Brazil’s online gambling sector has been thrown into uncertainty following President Luiz Inácio Lula da Silva’s decision to prematurely terminate the Brazil Bets Law, which regulates the country’s betting market.
On Friday, 25 September, Lula signed a “presidential measure” providing for the complete repeal of the Brazil Bets Law. The federal legislation has regulated Brazil’s online gambling market since 1 January 2025.
The president’s decision took effect immediately. Licensed operators are no longer allowed to accept new deposits and must begin winding down their operations in the Brazilian market.
According to SBC Noticias Brazil, players have until 11:59pm on 5 October to withdraw their remaining funds. Licensed betting websites and apps must cease operations on 6 October, just two days after the first round of Brazil’s presidential election.
Lula announced the decision during an event in São Paulo, where the government presented a programme aimed at reducing household debt.
Representatives of the Workers’ Party said the betting industry was increasing financial pressure on Brazilian families, particularly those receiving government support through programmes such as Bolsa Família.
The Workers’ Party government has linked the Brazil Bets Law to rising household debt. According to its estimates, around 1.8 million Brazilians faced debt-related problems last year. Vulnerable families dependent on welfare payments were reportedly affected the most. During Lula’s election campaign, the phrase “Bets, Banks & Billionaires” was used to refer to forces opposing the Workers’ Party’s reform agenda.
Meanwhile, SBC Noticias Brazil reports that the Workers’ Party government has drafted a bill that would introduce criminal penalties for operating or facilitating fixed-odds betting. The proposed legislation would impose prison sentences of four to six years for accepting, organising or intermediating bets, while advertising, promoting betting or recruiting bettors could carry a sentence of two to four years.
“I took the decision to take a tough, drastic and necessary measure. It’s like a tumour: either we remove it or the tumour kills us,” Lula said.
“It’s become uncontrolled gambling. We’ve been talking about betting for a long time now — since the beginning of the government — and the certainty that there is something else happening in society beyond indebtedness grows stronger in our minds.”
Finance Minister Dario Durigan said users would be able to withdraw their funds from the platforms until the established deadline. Customers who fail to recover their money by that date will receive refunds through the operators’ banking partners between 9 and 14 October. In addition, all betting-related advertising and sponsorship materials must be removed by 5 October.
The future of the ban will depend on Congress. The provisional measure takes effect immediately, but without parliamentary approval it can remain in force for a maximum of 120 days. The measure initially remains valid for 60 days and is automatically extended for another 60 days if neither chamber of Congress completes a vote on the document during that period.
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