Brazil Considers Snuffing Out Online Betting a Year After Legalization

At the beginning of 2025, Brazil officially launched its online betting and iGaming framework, marking a new era for gambling in the country. However, a little over a year later, the governing party considers putting a stop to it.

Brazil Could Put an End to Its Online Gaming Framework

Coming shortly after President Luiz Inácio Lula da Silva stated that the online betting platforms that his government helped legalize should be banned, PT deputy Pedro Uczai submitted a bill to end the online gaming sector. The measure in question is Bill PL-1808/2026.

Uczai’s bill proposes overturning the digital gambling legalization that came into effect in January 2025, banning all kinds of online betting, as well as gambling sponsorships, the advertising of such products, and any online gambling-related transactions. Effectively, the bill would return Brazil to its pre-online gaming era.

In addition to that, the proposed law would see authorities persecute any violators of the prohibition.

The bill is currently backed by 68 members of the governing party.

Uczai Expressed Concern About Gambling Harm

The reasoning behind Bill PL-1808/2026 is that online gambling has allegedly exacerbated Brazil’s problem gambling issues. Uczai cited rising household debt, financial instability and mental health issues as key highlights of the proliferation of online betting.

Uczai emphasized that if betting causes this harm, there is no reason not to get rid of it. He added that, alternatively, the state could pursue a much stricter regulatory regime if it determines that betting serves any purpose.

While President Luiz Inácio Lula da Silva previously suggested that online betting might have been a mistake, the current bill has not been signed by him or any other senior member of the government. As a result, Bill PL-1808/2026 is currently only a parliamentary initiative.

Experts predict that Brazil will not really take a U-turn on its online gambling stance, but could tighten its regulation of online gambling. Still, if Bill PL-1808/2026 does end up advancing, that would pin its supporters against many institutions, such as the Receita Federal, which have backed the launch of regulated online betting. Sports teams, which would risk losing their sponsorships, are also likely to reject the proposed ban.