Brazil’s government is preparing a provisional measure that would ban online casino games while retaining regulated sports betting, according to Reuters.
President Luiz Inácio Lula da Silva is expected to approve the final text before the first round of Brazil’s general election on October 4 , three sources familiar with discussions within the presidential office told the news agency.
No measure has been published and discussions between Lula and government ministers remain in progress. Sports sponsorship agreements would not be covered by the proposed prohibition, according to two of the sources.
Lula said earlier this week that the government had held three internal meetings and consulted civil society. He added that his personal position was to end betting, while acknowledging the need for the government to act responsibly.
Brazil’s federal licences cover both fixed-odds sports betting and permitted online casino games. Online casino accounts for approximately 75% of operators’ revenue, according to the National Association of Gaming and Lotteries.
Reuters reported that Brazil currently has 188 authorised betting operations. Treasury figures show that licensing fees and taxes generated almost BRL10bn (US$1.95bn) for the government during 2025.
The association has warned that restricting activities already covered by paid licences could expose the government to reimbursement and compensation claims.
“Based on a preliminary estimate, compensation liabilities could reach 120 billion reais,” legal adviser Bernardo Cavalcanti Freire said. The estimate is equivalent to approximately US$23.4bn.
Brazil’s Finance Ministry estimates that consumers spend around BRL60bn (US$11.7bn) annually on betting. Lula has linked the proposed intervention to concerns about household debt and the diversion of income from essential spending.
The initiative is separate from Bill PL 5.280/2026, introduced by federal deputy Weliton Prado, which proposes banning all fixed-odds betting and imposing prison sentences of up to 16 years.
A provisional measure would take effect upon publication but require subsequent approval from Brazil’s Congress to remain in force.
Tags: iGaming Brazil, Sports Betting Brazil, Online Casino Ban
