Brazil’s Gambling Sector Prepares for Dialogue Following Lula Win

Brazil has re-elected Luiz Inácio Lula da Silva, and the country’s gambling sector is preparing for more dialogue on Provisional Measure 1,394, which the President announced last month and aims to impose strict restrictions on the industry. Brazil’s Association of Games and Lotteries Calls for Discussion on Gambling Ban Provisional Measure 1,394, which prohibited betting in the country, brought the licensed betting sector to a halt. Widely interpreted as an attempt to gain support ahead of the presidential election, the measure disrupted the regulated market just less than two years after it was established. Brazil’s National Association of Games and Lotteries (ANJL) issued a statement acknowledging Lula’s victory and expressing its willingness to resume dialogue. Despite his criticism of the sector, the ANJL remains hopeful that a democratic and transparent discussion with the government can take place, potentially paving the way for a solution that revitalises the market. The organization believes that constructive discussions could lead to a positive outcome for the return of betting. It maintains that efforts should focus on tackling illegal operators as the most appropriate course of action. The Provisional Measure Did Not Go Without Criticism The move generated quite a bit of criticism from various sides, including industry representatives and government bodies. Some said that by implementing the Provisional Measure, Lula deprives Brazil of a source of tax revenue. This year, prior to the ban, the Federal Revenue Service collected BRL 11.1 billion ($2.05 billion) in revenue, and the total revenue for 2026 was projected to reach BRL 15 billion ($2.8 billion). At the same time, some said that the ban on gambling has hurt potential investors in Brazil’s economy. According to Kambi director Mateo Lenoble, the ban has damaged investor confidence and created legal uncertainty. Furthermore, the Provisional Measure created significant opportunities for the illegal market, allowing unlicensed operators to attract bettors to clandestine websites. These platforms offer no player protection, may be accessible to minors, generate no tax revenue, and don’t even provide a guarantee that bettors will be able to withdraw their winnings. Supreme Court Announces Hearing to Discuss the Measure Judge Luiz Fux of Brazil’s Supreme Federal Court (STF) has taken the first step towards reopening discussions on gambling in the country following the election, as he has scheduled a public hearing for November 3 to discuss actions concerning betting. The hearing was requested by the Attorney General’s Office (AGU), the parties who filed Direct Action of Unconstitutionality (ADI) No. 8,027, and entities admitted to the proceedings as amici curiae. Judge Fux said during the election period that he would refrain from taking any action that could lead the measure to be perceived as interference in the political process. However, now that the vote is over, he explained that the hearing was urgent given the deadlines set out in the provisional measure and its economic implications. It seems, however, that others have taken Lula’s actions as an example, as Buenos Aires in neighboring Argentina is also eyeing a ban on online gaming and betting, similar to Provisional Measure 1,394.