Brazil’s regulated betting market is under heavier political pressure after President Luiz Inácio Lula da Silva said he supports shutting down online betting platforms. His comments came just months after the country moved into a new federal framework for licensed operators, creating new doubts around a market that was only just starting to adjust to regulation.
The pressure is not only coming from Lula’s remarks. The government is also considering higher taxes on betting companies, while licensed operators are still trying to strengthen their place in the market against illegal sites that continue to target Brazilian users.
Lula’s remarks have put more pressure on the sector
Lula said online gambling has become a “massive tragedy” for many families and said he would support a national ban. He also made clear that any such move would depend on Congress, where betting companies still have political allies and where a full ban may be harder to pass.
That has left the market in a difficult position. Brazil has already created a regulated structure through the Secretariat of Prizes and Betting, or SPA, the Finance Ministry body responsible for authorising, supervising and sanctioning operators. The official list of nationally authorised companies was last updated on March 24, 2026.
Operators now face political and tax pressure
Politics and business pressure are now hitting the market at the same time. Industry groups and operators have warned that higher taxes could make it harder for licensed companies to compete, especially if illegal offshore sites keep operating outside the same rules.
That concern is becoming more serious because the regulated market is still new. Brazil only began enforcing its updated federal system in 2025, after years of looser market conditions and a wave of irregular sites that authorities started blocking in 2024.
Congress could stop the biggest changes
There are signs that Congress may block the most severe proposals. José Guimarães, the minister responsible for relations with Congress, said this week that a full betting ban is unlikely because the current balance in Congress does not support such a move. He said regulation is the more realistic option.
