In the wake of Luiz Inácio Lula da Silva's re-election, the betting industry is gearing up to engage with the Brazilian government regarding the recently reinstated ban on betting. Provisional Measure 1,394, which Lula announced last month, eliminated all betting licenses starting Sunday. The immediate aim for industry advocates is to regain those authorizations.
The National Association of Games and Lotteries (ANJL) released a statement acknowledging Lula's victory and expressing its readiness to renew discussions with the government. Despite previous criticisms from Lula toward the betting sector, the ANJL is optimistic about achieving a democratic and transparent dialogue that could lead to the revitalization of the market.
The organization believes that constructive discussions could pave the way for the return of legal betting. They argue that the focus should be on dismantling illegal operations, which have proliferated in the absence of a regulated market. The enactment of Provisional Measure 1,394 a month ago, which banned betting in Brazil, took many in the regulated market by surprise. This decision has halted the licensed betting sector just 22 months after its establishment.
In 2025, the betting sector contributed BRL9.95 billion (approximately $1.8 billion) to the national treasury. Leading up to the ban, the Federal Revenue Service had collected BRL11.1 billion from games and bets this year alone. Analysts had projected that total revenue for 2026 could reach approximately BRL15 billion; however, the ban has effectively shut the door on these anticipated funds, restricting growth opportunities for the sector.
Additionally, the ban has inadvertently fostered a booming illegal market, which is now enlisting bettors on unregulated websites. These platforms lack safeguards for players, are accessible to minors, evade tax obligations, and offer no guarantee that winnings can be cashed out.
In a statement, the ANJL congratulated President Lula on his re-election and emphasized its desire for constructive engagement with the government. "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," it stated. The ANJL reaffirmed its commitment to enhancing the regulated market and combating illegal betting, which has unfortunately surged during the ban on licensed operators.
