Brazil Weighs Online Casino Ban in Lula Emergency Decree

President Luiz Inácio Lula da Silva is preparing a Provisional Measure that could ban online casino games in Brazil and put tighter limits on betting advertising. The plan, run out of the Casa Civil, his chief of staff’s office, is to send the text to the National Congress within days, with the elections now less than 30 days away.

Nothing’s been signed yet, and the content is still being argued over inside the government. But the direction is clear. According to people in the Planalto Palace cited by CNN Brasil, the idea on the table is to keep sports betting and cut out the online casino side, including the online slot games Brazilians call “tigrinho”.

Why a Decree and Why Now

The choice to issue a Provisional Measure rather than introduce standard legislation is driven by constitutional timeline mechanics. Under Article 62 of the 1988 Federal Constitution of Brazil, a Provisional Measure carries immediate force of law upon publication in the Diário Oficial da União (DOU).

By utilizing an MP, the executive branch bypasses lengthy committee debates in the Chamber of Deputies and Senate, imposing immediate operational restrictions. However, Congress retains ultimate authority: the legislature must approve the text within 60 days (extendable once for an additional 60 days), or the measure automatically lapses.

The Politics Behind It

The executive push reflects shifting political dynamics and internal polling conducted by the Workers’ Party (PT), which indicates a 75% disapproval rate for digital betting platforms—with rejection highest among women and younger demographics.

Lula didn’t hide where he stands. At a Planalto meeting with business groups, civil society, experts and artists, where the betting companies were not represented, he said: “Personally, I would put an end to the bets. I think they are an evil for society.” He added that two thirds of the decision was already made and the meeting was the last step before signing.

He also blamed the bets for eating the gains from his own policies, arguing that household debt run up on betting apps had wiped out the income tax exemptions and discounts on power bills and cooking gas.

The Finance Ministry Is Pushing Back

Not everyone in Brasília wants a ban. The Ministry of Finance, which built most of the betting rules over the last few years, is resisting harsher measures, and one wing of the government wants the effort aimed at the illegal market instead.

The money explains the split. Brazil collected close to R$10 billion from the licensed sector in 2025 and R$8.7 billion in the first seven months of this year, and the federal revenue service expects R$16 billion for 2026. Finance Minister Dario Durigan’s job is to persuade his boss that a well-regulated industry, not a strangled one, is good for the public accounts.

Licensed Operators Paid to Get In

The regulated market is barely two years old. Law 14,790 of December 29, 2023 legalized fixed-odds sports betting and online games, and commercial operation started on January 1, 2025, limited to companies authorized by the Finance Ministry on a single “.bet.br” domain.

Each license cost R$30 million and runs for five years. Licensed companies have paid more than R$2.5 billion in license fees since regulation began, so wiping out a product category they paid to offer would very likely end up in court, with claims for refunds and compensation.

A Ban That Could Feed the Black Market

The illegal side still accounts for close to half of the Brazilian market, and the government has struggled to shut it down. Pulling online casino games from licensed sites wouldn’t remove the demand. It could push players who want them toward unlicensed operators, outside the player protection rules licensed sites have to follow.

Congress Has Rewritten a Betting Decree Before

There is a recent precedent, and it didn’t go the government’s way. Provisional Measure 1303 of 2025 tried to lift the tax on betting revenue from 12% to 18%. The joint congressional committee kept the rate at 12% on a vote of 13 to 12.

A decree takes effect on day one. Congress still gets the last word, and on betting tax last year, it used it.