TLDR
- Brazil’s government is drafting a provisional measure to ban online casino games entirely
- Sports betting restrictions are also under consideration in the same decree
- Licensed operators paid $5.8 million each for five-year licenses now at risk
- Brazilian football clubs estimate sponsorship losses of about $194.9 million a year
- Operators plan to challenge the measure in court once it is published
Brazil’s government is drafting a legal decree that would ban online casino games across the country. The news outlet UOL reported the plan on Wednesday, citing sources inside the government.
No official text has been published yet. The government has not confirmed what the decree contains.
President Lula is less than three weeks away from an election. His approval ratings are currently negative.
This week Lula described betting as a disease rather than a game. He said it draws innocent people into addiction.
How the Decree Would Work
The government plans to use a provisional measure. This type of order takes effect as soon as it is published.
Congress then has 60 days to turn the measure into permanent law. Lula’s Workers’ Party tried a similar ban through a regular bill in April, but it did not pass.
Operators and sports clubs had expected smaller changes. Many thought the government would only limit casino games or restrict when betting ads could run.
As of Wednesday night, UOL reported the plan was to ban everything. Reporters described the draft as close to ending online gaming in Brazil completely.
The rules for sports betting are still being finalized. Several options remain on the table, though the position this week leaned toward a full ban.
Brazil’s regulated betting market has only existed since the start of 2025. The Secretariat of Prizes and Bets, part of the Finance Ministry, currently licenses 85 companies according to the operators’ group ABRAJOGO.
Each license costs $5.8 million and lasts five years. It covers up to three brands and requires operators to run their sites on .bet.br web domains.
Football Clubs and Broadcasters Push Back
Brazilian football estimates it would lose about $194.9 million a year in sponsorship money if the ban goes through. Major clubs including Flamengo, Corinthians, Palmeiras, and Sao Paulo each hold betting sponsorship deals worth more than $19.5 million a year.
These clubs are preparing a joint statement against the decree. They plan to call it an election tactic tied to the government’s failure to stop illegal gambling sites.
Broadcasters are also against the plan since betting ads bring in revenue. Globo, the network that airs Brazilian football, runs its own betting operation.
Operators say they will challenge the decree in court once it is published. A similar move in Colombia did not go well for that government.
Colombia’s courts blocked President Gustavo Petro’s emergency gambling tax last year. He was forced to ask Congress for approval instead of using decree power.
A compliance group called ABC-BET sent an open letter asking Brazil’s government not to weaken the licensed market. It asked officials to instead target illegal betting sites by working with banks, payment companies, and advertising networks.
Brazil has already taken steps in that direction. In June, the government gained the power to freeze illegal operators’ funds instead of just blocking their websites.
In July, regulators ordered tobacco-style warning labels on all betting advertisements. The regulator itself has argued for lighter rules on licensed operators, saying enforcement should instead target illegal platforms.
