Brazil president preparing provisional measure to tighten betting rules, with online casino games in the crosshairs

Brazil’s President Luiz Inácio Lula da Silva is expected to send a provisional measure to Congress this week to tighten betting regulations, with CNN Brazil reporting that the government is considering broader ad restrictions and a ban on online casino games. For PSPs and operators, the important part is not the rhetoric; it’s that a provisional measure can take effect immediately, before the election cycle has even finished warming up.

1. According to CNN Brazil, the draft would keep sports betting but expand restrictions on betting advertising and ban online casino games. That would leave a narrower legal scope for the sector than the current framework, and it would do so through a provisional measure rather than a full bill.
2. The timing matters. Using a provisional measure means the restrictions can take effect immediately, less than a month before the elections. In other words, this is not being sent into Congress as a long legislative debate; it is being pushed as something that can move fast and have immediate political effect.
3. The text is reportedly being prepared by the Civil House. Some observers in Brazil believe the move serves an electoral purpose, with Lula riding criticism of the sector as betting comes under pressure over claims that families are falling into debt because of gambling.
4. There is pushback inside the government. The Ministry of Finance, which is responsible for regulating sports betting and online gaming, is resisting more drastic measures and argues that the sector matters for public finances. Finance Minister Dario Durigan is said to be trying to convince Lula that a well-regulated activity is important for tax revenue.
5. The numbers are doing a lot of the arguing here. Brazil collected almost BRL10 billion ($1.97 billion) in tax revenue from the licensed sector in 2025, and in the first seven months of this year BRL8.7 billion was delivered to public coffers. The Federal Revenue Service estimates the sector should reach BRL16 billion in revenue during 2026. Companies have also paid over BRL2.5 billion for licences since regulation began, which means any shutdown or sharp restriction would not just affect future revenue, but also trigger litigation over licence fees and investment costs.

One more practical point for payments teams: betting revenue is already included in Brazil’s Annual Budget Law and the Budget Guidelines Law. That makes this more than a symbolic political fight; it directly touches state revenue planning and the operating assumptions behind regulated wagering in the country.