Brazil's president Luiz Inácio Lula da Silva will send a provisional measure to Congress this week tightening betting regulation. CNN Brazil reports the government is considering expanded advertising restrictions and a full ban on online casinos, while sports betting would remain legal.
The provisional measure format allows immediate implementation — less than a month before elections. The Civil Office is drafting the text, and many see it as part of Lula's re-election campaign. The president is trying to capitalise on criticism of the industry tied to rising household debt from gambling.
Lula wants to bypass the full legislative process because passing a bill through Congress would dilute its political impact before the vote. There is resistance inside the government: the Finance Ministry, responsible for betting and online gaming regulation, understands the sector's economic importance. Finance Minister Dario Durigan is trying to convince Lula of the value of regulated activity for the budget. The president has said he would ban betting if he had his way.
Research by the Workers' Party shows three out of four Brazilians oppose gambling establishments. Lula leans on this in his rhetoric. But he does not mention tax revenue. In 2025 the legal sector brought in almost 10 billion reais ($1.97 billion). In the first seven months of this year the budget received 8.7 billion reais. The Federal Revenue Service forecasts 16 billion reais from the sector in 2026.
Companies paid over 2.5 billion reais for licences after regulation. Shutting down the industry would trigger lawsuits for refunds and compensation. Betting revenue is already embedded in budget laws that set federal spending priorities. Another problem is the illegal market, which accounts for almost half the segment. The government has not managed to bring it under control.
