Following Luiz Inácio Lula da Silva's re-election, the betting industry in Brazil is gearing up for renewed discussions with the government regarding the existing ban on betting activities.
Last month, Lula announced Provisional Measure 1,394, which effectively revoked all betting licenses as of Sunday, marking a significant shift for the sector as its first priority is to regain these authorizations.
The National Association of Games and Lotteries (ANJL) has published a statement acknowledging Lula's victory and expressing its willingness to engage in dialogue with the government. Although Lula has previously criticized the betting sector, the ANJL remains optimistic about a democratic and transparent debate that could lead to a resolution encouraging the market's revival.
In the organization’s view, effective measures against illegal operators should be the correct approach moving forward.
The betting industry was taken aback last month when Provisional Measure 1,394 was enacted, which banned betting just 22 months after the market was regulated. This move, perceived by many as a strategy to garner additional votes ahead of the elections, effectively disrupted a sector that had shown promise.
In 2025, the regulated betting market contributed BRL9.95 billion ($1.8 billion) to the Brazilian treasury, and up until the ban this year, the Federal Revenue Service collected BRL11.1 billion in taxes from various games and betting activities. Prior to the ban, projections were estimating total revenue of around BRL15 billion for the entirety of 2026. However, the new restrictions have significantly derailed these anticipated contributions to public finances.
This ban also opens avenues for the illegal betting market to flourish, as operators have turned to clandestine websites to attract bettors. These unregulated platforms present numerous risks, as there is no age verification, lack of player protections, and no assurance that users can withdraw any winnings.
In a statement, ANJL said, “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 commitment to promoting social welfare and offered to collaborate with both the National Congress and the Executive Branch, aiming to enhance the regulated market and tackle the expansion of illegal betting that flourished during the ban on licensed operators.
