With Luiz Inácio Lula da Silva re-elected as President, the betting sector is gearing up to engage with the Brazilian government regarding the ban on betting. Last month, Lula announced Provisional Measure 1,394, which invalidated all betting licenses effective immediately. A key priority for the sector now is to seek the restoration of these authorizations.
The National Association of Games and Lotteries (ANJL) has acknowledged Lula's victory and expressed its readiness to re-establish communication. Despite Lula's past criticisms of the betting industry, the ANJL remains hopeful for a constructive and transparent dialogue with the government, potentially paving the way for revitalizing the betting market.
The ANJL believes that discussions could yield favorable outcomes to reinstate betting activities and emphasizes a focus on combating illegal operators as a necessary approach. The licensed betting sector was taken aback when Provisional Measure 1,394 was enacted a month ago, abruptly instituting the ban only 22 months after regulation had been established.
In 2025, the betting sector had contributed approximately BRL9.95 billion ($1.8 billion) to public finances. Up until the implementation of the ban this year, the Federal Revenue Service had already collected BRL11.1 billion in revenue from gaming activities. Projections indicated that the total revenue could reach around BRL15 billion for the full year of 2026. However, with the ban now in place, the government has effectively halted this anticipated financial influx.
At the same time, the prohibition has provided an opportunity for the illegal betting market to thrive, as clandestine websites lured bettors away from regulated platforms. These unregulated sites lack player protections, permit access to minors, avoid tax obligations, and offer no guarantees for the payout of winnings.
The ANJL commented, "The National Association of Games and Lotteries congratulates President Luiz Inácio Lula da Silva on his re-election. As a representative of fixed-odds betting companies in Brazil, the association hopes that dialogue will be restored and the democratic rule of law will prevail."
The organization reiterated its commitment to promoting social welfare and expressed its intent to work collaboratively with the National Congress and the Executive Branch to enhance the regulated market and address the challenges posed by illegal betting, which has unfortunately surged during the ban on legal operators.
