With Luiz Inácio Lula da Silva's re-election, the betting industry is preparing to engage with the Brazilian government regarding the recent ban on betting activities. Last month, Lula introduced Provisional Measure 1,394, which annulled all betting licenses effective Sunday; the immediate goal is to restore those authorizations.
The National Association of Games and Lotteries (ANJL) issued a statement acknowledging Lula's victory and expressing its willingness to reopen discussions. Despite Lula's past criticisms of the gambling sector, the ANJL is hopeful for a constructive and transparent dialogue that might pave the way for legislation to revive the market.
The ANJL believes that engaging in conversations with the government can yield favorable results for the reinstatement of betting operations. They argue that focusing on eliminating illegal operators is crucial moving forward.
The regulated betting market was taken aback by the implementation of Provisional Measure 1,394 a month ago, a decision that halted all licensed betting activities nationwide. Many observers see the measure as a maneuver to garner voter support ahead of the upcoming elections, leading to the cessation of legal betting operations just 22 months after their introduction.
In 2025, legalized betting generated BRL9.95 billion (approximately $1.8 billion) for the government. By the time of the ban, the Federal Revenue Service had recorded BRL11.1 billion in revenues from games and bets. The projection for 2026 was around BRL15 billion; however, the ban has curtailed this expected revenue stream.
The prohibition also has inadvertently bolstered the illegal betting market, which is now actively recruiting players to unregulated websites. These platforms lack player protections, allow minors to participate, do not facilitate tax contributions, and raise questions about whether players can successfully withdraw their winnings.
In a note, the ANJL stated, "The National Association of Games and Lotteries (ANJL) congratulates President Luiz Inácio Lula da Silva on his re-election. As representatives of fixed-odds betting companies in Brazil, we hope that dialogue will be restored and democratic governance will be upheld." The ANJL reiterated its commitment to promoting social well-being and expressed its readiness to collaborate with the National Congress and the Executive Branch to enhance the regulated market and combat illegal gambling, which has unfortunately proliferated during the ban on legitimate operators.
