Brazil’s betting ban faces pressure as lawmakers consider carving out sports betting

Brazil’s provisional ban on fixed-odds betting is now running into political resistance in Congress, where lawmakers are weighing whether sports betting could return while online casinos stay blocked. For PSPs and operators, the key point is simple: nothing has changed yet, but the legal architecture is now being contested in public, and that matters for settlement, licensing, and merchant continuity.

1. President Luiz Inácio Lula da Silva signed a provisional measure on September 25, 2026, suspending fixed-odds betting operations across Brazil. The measure covers both sports betting and online games, and its restrictions also apply to relevant betting services offered by overseas operators to people located in Brazil.
2. Lawmakers from the Centrão, the centrist and center-right bloc, are reportedly seeking amendments that would separate sports betting from online casino games. Their preferred model would let licensed operators potentially resume betting on sporting events while keeping online casino products prohibited.
3. The debate has become part of a wider political and economic discussion ahead of Brazil’s presidential runoff election on October 25. In practice, that means the issue is not just regulatory housekeeping; it is being treated as part of the broader fight over consumer protection, market oversight, and how much of the regulated gambling market should survive.
4. Deputy Júlio Arcoverde (PP-PI) has publicly backed a sports-only approach, saying: “There has to be a middle ground. President Lula made a very hasty decision to win votes.” That is his political reading of the move, not a formal finding about the government’s intent.
5. The government began implementing the measure in early October, and previously authorized betting platforms were required to cease operations. Proposed amendments have not restored any services, and the industry remains subject to the existing restrictions until the legal position changes through the relevant legislative process.

The thing high-risk payment companies care about here is timing. Even if Congress ultimately carves out sports betting, the current restriction remains in force unless it is amended, rejected, suspended, or otherwise stops applying under the legal process. For operators and their PSPs, that means Brazil is still a live jurisdictional risk, not a solved one.