it remains unclear whether Lula and senior PT figures will back Bill PL-1808/2026 or whether it reflects political positioning ahead of Brazil’s October elections. That uncertainty adds to concerns about the bill’s viability and the broader direction of gambling policy in the country.
