Brazil’s regulated betting market is facing renewed uncertainty after President Luiz Inácio Lula da Silva said he would shut down betting companies if the decision were his to make.
In a report published on September 17, 2026, iGaming Business said Lula made the comments during a livestream after discussing cases involving people affected by online betting. He questioned whether authorities are doing enough to identify excessive betting activity and said the government would consider further action over the social impact of the sector.
The comments come less than two years after Brazil’s federally regulated market for fixed-odds betting and online games began operating in January 2025. Operators require authorisation from the Secretariat of Prizes and Bets (SPA) to offer those products nationally.
Lula renews criticism of betting
According to iGaming Business, the president referred to conversations with people who had experienced serious financial and personal consequences linked to betting. He highlighted one case involving a bettor who, he said, made 1,400 Pix transfers to a betting company over three months.
Lula questioned why the Central Bank had not identified the pattern. Betting-sector oversight is led by the SPA, which monitors authorised operators and their compliance with player-protection requirements.
The president also said one bettor had accumulated BRL2 million in debt over three months, raising concerns about the relationship between betting, household debt and social problems.
Brazil has only recently regulated the sector
Fixed-odds sports betting was first authorised under the country’s 2018 legislation, while Law 14.790/2023 expanded the framework to cover online games. The SPA subsequently introduced an authorisation system under which operators must receive federal approval before offering fixed-odds betting nationally.
The federally regulated market began operating on January 1, 2025. Authorised operators use the .bet.br domain and are subject to requirements covering player protection, monitoring and financial controls.
Government continues to target illegal betting
On September 14, the SPA published Portaria SPA/MF No. 2,750/2026, expanding procedures for identifying and blocking payment transactions connected to illegal fixed-odds betting. The measures include identifying payment channels used by unauthorised operators, interrupting financial flows and blocking accounts associated with illegal activity.
These measures target unauthorised operators. They do not announce the closure of Brazil’s licensed betting market.
Tax revenue adds another dimension
In its August 25 revenue report, iGaming Business said Brazil collected BRL8.747 billion in taxes from betting and online games during the first seven months of 2026, citing Federal Revenue Service figures. The publication projected that revenue could exceed BRL16 billion for the full year if similar monthly receipts continued.
Those revenues are another consideration for policymakers, alongside the social harms raised by Lula. They do not resolve the question of whether the existing player-protection measures are sufficient.
What happens next for Brazilian betting?
The comments reported by iGaming Business were not accompanied by a closure timetable. Lula said he intended to discuss the matter with his team and examine possible measures.
For licensed sportsbooks and online gaming operators, the immediate issue is whether the government will pursue additional restrictions within the existing framework or propose a broader prohibition. A statement of political intent does not itself change the rules under which they operate.
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