TLDR
- Brazil’s Workers’ Party filed a bill to completely ban online gambling, ads, and all related transactions across the country
- Congress is unlikely to move forward with the ban due to upcoming elections and other legislative priorities
- Regulated betting brought in nearly R$9.95 billion in tax revenue for Brazil’s federal government in 2025
- President Lula criticized the gambling industry’s lobbying power, saying “the casino is inside people’s homes”
- The proposed bill includes fines and imprisonment for violators, but lawmakers are leaning toward targeting illegal operators instead
Brazil’s federal government is trying to shut down online gambling entirely, but Congress doesn’t appear ready to go along with the plan.
The Workers’ Party, known as PT, filed a bill in the Chamber of Deputies that would ban all betting operations in the country. The bill also targets advertisements for betting platforms and would block both physical and digital transactions tied to gambling services.
The push comes from the Executive branch, led by President Luiz Inácio Lula da Silva, who has been vocal about his frustration with the gambling industry. Lula said there is too much lobbying happening in Congress, which has blocked efforts to pass tighter rules.
Congress Faces Competing Priorities
Despite the government’s strong stance, early signals from lawmakers suggest the bill is going nowhere fast. Several political parties have made it clear that gambling regulation is not at the top of their agenda right now.
Leaders from PL, PDT, and Republicanos said the issue has taken a back seat. The reason is straightforward. Brazil has elections coming up, and labor law reform is dominating the legislative calendar.
That political reality makes it difficult for the ban to gain traction in the near term. Lawmakers are focused on issues they believe matter more to voters heading into the election cycle.
The bill was introduced by Congressman Pedro Uczai, who leads the PT in the Chamber. It calls for a full prohibition on betting activities and advertising campaigns tied to gambling.
Under the proposed law, anyone who violates the ban would face monetary fines and possible imprisonment. Uczai reportedly considered raising tax rates on gambling as an alternative but moved forward with the outright ban instead.
Tax Revenue Complicates the Debate
One of the biggest obstacles to banning online gambling is the money it brings in. In 2025, regulated betting platforms generated close to R$9.95 billion in tax revenue for the federal government.
That number is expected to grow. Projections show gambling tax revenue could increase by 13% in 2026 and by 15% in 2028. Those figures make it harder for lawmakers to support a full ban.
Some members of Congress have suggested a different path. Rather than banning gambling altogether, they want to crack down on illegal operators while keeping the regulated market intact.
President Lula has publicly pushed back on that approach. He said gambling operations are causing harm and described the situation as having “the casino inside people’s homes.”
The disagreement between the Executive and Legislative branches has turned gambling regulation into a growing public debate. Citizens are increasingly paying attention to where their leaders stand on the issue.
The political deadlock means the status quo is likely to hold for now. With elections on the horizon, Congress has little incentive to take up a controversial topic that could alienate voters or cut into government revenue.
For the time being, Brazil’s online betting market will continue operating under existing regulations. The focus from Congress appears to be shifting toward enforcement against unlicensed operators rather than an industry-wide shutdown.
Tax revenue projections for 2026 show regulated gambling could bring in even more money for the government, making a full ban increasingly difficult to justify from a fiscal standpoint.
