Brazil’s PT Government Files Bill to Ban Online Casino Under Bets Law Overhaul
2026-07-30
Source: SBC News
The Brazilian government has introduced Bill PL 2,258/2026 to remove online casino games from the regulated Bets Law while preserving fixed-odds sports betting, part of President Lula's electoral pivot against gambling. Congress will debate the measure alongside other proposals that range from a full repeal of the betting framework to tighter advertising restrictions.
When Brazil’s National Congress reconvenes on 3 August after its winter recess, President Luiz Inácio Lula da Silva’s Workers’ Party (PT) is expected to push forward legislation that would strip online casino games from the country’s regulated gambling framework.
The vehicle for this effort is Bill PL 2,258/2026, introduced on 7 May by PT deputy Paulo Pimenta. The proposal targets the Bets Law, which has governed online gambling in Brazil since 1 January 2025, and would remove all provisions that permit casino games whose outcomes are determined by electronic systems or algorithms. Fixed-odds sports betting would remain legal under the amended regime.
President Lula, who has described himself as “no friend of gambling,” has frequently voiced concern that the current system lacks proper accountability for licensees and fails to protect vulnerable Brazilians from accruing debt through gambling. The bill forms part of a broader electoral strategy, according to reports from Poder360, with Communications Minister Sidônio Palmeira noting that betting has become a particularly sensitive issue among evangelical voters.
Lula’s position marks a sharp reversal from 2024, when he supported regulating land-based casinos, framing them as a vehicle for tourism, investment and tax revenue. Now, with a general election approaching, the government’s rhetoric emphasises the social costs of online gambling—linking digital casino games to household debt, financial fraud and consumer harm. The PT administration is also expected to intensify its campaign against the so-called "Jogo do Tigrinho" (Fortune Tiger) phenomenon, which has become synonymous with illegal gambling, financial losses and influencer-led promotion of unlicensed sites.
Since the Bets Law took effect, Congress has received more than 200 legislative proposals related to the regulation, restriction or overhaul of the framework. Among these, only three have gained notable traction. PL 1,808/2026 seeks to repeal the entire regulated betting market. PL 2,258/2026 would preserve sports betting but prohibit algorithmically generated online casino games. A third track focuses on tighter controls on gambling advertising, sponsorships and influencer marketing.
PL 2,258/2026 is currently awaiting assignment by the Speaker of the Chamber of Deputies. To become law, it must pass both houses of Congress and receive presidential assent. Political bargaining among congressional blocs is expected to determine the final shape of any measure, with observers noting that all current outcomes look unfavourable for holders of online casino licences.