PT government’s legal executive calls on congress to repeal the Bets Law, but where is Lula endorsement? 

The legislative caucus of Brazil’s Workers’ Party (PT) has submitted Bill PL-1808/2026, proposing an outright federal ban on “online gambling” to Congress.

The mandate, formally presented by PT deputy Pedro Uczai, calls for the full repeal of all laws and provisions governing online betting introduced under the Bets Law (PL 2626/2023),  the regulatory regime in effect as of 1 January 2025.

The Proposed federal ban would extend across the entire gambling framework established by the Bets Regime as the text covers all functions related to operating an online gambling platform, including advertising, sponsorships, payment processing and any intermediary services linked to gambling activity.

The Bill leaves little ambiguity over its prohibitive scope, stating: “This Law prohibits, throughout the national territory, the exploitation, operation, offering, availability, promotion, advertising, intermediation and processing of transactions related to fixed-odds betting.”

Modalities further call for the removal of betting applications and websites, the blocking of financial transactions tied to gambling, and the enforcement of strict penalties on operators, affiliates and service providers found to be in breach of the prohibition.

The Bill is presented to Congress as an emergency measure designed and supported by the PT government’s legal arm as a civic protection “to stop the public health and economic harms associated with gambling”.

Bets Law viewed as economic harm

As sponsor, Uczai stated that it was upon PT government’s duties to intervene on “rising household debt, financial instability and mental health issues” that have arisen from the introduction of an online gambling market.

“If betting causes the harm we think it does, why don’t we just get rid of it? Or regulate it so there aren’t so many bets in Brazil, allowing you to have some, if they even serve any purpose,” Uczai told Congress.

Though submitted to Congress, the bill carries no signature from President Luiz Inácio Lula da Silva or senior members of the federal government, underlining that the proposal remains a parliamentary initiative rather than an official executive policy.

Campaigning for a fourth presidential term, Lula has repeatedly voiced his opposition to the Bets regime, stating as recently as last week that, if it were solely his decision, he would move to ban online gambling outright.

However, such rhetoric has largely been interpreted as campaign positioning, aligning with the PT’s “3B slogan” — targeting higher taxation of bankers, billionaires and betting.

Political expectations had instead pointed to a more measured approach by PT,  in which Lula would leverage PT’s higher ranks to tighten the regulatory framework rather than dismantle it.

This included a direct intervention on the final legal settlements of the Bets regime, including the backing of a federal ban on gambling advertising, strengthening consumer protection safeguards, and formally treating gambling addiction as a public health issue.

In presenting the bill, Uczai made no reference to support from the upper ranks of the PT government, underlining that the proposal remains a parliamentary initiative rather than a coordinated executive move.

Where is Lula?

A full repeal of the Bets regime would place Luiz Inácio Lula da Silva and the PT government on a collision course with key Brazilian institutions.

Chief among these is the Receita Federal, the federal tax authority, which has backed the regulated framework and is forecasting up to R$13bn (£1.9bn) in gambling-related receipts in 2026 — funds viewed as critical to sustaining PT social and welfare programmes.

Backing a federal ban would also provoke resistance from Brazil’s football leagues and major media groups, both of which have become increasingly reliant on high-value sponsorship deals linked to the betting sector.

As noted last week by SBC Noticias Brazil: “such a move would carry significant fallout, effectively restarting a legislative process that took more than a decade to settle, while risking conflict with stakeholders across tax revenues, media and sport. 

The question remains: does the PT government want to take Bets back to ground zero?”

A full repeal of the Bets regime would also see Lula abandon key policy measures introduced under its framework, including the regulatory oversight of the SPA and the rollout of Brazil’s national self-exclusion scheme, which is currently being piloted at the federal level.

Most significantly, a prohibition push risks internal friction within the PT and Congress itself. The Bets regime was authorised under Lula’s administration, viewed as the culmination of a decade-long policy effort. 

As developments progress, it remains unclear whether Lula and PT high ranks will endorse Bill PL-1808/2026, or whether the proposal represents further political posturing by the party ahead of Brazil’s October election.