Brazil Government Pushes to Remove Online Casino Games From Regulated Betting Market

Brazil’s Congress is set to return on 3 August with the Lula government expected to intensify support for a bill that would ban online casino games while preserving regulated sports betting.

Brazil’s online gambling market may face another major policy shift as Congress prepares to resume work on 3 August.

President Luiz Inácio Lula da Silva’s government is expected to increase pressure for the approval of PL 2.258/2026, a bill introduced by government leader Paulo Pimenta. The proposal would remove online casino games from Brazil’s regulated betting framework.

The bill targets digital gambling products whose outcomes are generated by electronic systems or algorithms. That includes online slots and games commonly associated in Brazil with the “Jogo do Tigrinho” debate.

The proposal would ban the operation, offering and advertising of these products in Brazil. It would also apply to offshore platforms accessible to users in the country, regardless of payment method or currency.

Sports betting would remain legal. The bill preserves fixed-odds betting on real sports events and official lotteries, meaning the government is not currently pursuing a full repeal of Brazil’s regulated betting regime.

The political argument is centred on consumer protection. Pimenta cites concerns over household debt, financial losses, addiction risks and algorithm-driven games that do not depend on external sports outcomes.

The debate also reflects Lula’s harder public stance on gambling. Although Brazil’s regulated betting market began operating nationally in 2025 under rules structured by his administration, the president has repeatedly criticised the social impact of online gambling.

For licensed operators, the risk is substantial. Companies that entered Brazil expecting a broad online betting and casino market could see casino-style products removed from their authorised offering while sports betting remains regulated.

The proposal is still not law. It must pass through the Chamber of Deputies and the Senate before reaching presidential sanction. Political resistance is likely, especially from operators, media groups, football clubs and sponsors tied to betting revenue.

If approved, the bill would mark a clear split in Brazil’s gambling policy: sports betting would stay inside regulation, while online casino games would be pushed out of the legal market.

The next stage in Congress will show whether Lula’s government can turn political pressure into legislation, or whether Brazil will keep trying to regulate online casino products through stricter supervision instead of prohibition.