Following President Luiz Inácio Lula da Silva's recent re-election, discussions surrounding the controversial betting ban in Brazil are set to resume. The betting industry is preparing to engage with the Brazilian government on this pressing issue.
Last month, Lula announced Provisional Measure 1,394, which revoked all betting licenses starting Sunday. The immediate goal for industry representatives is to regain their authorizations and reopen dialogue.
The National Association of Games and Lotteries (ANJL) expressed its acknowledgment of Lula's electoral victory and its willingness to reconnect for discussions aimed at finding a viable resolution. Despite Lula's past criticisms of the betting sector, the ANJL advocates for a transparent and democratic conversation with the government, hoping to find a pathway that could rejuvenate the market.
The ANJL views these discussions as pivotal, believing they could lead to a favorable outcome for reinstating betting operations. The association also underscores the importance of addressing illegal gambling as a fundamental part of this conversation.
The recent introduction of Provisional Measure 1,394 took the regulated betting market by surprise, implementing a nationwide ban just 22 months after its regulation. This measure is perceived as a political maneuver to secure votes ahead of future elections and has already halted the licensed betting sector’s contributions to the economy.
In 2025, the legal betting sector contributed BRL9.95 billion ($1.8 billion) to government revenues. Up to the implementation of the ban this year, the Federal Revenue Service had collected BRL11.1 billion from gaming and betting operations. The sector had anticipated generating around BRL15 billion in total revenue for 2026. However, this new ban restricts access to these funds.
Simultaneously, the prohibition has paved the way for illegal betting platforms to thrive, attracting bettors without regulatory oversight. These unlicensed sites provide no player protections, allow minors access, and neither collect taxes nor guarantee any winnings.
In a statement, the ANJL congratulated President Lula on his re-election. They reiterated their hopes for renewed dialogue and the need for democratic governance in the industry. "As representatives of fixed-odds betting companies in Brazil, we look forward to working with the National Congress and the Executive Branch to enhance the regulated market and combat illegal betting, which regrettably flourished during the ban on legitimate operators," the association stated.
