Brazil’s Ruling Party Files Bill to Ban Online Gambling Entirely as President Lula Stays Silent

Key Takeaways:

• 68 PT lawmakers filed PL-1808/2026 proposing implicit repeal of Brazil’s Bets Law framework
• The measure covers each gambling operations, advertising, sponsorships, outgo processing, and intermediary services
• President Lula has not endorsed the measure contempt calling for a prohibition connected online betting past week

68 Lawmakers Move to Kill a Framework Their Own Party Built

Deputy Pedro Uczai (PT-SC) submitted PL-1808/2026 to the Chamber of Deputies connected Tuesday, backed by 68 PT lawmakers. The measure calls for the afloat repeal of each laws governing online betting introduced nether Brazil’s Bets Law, the regulatory authorities that took effect connected January 1, 2025.

The projected prohibition extends crossed the full gambling framework. According to the measure text, it would prohibition “the exploitation, operation, offering, availability, promotion, advertising, intermediation and processing of transactions related to fixed-odds betting” passim nationalist territory. Penalties would include fines of up to 2 cardinal Brazilian reais (approximately $385 million) and situation sentences of 2 to 8 years, with aggravated penalties for cases involving minors oregon transgression organizations. Platforms with much than 1 cardinal users would beryllium required to region gambling promotional content.

The measure carries nary signature from President Luiz Inácio Lula da Silva oregon elder members of the national government. Lula said past week that helium would unopen down online betting if it were solely his decision, telling ICL Notícias connected April 8 that helium could not judge “this uncontrolled gambling” continuing. But helium acknowledged the determination required legislature enactment and that the betting industry’s fiscal ties to lawmakers made the governmental mathematics uncertain.

A afloat repeal would spot the PT connected a collision people with its ain fiscal strategy. The Receita Federal collected 2.5 cardinal reais successful gambling-related taxation revenue successful January and February 2026 unsocial – a 236 percent summation implicit the aforesaid play past year. That gross underpins the societal and payment programs astatine the halfway of Lula’s reelection platform.

The crypto implications are direct. Brazil already bans cryptocurrency deposits connected licensed gambling platforms nether the existing regulatory framework. A afloat repeal would destruct adjacent that regulated structure, leaving nary ineligible model and historically pushing enactment to unregulated offshore operators wherever crypto is the default outgo method. The bill’s ain substance defines its scope arsenic covering each “processing of transactions” linked to gambling – connection wide capable to encompass immoderate outgo rail, including integer assets.

The nationalist manufacture commercialized assemblage ANJL called the connection “a large risk,” arguing that the regulated model was specifically designed to bring unregulated enactment into a controlled environment. Uczai framed the measure arsenic an exigency nationalist wellness measure, stating that betting had moved beyond amusement and go “a mechanics for capturing fashionable income.”

Brazil’s October 2026 wide predetermination looms implicit the debate. The measure aligns with the PT’s “3B” run slogan targeting bankers, billionaires, and betting, but governmental expectations had pointed to tighter regularisation alternatively than afloat dismantlement. Whether Lula and the enactment enactment endorse the measure connection straight oregon fto it service arsenic run positioning remains the cardinal question.