Lula da Silva Invokes Emergency Powers to Ban Brazil’s Regulated Online Betting Market
President Luis Inácio Lula da Silva has banned online betting and iGaming in Brazil via Provisional Measure 1,394/2026 effective September 25, 2026. The action threatens BRL73 billion in tax revenue by 2030 and drives activity to illegal markets. Major operators including Entain and Flutter have ceased operations and plan appeals as Congress has 120 days to act.
SCCG Take — Electoral politics has overturned the regulated market’s economic contribution in Brazil. Operators and investors must now treat emerging Latin American frameworks as subject to abrupt reversal risk.
Brazil’s President Luis Inácio Lula da Silva has banned sports betting and iGaming through Provisional Measure 1,394/2026. The decree took immediate effect on September 25, 2026. Operators must close their sites by October 6.
This reverses the framework legalized on December 29, 2023 and launched on January 1, 2025. Brazil had become the fifth largest regulated gambling market in the world with 188 licensed operators serving a population of 214 million. The policy shift was driven by Lula’s re-election campaign against Flávio Bolsonaro and an appeal to Christian fundamentalist voters.
According to iGaming Future, the ban will cost BRL73 billion in lost tax revenues between 2027 and 2030 per LCA Consultoria. That figure equals US$13.8 billion. Betting demand is expected to migrate to offshore and clandestine operators.
Impact on Operators and the Legal Market
Entain stated it was disappointed by this sudden development without consultation of industry stakeholders but is complying with the provisional measure banning sports bets and online gaming in Brazil. The market had been projected to represent approximately five percent of the group’s online net gaming revenue. Flutter Entertainment has ceased operations, expressed extreme disappointment, and is reviewing all available options including the potential to appeal.
The action dismantles gains in organizing what had been an illicit-dominated market. Football clubs face the loss of sponsorship revenue. One industry representative told iGaming Future the outcome will end badly for Brazil and the legal regulated gambling industry.
The Path to Congressional Review
Lula compared gambling to the early spread of crack cocaine, stating society was left completely unprotected and that the country had brought the casino into people’s homes. The provisional measure must receive congressional approval within 120 days or it expires. The National Association of Games and Lotteries and the Brazilian Institute for Responsible Gaming will challenge the ban in court. The Ministry of Finance and sports organizations are expected to lobby for reversal to restore the revenue stream.
The 120-day window will test whether commercial realities can overcome the political calculus. Regulated operators face immediate revenue loss while illegal markets gain ground. Sustained stakeholder pressure may yet produce a different legislative result.
Reporting: iGaming Future
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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