Lula government prepares a provisional measure to restrict sports betting and online casinos in Brazil

Brazil’s government is drafting a Medida Provisória (MP, provisional measure) to restrict betting operators, with the text expected to be sent to Congress in the week that began on Sunday, 6/9. For high-risk payment providers, the key point is simple: this is not a broad policy speech, it is an attempt to change market access quickly, and the draft could hit online casinos as well as sports betting brands.

1. According to sources in the Palácio do Planalto, the MP is being prepared by the Lula administration and is intended to target the betting sector, known locally as bets. The government wants to submit the text to the National Congress during the week that started on Sunday, 6/9.
2. The move is being driven through a provisional measure precisely because it takes effect immediately. Internally, the government считает that a regular bill would face resistance in Congress and would not be approved before the elections. The next concentrated legislative week is only in October, while the current priority in Congress is the PEC (constitutional amendment proposal) to end the 6×1 work schedule.
3. People close to the president say the draft is still being finalized inside the Casa Civil. The government has not ruled out banning entire segments of the sector, with online casinos and certain game formats offered by sports betting operators among the options on the table. Another wing of the government wants narrower action aimed at the illegal betting market, while the Ministry of Finance, which led regulation of the sector in recent years, is resisting harsher measures.
4. The political backdrop matters here. Lula is facing a drop in approval less than 30 days before the elections, and internal PT polling reportedly shows that three in four Brazilians oppose betting, with even higher rejection among women and young people. That is the audience the campaign cares about, which explains the urgency.
5. The government’s internal view is that rising household debt is directly linked to the expansion of betting and is hurting approval of what it calls Lula 3. Officials also say there has been an increase in problem gambling across the country. In a meeting at the Palácio do Planalto last week, Lula complained that measures such as expanding income tax exemption and discounts on electricity bills and gas cylinders did not improve household finances as expected because of debt generated by betting.

For PSPs, acquirers, and banks supporting Brazil-facing gambling traffic, the practical question is whether the MP stays focused on illegal operators or moves into a broader restriction of licensed sports betting and online casino activity. The source says that decision is still being negotiated inside the government.