Bill No. 1,808, which bans sports betting and online gambling in Brazil, was introduced in the Chamber of Deputies on Tuesday.
The bill has been signed by 65 members of the Worker’s Party (PT, in the Portuguese acronym), which is President Lula’s party, as well as two members from PSOL (Socialism and Liberty Party) and one from Rede (Sustainability Network). They both are part of the government’s support base. The measure goes against the campaign rhetoric of the president, who is running for re-election and has chosen to criticise the betting operators — known as “bets” — claiming that their activities are responsible for the population’s debt.
The bill prohibits the operation, offering, promotion, and facilitation of fixed-odds betting throughout Brazil and repeals the provisions of Statutes 13,756 (which legalized fixed-odds betting in Brazil) and 14,790 (which regulated sports betting and online gaming).
The explanatory memorandum for the bill, sponsored by Federal Deputy Pedro Uczai (PT, state of Santa Catarina) and co-sponsored by 67 other lawmakers, erroneously states that “the country’s concrete experience has shown that betting has ceased to be presented as mere digital entertainment and has instead become a permanent mechanism for capturing popular income, intensifying household debt, causing mental illness, and disrupting household budgets.
“The problem has gone beyond the individual gambler and now affects household spending, retail activity, the financial stability of households, and the state’s very ability to protect vulnerable groups.”
Lula’s growing opposition to gambling
This justification goes against President Lula’s baseless rhetoric, as he seeks to win over the evangelical and Christian electorate, and has begun attacking betting companies to appeal to this significant segment of voters. The same president who signed the Sports Betting Bill into law in 2023 with an eye toward increasing tax revenue is now attacking the industry with an eye toward votes, forgetting that his administration collected nearly BRL 10 billion (USD 2 billion) in taxes from betting in 2025.
Both Lula and the sponsors of the bill mistakenly claim that online gambling has become the main cause of debt among Brazilian households, citing studies by little-known organisations with strong ties to the retail industry that defend the interests of retailers—organisations that also claim sales have declined because customers have shifted their spending from food to gambling.
The bill awaits the appointment of a rapporteur and a decision on how it will proceed in the Chamber of Deputies. If the bill is approved, it will create legal chaos, since currently more than 80 companies operate approximately 180 brands after paying a concession fee of BRL 30 million ($6 million) and making a security deposit of BRL 5 million. Today, they serve approximately 25 million Brazilians registered with online betting sites. These will certainly end up on the black market, thanks to Lula’s remarks and the bill that is about to be introduced in the House.
Study contradicts the argument for banning sports betting in Brazil
A study by LCA Consultoria Econômica (LCA Economic Consulting) on the indebtedness and default rates of Brazilian households directly contradicts the misleading rhetoric of President Lula and the lawmakers who introduced Bill 1,808.
The survey, which was also released on Tuesday, indicates that spending on gambling accounts for just 0.46% of household consumption, according to data obtained by LCA from the Secretariat of Prizes and Gambling (SPA).
According to the same source, LCA’s study indicates that the average Brazilian spent BRL 122 on sports betting and online gaming in 2025—roughly 3.3% of their income—while also noting that indebted households allocate 30% of their income to debt service, highlighting the significant burden of interest payments.
LCA says that the expansion of short-term credit—driven by new financial technologies that are advancing faster than the population’s level of financial literacy and education—combined with rising interest rates, are the most direct and decisive factors behind the increase in delinquency. According to LCA, the cost of debt puts pressure on household budgets, and high credit card interest rates are the main culprit behind the rise in household debt and default rates.
ANJL releases its response to the bill
In a statement to Poder360, the National Association of Games and Lotteries (ANJL) points out that banning the legal market in Brazil poses a huge risk and that, rather than eliminating gambling, the measure will encourage and strengthen the underground market, which currently accounts for 50% of the total. Below is the full text of ANJL’s statement:
“The National Association of Games and Lotteries considers any proposal aimed at banning the legal and regulated betting market to be a major risk.
“The federal government established regulations for the sector with the aim of bringing an activity that had previously been unregulated into a controlled environment. The model establishes mechanisms for oversight, transparency, and consumer protection that do not exist in the illegal market.
“In this context, any measures that weaken the regulatory framework do not eliminate the activity, but may encourage its migration to unauthorised platforms, where there is less capacity for monitoring and user protection. Strengthening both the proposed regulations and monitoring tools is the most appropriate way to mitigate risks, including those associated with compulsive behavior—while also enhancing consumer protection.
“ANJL reaffirms its commitment to the industry’s responsible development, to foster an informed data-based public debate, and to consolidate the regulatory advances the country has already established.”
Original article: https://igamingbusiness.com/legal-compliance/legal/lula-lawmakers-introduce-bill-banning-igaming-brazil/
