Lula’s Reelection Leaves Brazil’s Online Gaming Ban in Legal Limbo
Congress still has 120 days to sustain the measures, while online poker remains outside the fixed-odds restrictions.
- Lula won Brazil’s presidential election with about 51.8% of the vote after campaigning to ban online sports betting and casino games.
- Congress must approve the proposed online-wagering and fixed-odds measures within 120 days for them to remain in effect.
- Brazil’s existing gambling restrictions left online poker available because poker is treated differently from fixed-odds betting.
- The outcome could affect major operators, a market valued at about $5.7 billion in annual net revenue, and gambling-funded soccer clubs.
Luiz Inácio “Lula” da Silva’s reelection has renewed uncertainty over Brazil’s online betting and gaming market, including the longer-term position of major operators. Lula defeated Flávio Bolsonaro with about 51.8% of the vote and is set to begin a fourth presidential term.
Before the election, Lula made a nationwide ban on online sports betting and casino games a central campaign theme, presenting it as a measure to protect indebted households. He had announced the proposed restrictions in September, calling online gaming a “cancer” and saying, “Either we remove the tumor, or it kills us.”
The election result does not by itself settle the ban’s legal future. Congress must approve both the online-wagering ban and fixed-odds-betting measure within 120 days for them to remain in effect. Efforts to overturn the policy could also go through Congress or Brazil’s Supreme Federal Court.
As we reported Oct. 6, Brazil’s new gambling restrictions closed licensed online betting and gaming offerings while leaving online poker available, with PokerStars, GGPoker and partypoker continuing to serve Brazilian players. The difference rests on poker’s treatment as a game of skill, rather than fixed-odds betting.
Entain’s partypoker and Flutter Entertainment’s PokerStars have significant Brazilian operations. A lasting ban could also affect betting operators and suppliers including Bet365, Genius Sports and Sportradar, while Flutter is also the parent company of FanDuel.
Brazil’s regulated fixed-odds framework is relatively recent. Law No. 14,790, assented to by Lula on Dec. 30, 2023, allowed authorized companies to offer fixed-odds betting on sporting events and certain online games. The law requires Ministry of Finance authorization and permits operators to pay fees of up to 30 million reais to use up to three commercial brands over five years.
The stakes are considerable. Regulus Partners estimated Brazil’s gaming industry generated about $5.7 billion in annual net revenue, while the government put household online-betting spending at roughly $11.6 billion a year. Brazil has almost 214 million people and has been a major market for online poker operators.
The policy faces political and commercial resistance. Card Player reported that the National Association of Games and Lotteries planned a court challenge and intended to seek recovery of five-year license payments, including 30 million reais plus claimed investment and moral damages. Flávio Bolsonaro called the ban announcement “populist, hypocritical, and politically motivated.”
Sports organizations have raised separate concerns because gambling has become an important revenue source for Brazilian soccer. Major soccer franchises collected about $212 million from the industry in the previous year, according to Globo, and Grêmio warned that curtailing online gaming could push activity toward illegal betting and threaten clubs’ finances.
Political support for the restriction is not clear-cut. Brazil’s legislature moved to the right in the latest elections, creating uncertainty over congressional approval, although Reuters polling cited by Sportico found roughly 75% of Brazilians backed a complete gambling ban. Jordan Bender said investors had already priced in the risk of Brazil removing sports betting and iGaming, and warned that operators may reconsider future investment even if some form of gambling returns.
