Brazilian lawmakers propose legislation to ban fixed-odds betting despite fiscal and enforcement concerns

A group of Brazilian lawmakers has introduced legislation seeking to prohibit fixed-odds betting across the country, even as political and fiscal considerations raise questions about the feasibility of such a measure.

Bill 1808/2026 was presented in the Chamber of Deputies on Tuesday, backed by 68 parliamentarians. The initiative was led by the Workers’ Party caucus, with support from 65 of its 66 deputies, alongside two members of PSOL and one from REDE.

The proposal would revoke key provisions of Laws No. 13.756 of 2018 and No. 14.790 of 2023, effectively dismantling the current regulatory framework for betting. In its place, the bill introduces a prohibition covering the operation, offering, promotion, advertising, intermediation, and facilitation of fixed-odds betting throughout the national territory, including services provided by companies abroad targeting Brazilian users.

According to the text, the objective is to “protect the Brazilian population from the serious social, economic, and public health damage caused by fixed-odds betting.”

The bill also outlines enforcement measures, including the removal of websites and applications, de-indexing from search engines, and the interruption of financial transactions linked to betting platforms.

The National Telecommunications Agency would be tasked with ordering access blocks, with operators required to comply within 24 hours. Liability would extend to platforms, intermediaries, and payment providers involved in facilitating such services.

In parallel, the proposal introduces provisions aimed at mitigating social harm. These include the creation of support and treatment programs for individuals with gambling addiction, as well as public awareness campaigns addressing the risks associated with betting. Lawmakers frame these measures towards a social protection approach targeting indebtedness, addiction, and the impact of gambling on household income and the wider economy.

Deputy Pedro Uczai, who leads the Workers’ Party and the Federation of Hope Brazil Bloc, circulated a message inviting colleagues to join as co-authors of the bill. The document reads as follows, as per BNL Data:

“Ladies and Gentlemen of Parliament, I am forwarding an invitation for CO-AUTHORSHIP of the Bill that prohibits the exploitation, offering, promotion, and facilitation of fixed-odds betting throughout the national territory, revokes provisions of Laws No. 13.756, of December 12, 2018, and No. 14.790, of December 29, 2023, establishes measures for blocking access, removing applications, interrupting financial flows, holding intermediaries accountable, and protecting content of public interest, and provides other measures. We count on your participation,” the document stated.

Despite the level of support within the Workers’ Party, members of allied parties PCdoB and PV, which together form part of the same parliamentary federation, did not join the initiative.

The legislative push comes amid an ongoing debate over the economic and social impact of betting. A study presented in Brasília on Tuesday by LCA Consultoria Econômica, titled “Household Debt and Default in Brazil – Evidence on Recent Dynamics and Impact Factors,” disputes claims that rising household indebtedness is primarily driven by sports betting activity.

A separate study from March also suggests Brazilians who engage in online sports betting and gaming spend relatively small amounts each month.

At the same time, President Luiz Inácio Lula da Silva has intensified criticism of betting platforms, making the issue a recurring element of the government’s public messaging. The administration’s communication strategy has framed betting alongside banks and billionaires under the label “BBB Taxation.” Analysts view the rhetoric as politically motivated, particularly in an election year, where stricter language may resonate with voters.

However, with expectations that betting could generate large public revenue, both the executive and legislative branches face constraints in advancing a full prohibition. Observers note that neither branch appears willing to forgo these potential inflows as the government seeks to meet fiscal targets.

Industry stakeholders have warned that banning regulated betting could produce unintended consequences.

They argue that such a move may lead to legal uncertainty and encourage the expansion of unregulated markets. Estimates suggest that as many as 25 million Brazilians could shift to illegal betting platforms, increasing exposure to organized crime, money laundering, and the absence of consumer protections.

The prospect of migration to illicit channels has also raised concerns about enforcement challenges. Critics caution that restricting legal access may create incentives for underground activity, potentially undermining the policy’s intended social protections.