Brazil’s Lula Is Preparing New Gambling Restrictions, Including a Possible Ban on Online Casino Games

Brazilian President Luiz Inácio Lula da Silva’s government is reportedly preparing a Provisional Measure that could tighten restrictions on betting operators, with online casino games among the segments under threat. For PSPs and acquirers serving Brazil, the detail that matters is simple: this could move fast, and it could affect both advertising and product scope before the legislative process catches up.

1. According to CNN Brazil, the government is weighing tougher rules on betting advertising and may go as far as banning online casino games. The proposal is being led by the Chief of Staff’s Office and is designed to take effect immediately, using a Provisional Measure rather than waiting for a bill to move through the National Congress.
2. The same report says the government is considering severe sanctions, including a complete ban on specific categories such as online casinos and certain features offered by sports betting platforms. The plan is being revised with a view to submitting it to lawmakers next week, which puts regulatory timing and election timing on the same schedule.
3. Political pressure is clearly part of the picture. Internal polling by the Workers’ Party reportedly shows that three in four Brazilians oppose gambling platforms, with opposition even stronger among young people and women, two groups that matter for Lula’s re-election campaign. The polling, cited by journalist Lauro Jardim in his Sunday column for O Globo, also reportedly shows Lula’s approval rating at its lowest level in the past year.
4. There is also a fiscal angle, which is usually where betting policy gets more complicated than campaign slogans. The Ministry of Finance is pushing back against stricter measures, and Finance Minister Dario Durigan is reportedly trying to persuade Lula that a regulated betting market matters for Brazil’s public finances. In 2025, Brazil collected nearly BRL 10 billion ($1.97 billion) in tax revenue from the licensed betting sector.
5. Lula himself said, according to CNN Brazil, that he would personally favor ending betting because he considers it harmful to society, while also acknowledging that he must weigh political, economic, and social stability before acting. He said the government needs to move one way or another, whether through drastic measures or a more limited approach.

The high-risk angle here is not subtle: if Brazil turns a betting regulation debate into an immediate restriction package, operators could face advertising limits, product bans, or both, with very little lead time. For PSPs, that means checking exposure to Brazilian betting merchants now, not after the decree lands.