Brazil Weighs Online Casino Ban Ahead of October Election

From exclusive events and interviews to real-time market trends, Ace Alliance brings you unbiased, well-informed, and data-driven content. Our editorial team adheres to strict editorial standards, ensuring that the information you receive is not only relevant but also trustworthy.

Built by market experts hosting events since 2023, with our first event in Riga, Latvia gathering over 300 top level iGaming industry executives, Ace Alliance is able to provide you with reliable information from direct interaction with experts and leaders in the sector.

Altay Celikkaya

Content Manager

Updated: 18/09/26

Reading Time: 4 minutes

Brazil’s federal government is reportedly preparing a provisional measure that could ban online casino operations while leaving sports betting outside the direct prohibition. The proposal is under discussion within President Luiz Inácio Lula da Silva’s government ahead of the 4 October general election, but no final text has been published and its scope remains subject to change.

The distinction between casino gaming and sports betting would represent a significant change for Brazil’s regulated market, where operators are commonly authorised to offer both verticals. The discussions also raise questions around existing licences, tax revenue and the commercial relationship between betting operators and Brazilian sport.

Luiz Inácio Lula da Silva pictured in front of the Brazilian flag against a dark blue background.

Regulation & Compliance

Key Takeaways From Brazil’s Proposed Casino Ban

Brazil’s government is reportedly preparing a provisional measure targeting online casino operations.
The final proposal has not been published and discussions within the government are continuing.
Sports betting and sponsorship agreements involving clubs and competitions could remain outside the direct ban.
Brazil currently has 188 authorised betting operators, according to Reuters.
Existing licences cover both sports betting and online casino products, creating potential commercial and legal exposure if casino gaming is removed.
The proposal comes as Brazil separately strengthens enforcement against operators outside the regulated market.

Proposed Measure Could Split Casino and Sports Betting

Reuters reported on 17 September that the federal government was preparing a provisional measure focused on online casino operations. Sources familiar with discussions at the presidential office indicated that Lula could approve the final text before the first round of the election.

Under the version described by two sources, fixed-odds sports betting would remain permitted, as would sponsorship agreements involving sports clubs and competitions. The approach would therefore separate two product categories that are currently offered under the same regulated framework.

Lula has repeatedly expressed concern about the impact of gambling on household finances and gambling-related harm.

Addressing the issue, Lula said:

My personal position is to end betting.

Discussions with ministers are continuing, meaning the eventual measure could still differ from the version currently being considered.

Existing Licences Create a New Regulatory Question

The significance of the proposal extends beyond whether individual casino products remain available. Licences issued under Brazil’s regulated framework cover both online casino gaming and fixed-odds sports betting, while many operators generate revenue across both verticals.

Reuters reported that Brazil currently has 188 authorised betting operators. Industry estimates cited by the news agency suggest online casino products account for between 50% and 70% of revenue for some businesses, meaning a casino-only prohibition could materially change the economics of existing licences.

The federal government collected almost R$10 billion from sector licensing fees and taxes in 2025, according to Treasury data cited by Reuters. Removing casino products could therefore affect both operator revenue and government receipts, even if sports betting remains legal.

The National Association of Gaming and Lotteries has also raised the possibility of claims from operators that paid for authorisations covering activities later restricted by the government. Its legal adviser estimated that potential compensation liabilities could reach R$120 billion, although this is an industry estimate rather than a government assessment.

Latest Move Goes Beyond Earlier Ban Proposals

The reported provisional measure is separate from previous efforts to restrict or prohibit gambling in Brazil.

In April, lawmakers introduced PL 1808/2026, a legislative proposal seeking to dismantle substantial parts of the existing online gambling framework. Ace Alliance previously examined the Brazilian proposal seeking a nationwide online gambling ban. That bill remains a separate congressional process rather than the executive measure now being discussed by the federal government.

Political pressure also increased in August when São Paulo Governor Tarcísio de Freitas called for a nationwide ban on online betting. His comments represented a public call for prohibition rather than a new federal regulatory measure.

Separately, lawmakers are considering tighter commercial and product restrictions under PL 2470/2026. The proposal would restrict advertising, affiliates, bonuses and sponsorship while creating a framework that could remove certain high-risk casino products. Ace Alliance covered the latest stage in its report on Brazil’s proposed betting advertising restrictions.

Brazil Tightens Enforcement Against Illegal Betting

The potential restriction on licensed casino products is emerging as Brazil simultaneously strengthens enforcement against unauthorised betting.

On 15 September, the Secretariat of Prizes and Betting announced Portaria SPA/MF No. 2,750/2026, expanding procedures for identifying and disrupting payments linked to illegal fixed-odds betting operations.

The official Ministry of Finance announcement states that the rules strengthen the identification of accounts used by illegal operators, allow financial flows linked to unauthorised betting to be interrupted and expand cooperation between regulators and the financial system.

The two developments create distinct regulatory issues for the sector. Brazil is tightening enforcement against businesses operating outside its licensing system while the government considers whether online casino products already included within that regulated framework should continue to be permitted.