Brazil Betting Ban Bill Puts 13$Bn Market and Tax Revenue at Risk

The warning follows a bill filed on 14 April by Workers’ Party (PT) deputy Pedro Uczai, which seeks to repeal the Bets Law (Law 14.790/2023) introduced on 1 January 2025. The proposal would block all fixed-odds betting, including operators, advertising, sponsorships, and payments.

If the bill passes, it would effectively remove legal access for licensed operators in Brazil. Sponsorships, advertising, and affiliate activity would need to stop, and payment providers would be required to block betting-related transactions. The penalties are strict, with fines from R$50,000 to R$2bn and prison terms of two to eight years for those involved in operating or promoting services.

ANJL mentioned the current system was created to control an activity that already exists. The association warned that banning the legal market “does not eliminate the activity, but may encourage its migration to unauthorised platforms.” At the same time, political pressure is growing. President Luiz Inácio Lula da Silva has raised concerns about debt and social harm, though the bill is not yet backed by the federal government.

A full repeal would also remove a growing source of public income. Brazil’s federal tax authority expects up to R$13bn in betting-related revenue in 2026, with tax rates already set to rise from 12% to 18% by 2027.

The impact would not stop with operators. Affiliates would lose access to one of the largest newly regulated markets. Media companies and football clubs would lose betting-related sponsorship income. Payment providers would need to block or exit betting-related transactions tied to Brazil.

💡 TGJ Take

A full ban looks unlikely, but the proposal shows growing political pressure on betting in Brazil ahead of elections. Operators should not rush to exit, but they should prepare for tighter rules, especially around advertising and payments. Affiliates and media partners face more immediate risk, as restrictions on promotion could hit their revenue first. Brazil remains a key market with strong tax expectations, so the more likely outcome is stricter regulation and higher compliance costs rather than a full shutdown.