Brazil is preparing to introduce stricter controls on its fast-growing online gambling sector, as President Luiz Inácio Lula da Silva pushes forward with a new regulatory crackdown. The proposed measures, expected via presidential decree by mid-May, aim to limit access to betting platforms and curb aggressive advertising practices.
The move comes as the government faces mounting pressure to address the social and economic consequences of online betting in Brazil, particularly its link to rising household debt.
Focus on vulnerable players
One of the main purposes of the bill is to restrict gambling access for financially vulnerable citizens. Individuals enrolled in federal debt renegotiation programmes could be barred from using online betting services altogether. Officials argue that such steps are necessary to protect at-risk groups from further financial harm. Concerns have intensified within the administration as data suggests that increased gambling activity may be worsening personal debt levels and slowing broader economic recovery.
President Lula has repeatedly warned about the impact of online gambling on Brazilian families, signalling openness to even tougher measures if current proposals fail to deliver results. Under the proposal, stricter regulations on gambling advertising are also planned. The aim is to reduce the influence of campaigns that promote impulsive or excessive betting habits. Officials are especially worried about promotional tactics that could lead to addiction, and new regulations are anticipated to change how operators interact with customers.
Political and industry tensions
Backed by several key ministries, the proposed decree could potentially face opposition in Congress, given the mixed feelings toward the gambling industry. Certain lawmakers argue that major regulatory shifts ought to be discussed in the legislative arena instead of being enforced through executive measures.
The debate highlights broader divisions within Brazil’s political landscape. Congressman Pedro Uczai has already proposed a far more drastic approach, legislation that would ban online gambling entirely, reversing the country’s 2025 legalisation.
Lula signals harder line on betting
Earlier in April, President Luiz Inácio Lula da Silva suggested that he would support shutting down Brazil’s fixed-odds betting market altogether. In an interview with ICL Notícias, he described the rapid spread of online wagering as a social harm pushing families deeper into debt.
According to reports from Agência Brasil, the president said that, if it were solely his decision, gambling would be banned, while acknowledging that such a move would depend on congressional backing. He also warned against what he called the “uncontrollable growth of online betting”.
Lula to table President Gambling Bill in Mayhttps://t.co/EmmRYGwXkz
— Cheryl Lee (@CheryIALee) April 18, 2026
Lula’s remarks have exposed a growing contradiction at the heart of government policy. While authorities have spent more than a year building a regulated market, the president is openly questioning whether the industry should exist at all.
Industry warns against overreach
Gambling operators and industry participants have called on the government to focus on balanced regulation instead of imposing broad restrictions. They believe excessive limitations could drive users toward unregulated offshore platforms, undermining consumer protections and reducing tax revenues.
Brazil’s iGaming sector has expanded rapidly since opening its doors as a regulated market on 1 January 2025. The gaming and betting sector in Brazil generated around $7.1 billion per year in revenue in 2025, according to data presented by consultancy H2 Gambling Capital during Casa Brasil. Meanwhile, the Secretariat of Prizes and Betting of the Ministry of Finance’s data found that 17.7 million Brazilians participated in fixed-odds betting in the first half of 2025.
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