Brazil Readies Emergency Decree to Ban Online Casino Games

Brazil's government is drafting an emergency decree that would outlaw online casino games while leaving sports betting legal, sources told Reuters on Sept. 17.

The carve-out means little in practice. Brazil has authorized 188 betting companies, and almost all run both. Casino games move 73.9% of the sector's money, against 26.1% for sports, the licensed operators' association told Reuters.

Brazilian households spend about R$60 billion ($11.7 billion) a year on betting, and the government collected almost R$10 billion ($1.95 billion) from the sector in 2025.

Operators Say a Ban Would Cost R$120 Billion

The National Association of Games and Lotteries, which speaks for licensed operators, says withdrawing the product would expose the state to claims of as much as R$120 billion ($23.4 billion).

"If the state restricts an activity for which it granted authorization in return for a license fee, it cannot ignore the financial consequences of that decision."

Bernardo Cavalcanti Freire, the association's legal consultant, was speaking to Reuters. Operators bought in under Brazil's 2023 betting law, which allows wagers on real sporting events or on "virtual online game events," the clause that legalized casino play. It caps the license fee at R$30 million ($5.9 million) for three brands over five years.

Lula Gives His Answer Before the Oct. 4 Vote

Lula has attacked the industry for months. In a Sept. 16 podcast interview, he said he had held three meetings on betting inside his government and that "my personal disposition is to end the bets." He compared betting debt to crack addiction.

The Finance Ministry, which designed the licensing system, has accepted the lost tax revenue but is still weighing the consequences, Reuters reported. Betting brands fund most of Brazilian football, and one person in the sport called such a measure a blow to the game.

In September, Cambodia ordered its licensed casinos to stop running online betting from October.

A provisional measure takes effect the day it is published, and Congress then has 120 days to approve it. Sources say Lula will give his final word before the Oct. 4 first round.

Treat gambling as entertainment you pay for. 18+, and if it stops feeling like entertainment, help exists at BeGambleAware and GamCare.