Brazil’s National Congress will return from its winter recess on 3 August, with the PT government due to intensify efforts to sanction a bill that will exclude and prohibit online casino games.

The mandate is carried by Bill PL 2,258/2026, introduced on 7 May by PT deputy Paulo Pimenta, in support of President Luiz Inácio Lula da Silva to overhaul the Bets Law, the framework that has governed online gambling in Brazil since 1 January 2025.

A self-described “no friend of gambling”, President Lula has repeatedly told the media of his dislike of the gambling sector in Brazil, which he believes the current regime holds little accountability of licences and no protections of the nation’s poor that are gambling on debt.

The Bill’s text cites that “Brazil’s regulated gambling framework will prohibit online casino games whose outcomes are generated by electronic systems or algorithms.”

If approved, PL 2,258/2026 would amend the current legislation by removing the provisions permitting online casino games while maintaining the regulated market for fixed-odds sports betting.

According to reports by Poder360, the bill forms part of Lula’s electoral strategy to present a tougher stance on gambling, with Communications Minister Sidônio Palmeira identifying betting as an issue that generates significant concern among parts of the electorate, particularly evangelical voters.

The PT government is also expected to place renewed emphasis on combating the so-called “Jogo do Tigrinho” (Fortune Tiger) phenomenon, which has become synonymous in Brazil with concerns over illegal gambling, financial losses and influencer-led promotion of unlicensed gaming websites.

Lula changes tune once more

As noted by SBC Noticias Brazil, the shift in President Luiz Inácio Lula da Silva’s own rhetoric  is striking. In 2024, Lula backed regulating land-based casinos if Congress approved it, framing gambling as a potential source of tourism, investment and tax revenues. 

Less than two years later, with a general election looming, the political narrative has pivoted sharply towards the perceived social costs of online gambling, with the government increasingly associating digital casino games with household debt, financial fraud and consumer harm”.

PL 2,258/2026 remains under consideration in the Chamber of Deputies and is awaiting assignment by the Speaker before progressing through the legislative process. Should both houses of Congress approve the proposal, it would then require presidential assent before becoming law.

Since the launch of Brazil’s regulated betting market, Congress has received well over 200 legislative proposals relating to the regulation, restriction or overhaul of the Bets Law. 

Yet only three bills appear to hold support. The first, PL 1,808/2026, seeks to repeal the regulated betting framework entirely, while PL 2,258/2026 would preserve fixed-odds sports betting but prohibit online casino games generated by electronic systems or algorithms.

A third legislative track focuses on tightening restrictions on gambling advertising, sponsorships and influencer marketing, aiming to significantly reduce the exposure of online gambling to the general public.

Political bargaining is expected for any Bill to be authorised by the blocs of Congress as the final measure to settle the future terms of online gambling in Brazil prior to the election – as all outcomes are bleak for online gambling licences.