With Luiz Inácio Lula da Silva’s recent re-election, the betting industry is gearing up to engage once again with the Brazilian government over the reinstatement of licenses for betting operations. Lula's Provisional Measure 1,394, enacted last month, has effectively revoked all existing betting licenses as of Sunday, and the first step will involve efforts to recover these authorizations.
The National Association of Games and Lotteries (ANJL) released a statement acknowledging Lula’s victory and expressing its readiness to recommence discussions with the government. Despite Lula's previous criticisms of the betting sector, the ANJL is optimistic about fostering a democratic and transparent dialogue that could lead to a resolution that revives the market.
The ANJL firmly believes that engaging in discussions could yield a favorable outcome for the reinstatement of betting operations. The organization emphasizes that addressing illegal operators should be the primary focus moving forward.
The regulated betting industry was taken aback by the implementation of Provisional Measure 1,394, which has banned all betting activities in Brazil. This measure is widely viewed as a strategic decision to garner additional votes in the upcoming elections, and it has abruptly halted the licensed betting sector just 22 months after it was officially regulated.
In 2025, the sector had contributed BRL9.95 billion (approximately $1.8 billion) to Brazil’s public finances. This year, prior to the ban, the Federal Revenue Service recorded BRL11.1 billion in revenue from games and gambling activities. For the entirety of 2026, projections had anticipated a total revenue of around BRL15 billion, but with the ban now in place, the government has effectively closed the door on this significant resource influx.
The prohibition has simultaneously opened avenues for the illegal gambling market, which has begun attracting bettors to unregulated, clandestine websites. These platforms lack player protections, are accessible to minors, do not remit taxes, and provide no guarantees for users to withdraw any winnings.
In a note from ANJL, the association extended congratulations to President Lula on his re-election. "As an advocate for fixed-odds betting companies in Brazil, we hope that dialogue will be re-established and that the principles of democratic governance will be upheld," the statement read. The ANJL reaffirmed its commitment to social welfare and stated its intention to collaborate with both the National Congress and the Executive Branch to enhance the regulated market while combating the illegal betting that has flourished during the ban on licensed operators.
