Brazil’s federal government is preparing to tighten rules for its regulated betting market and one of the measures is a ban on online casino games. Sources close to President Luiz Inácio Lula da Silva say the government could send a provisional measure to Congress this week, taking effect less than a month before the elections. Unlike a bill, a provisional measure takes effect on publication. Congress must convert it into law within 60 days, extendable once by a further 60, or it lapses.

Betting is under heavy political pressure lately. Polls cited by the Workers’ Party show about 75% of Brazilians are against betting operations. The opposition is especially strong among women and young people, which are the two groups Lula counts on in his re-election campaign. Still, the government’s betting regulator does not agree. Instead of new restrictions on legal operators, the regulator wants stronger action against illegal, underground platforms.

Why Lula Is Using a Provisional Measure

The main proposal being discussed is a provisional measure that would introduce more restrictions on Brazil’s regulated betting operators. Using this route allows the government to move much faster than the usual legislative process. A standard bill has to move its way through Congress before becoming law, but a provisional measure starts applying immediately.

A ban on online casino games is among the options, with only sports betting retained. Lula backed the idea in an International Women’s Day speech, citing household debt and gambling addiction. The named target is Jogo do Tigrinho, a mobile slot game that has become the symbol of the debate.

But not everyone in the government is on the same page. The Secretariat of Prizes and Betting, part of the Ministry of Finance, prefers lighter measures aimed at shutting down illegal platforms. The SPA has overseen licensing since the market opened on January 1, 2025 under Law 14,790/2023, and wants enforcement aimed at clandestine platforms rather than licensed ones.

That split between the government and its regulator could turn into a major issue for the betting industry. Operators work directly with the Secretariat of Prizes and Betting, but the political decisions come from elsewhere. If the government pushes ahead with new restrictions despite the regulator’s stance, licensed operators could end up uncertain about where the policy is headed.

If Congress does not convert it within 120 days at most, it lapses. A ban could therefore take effect immediately on a market barely 20 months old, then disappear.

The uncertainty complicates operator planning and the revenue the government is counting on. Receita Federal has forecast R$13 billion from gambling in 2026, money tied to social programmes.

Industry observers read the timing as electoral, with the measure landing weeks before the vote and opposition strongest among women and young people, two groups central to Lula’s campaign. The government points to household debt and gambling addiction.

Bill 5.317/2026 Proposes National Betting Limits

Besides the government’s proposal, there is another bill in the works that would strictly limit how much anyone could bet. Bill 5.317/2026, from deputies Eduardo da Fonte and Lula da Fonte, both of the PP party in Pernambuco and unrelated to the president, would establish a Public Policy on Responsible Gaming.

The bill would cap individual betting at R$100 a day, about $20, and R$500 a week, about $98. Those limits would not just apply separately to each licensed betting platform, they would cover the total a person bets across all licensed platforms, tracked through their CPF tax number.

So, operators would need systems that stop customers from going over the limit. That means licensed platforms would have to monitor betting activity across the entire market, not just their own systems.

The bill also creates four risk categories for customers: low, moderate, high, and critical. Bettors would be classified based on how often they bet, how much money they spend, efforts to go over the limits, and whether they use multiple platforms at once.

Another big change is a National Responsible Gaming Registry. This registry would collect information on denied betting attempts, risk status, preventive actions, alerts, and blocks, all linked to a bettor’s CPF.

Licensed operators would have to check this registry in real time during several moments of a customer’s journey before registration, login, deposits, placing bets, withdrawals, and prize payments.

Advertising would get stricter too. Betting ads on free-to-air TV would only be allowed from 10 pm to 6 am. Social media ads would have to include warnings about addiction and make clear that betting is not an investment.

Brazil is weighing two approaches, one removing online casino gaming and the other keeping it under national limits and a central registry. Legal experts note that any change to Law 14,790/2023 requires congressional approval, so a ban by executive action alone would not survive without it.