Provisional Measure on betting: Lula may decide the sector’s future in the coming hours

The federal government may issue a provisional measure (MP) as early as this Wednesday (23) to restrict the betting sector, according to a report by Veja. At the Planalto, however, a piece of electoral data drew attention during the final stages of drafting the text. An April survey by Genial/Quaest indicated that 29% of Brazilians aged 16 and older have a habit of betting. Among Bolsonaro supporters, the figure reaches 33%, higher than the 26% recorded among Lula supporters. In the South, the region of the country where the right shows its strongest electoral performance, the rate rises to 37%. The Planalto team only became aware of this data recently, when discussions regarding the provisional measure were already at an advanced stage. Furthermore, Lula met with ministers on Wednesday to define the scope of the measure. Among the possibilities are new rules for advertising by betting companies and the blocking of online casinos. Among the meeting’s participants are the heads of the Chief of Staff’s Office, Miriam Belchior; the Ministry of Finance, Dario Durigan; the Ministry of Planning, Bruno Moretti; the Secretariat of Social Communication (Secom), Sidônio Palmeira; and the General Secretariat, Guilherme Boulos. According to Metrópoles, Central Bank President Gabriel Galípolo also visited the President of the Republic’s official residence this Wednesday. Final decision will rest with Lula, says minister. In an interview with the news portal Jota, the Minister of Institutional Relations, José Guimarães, stated that the final decision will rest with Lula. The economic team is conducting studies on the potential financial and fiscal impacts of the various versions of the measure targeting the betting market. “What is the scale of the intervention that will be carried out? Moderate? Total? It is in his [Lula’s] hands,” he stated. “But there is one thing the president will not budge on: he is going to stir up this hornet’s nest.” Guimarães noted that a complete ban on the activities is also being considered. According to him, the government is evaluating two possibilities: a total ban or a more limited approach involving stricter regulations and oversight of the sector. According to Guimarães, the provisional measure could be announced as early as this week. However, the minister emphasized that the government also intends to speak with the presidents of the Chamber of Deputies, Hugo Motta (Republicanos-PB), and the Senate, Davi Alcolumbre (União-AP), before officially announcing the decision. Betting companies notify clubs of possible contract terminations. UOL columnist Rodrigo Mattos revealed that some betting companies have already issued formal notices to their partner clubs regarding the possibility of contract termination should the provisional measure ban online gaming and sports betting in Brazil. According to Mattos, the termination of all agreements is considered a certainty if the Provisional Measure confirms these prohibitions. Even companies whose contracts do not provide for immediate termination may seek to end the relationships through the courts. “It alters the contractual premise. My companies have this clause to terminate contracts—most have such clauses. You have to provide notice and terminate,” explained Bernardo Freire, a lawyer and consultant for the National Association of Games and Lotteries (ANJL), in an interview with UOL. In his view, the issue should be debated in Congress rather than addressed via a provisional measure, as it lacks an emergency nature. Freire believes the case could end up in court if the measure is confirmed. The lawyer also emphasized that betting companies could sue the federal government for losses, given that the market began operating under regulation in 2025, during the current administration. The lawsuits may include claims for compensation for losses related to the period of operations covered by the authorizations granted by the government. The companies paid R$ 30 million for licenses valid for five years. “The damage is already done (even if there is a provisional measure and Congress later reverses it). Will the publicly traded company return to this market? The cost to the government could reach R$ 120 billion,” declared Freire. O post Provisional Measure on betting: Lula may decide the sector’s future in the coming hours apareceu primeiro em iGaming Brazil.