With the re-election of Luiz Inácio Lula da Silva, the betting industry is gearing up to engage once more with the Brazilian government regarding the ban on betting. Last month, Lula enacted Provisional Measure 1,394, which revoked all betting licenses effective Sunday. The initial priority for the sector is to regain these authorizations.
The National Association of Games and Lotteries (ANJL) publicly recognized Lula's victory, expressing its readiness to resume discussions. Despite Lula's past criticisms of the betting sector, the ANJL remains optimistic for a constructive dialogue with the administration. They believe this could pave the way for a solution that rejuvenates the betting market.
The ANJL argues that productive talks could yield favorable outcomes, emphasizing that the focus should be on eliminating illegal operators rather than restricting the regulated sector. The licensed market was taken aback last month by the rapid implementation of Provisional Measure 1,394, which effectively banned betting in Brazil. This decision is perceived as a move to garner political support ahead of impending elections and abruptly disrupted the licensed betting landscape just 22 months post-regulation.
In 2025, the betting sector contributed BRL9.95 billion ($1.8 billion) to government coffers, and this year, prior to the ban, the Federal Revenue Service reported BRL11.1 billion in tax revenue from games and bets. Projections had indicated potential total revenue of around BRL15 billion for all of 2026, but the ban has now curtailed this financial influx into public funding.
Additionally, the ban has inadvertently bolstered the illegal betting market, as many players have turned to unregulated websites. These sites lack player protection measures, allowing minors to participate and operating outside of any tax framework, also leaving bettors uncertain about securing their winnings.
The ANJL emphasized its commitment to social welfare and announced it is ready to collaborate with both the National Congress and the Executive Branch. The association stated, "The National Association of Games and Lotteries (ANJL) 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 ANJL reiterated its goal to enhance the regulated market and eradicating illegal betting, which has flourished in the absence of legalized operations.
