With Luiz Inácio Lula da Silva's recent re-election, the betting industry in Brazil is gearing up to re-engage with the government regarding the ban on betting activities.
Last month, Lula announced Provisional Measure 1,394, which rescinded all existing betting licenses effective immediately. One of the first measures from this administration will be efforts to restore these authorizations.
The National Association of Games and Lotteries (ANJL) acknowledged Lula's victory and expressed its willingness to resume dialogue with government officials. Despite previous criticisms from Lula regarding the sector, the ANJL remains hopeful for a constructive and transparent discussion that could potentially revive the betting market in Brazil.
The ANJL believes these talks could yield beneficial outcomes leading to the reintroduction of regulated betting. The association argues that combatting illegal betting operators should be prioritized in policy discussions.
The recently enacted Provisional Measure 1,394 caught the regulated betting market off guard, as it effectively prohibited all betting in Brazil just 22 months after the sector had been officially regulated. This measure is perceived by many as politically motivated, intended to garner votes ahead of upcoming elections.
In 2025, the betting sector generated BRL9.95 billion ($1.8 billion) for the government. Up until the ban was implemented, the Federal Revenue Service had collected BRL11.1 billion from gaming activities this year. Projections for total revenue in 2026 were around BRL15 billion, but the recent ban has nixed this expected influx of public resources.
Concurrently, the ban has widened opportunities for illegal betting operators, many of whom are now actively attracting players to unauthorized websites. These sites pose significant risks to consumers, as they lack player protections, allow underage access, and do not facilitate proper tax payments. Moreover, there is no assurance that players will be able to cash out any winnings they might incur.
In a statement, the ANJL congratulated President Lula on his re-election, stating, "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 ANJL reiterated its commitment to advancing social welfare and expressed its readiness to collaborate with the National Congress and the Executive Branch to enhance market regulations and counter illegal betting, which has unfortunately proliferated during the legal sector's absence.
