Brazilian President Luiz Inacio Lula da Silva confirmed plans on 25 September 2026 to impose an outright ban on regulated online sports betting and online casinos by completely repealing the national Bets Law. The decision was communicated during a meeting of economic ministers in Sao Paulo just nine days before the first round of the national presidential election. Under the proposed measures, the federal administration will submit an urgent bill to the National Congress introducing criminal penalties of four to six years of imprisonment for organizing or promoting unauthorized sports betting, alongside prison terms of two to four years for financial institutions facilitating related transactions.
The abrupt policy reversal follows warnings from the Ministry of Finance and social welfare agencies regarding escalating household indebtedness. Government officials estimate that approximately 1.8 million Brazilians have fallen into debt since the regulated market launched, disproportionately affecting vulnerable families receiving Bolsa Familia benefits. Lula’s planned prohibition has triggered strong pushback from industry associations, including the National Association of Games and Lotteries (ANJL), as well as prominent Brazilian football clubs such as Corinthians, Flamengo, and Palmeiras. While club officials warned that revoking sponsorships would severely destabilize their finances, the president rejected their appeal, describing football’s dependence on gambling revenue as harmful.
For licensed operators, platform vendors, and gaming providers, the abrupt dismantling of the Brazilian framework poses severe commercial disruption. Regulated operators contributed 8.7 billion Brazilian reals (approximately 1.2 billion British pounds) to the treasury between January and July 2026, while nearly 90 companies previously paid licence fees of 30 million reals each. Legal analysts and trade bodies warn that an outright prohibition will fail to curb player demand, instead driving domestic betting volume directly back into the black and grey markets, depriving the state of fiscal revenue and triggering extensive legal compensation claims from international operators.
Primary source: https://sbcnews.co.uk/sportsbook/2026/09/25/brazil-online-betting-ban/