Brazil to clash over plans to scrap the Bets Law

In Brasilia, Congress has indicated cross-party agreement to repeal the Bets Law and establish a new federal online gambling system with stricter rules on conduct, marketing, and licensing—altering the market’s participation landscape.

The Bets Law Lacks Support

While hindsight is perfect, stakeholders should have seen the repeal of the Bets Law coming.

First proposed in 2019 during Michel Temer’s presidency, the law was rejected by President Jair Bolsonaro and the Liberal Party when it came up for final approval in 2023.

But after a year of revisions, the PT administration approved the Bets Law in January 2025.

Still, the regime has angered President Luiz Inácio Lula da Silva, who sees gambling as conflicting with the PT’s policy goals and its economic aid programs for the poor.

During his campaign for the upcoming election, Lula promised to introduce a new presidential bill to eliminate debt linked to Brazilian gambling and bar those receiving financial aid from placing bets.

Lula has also vowed to reveal his plans for gambling reforms. But the President could be overtaken by Congress’ political blocs, which are negotiating to resolve the issue before the October 4 elections.

Political Bloc Moves

The push to revamp the Bets Law gained clearer momentum on May 19, when ministers submitted two distinct bills to Congress, each aimed at revising different sections of the framework.

The two bills—No. 2,470/2026 and No. 2,478/2026—were filed in the Chamber of Deputies. Both call for sweeping changes to online betting regulations, focusing on enhancing protection for mental health, consumers, and household finances.

The documents also include guidelines to prevent and reduce gambling-related harm, broadening the sector’s regulatory reach.

The Senate proposal includes ministers from parties across Brazil’s ideological spectrum, such as Republicanos, the Workers’ Party, the Liberal Party, and the Social Democrats. The Chamber’s initiative similarly garnered backing from lawmakers with widely differing political views.

Lurking in the background of Congress is the ‘Evangelical Caucus’—a group that has long criticized gambling on moral grounds and grown into an increasingly powerful force in Brazilian policy-making.

Worries about household debt, consumer harm, and financial vulnerability have transcended traditional political lines, paving the way for legislative consensus.

Negotiating Consensus

These proposals don’t go as far as full prohibition, but some others do.

Pedro Uczai, a PT-SC federal deputy, has put forward Bill No. 1,808/2026, which would go much further by banning betting operations and advertising, as well as dismantling parts of the existing regulatory framework.

Uczai claims that betting platforms have become “a constant tool for siphoning off popular income”, worsening household debt and financial instability.

Senator Eduardo Girão’s Bill No. 1,018/2026 targets betting engagement tools like cashback offers, VIP programs, and gamification features—reflecting rising worries that operators are increasingly using retention tactics that promote excessive gambling.

Girão asserts that gambling has created “a situation of deep social, economic, and institutional worry”, necessitating more robust state intervention.

Lastly, Senator Damares Alves continues to push forward proposals for a nationwide ban on gambling advertising, which would drastically alter sponsorship, media, and customer acquisition strategies in Brazil’s betting sector.

In short, during this election period, negotiations and deal-making will increasingly decide which political bloc manages to dismantle the Bets regime and bring an end to Brazil’s first federal gambling system.