Senator Proposes Phased Ban on Betting Operators in Brazil
Brazil.- 14 August 2026 | www.zonadeazar.com Senator Carlos Fávaro, representing the PSD in Mato Grosso, has introduced a bill seeking to prohibit fixed-odds betting in Brazil through a phased withdrawal from the market.
The proposal does not call for an immediate ban. Currently authorised companies would be allowed to continue operating until their existing licences expire, but renewals and new authorisations would no longer be permitted.
Scope of the Bill
The proposal would apply to licences issued by the Federal Government as well as those granted by individual states and the Federal District.
In every case, continued operations could not extend beyond five years from the publication of the proposed law.
Once existing authorisations expire, companies would no longer be permitted to legally offer fixed-odds betting in Brazil.
No New Licences or Renewals
The bill would prevent the issuance of new licences and prohibit the renewal of existing authorisations.
The transition mechanism is designed to temporarily preserve legal relationships established under the current regulatory framework without guaranteeing operators an indefinite right to remain in the market.
The proposal also states that companies would not be entitled to compensation for lost profits, expectations of future operations, reduced expected profitability or loss of market position.
Senator’s Arguments
Fávaro argues that the current regulatory framework has failed to achieve a sufficient balance between the commercial operation of fixed-odds betting and the protection of public health, families, consumers and individual financial stability.
According to the bill’s justification, this assessment supports preventing both the long-term continuation and further expansion of the regulated activity.
At the same time, the proposal seeks to preserve mechanisms used to combat illegal gambling activity.
Statements
In the bill’s justification, Fávaro argues that the regulatory model has not produced sufficient results to reconcile fixed-odds betting with social and financial protection objectives.
The senator also says investor confidence must be considered in order to preserve institutional stability and legal certainty.
For that reason, he supports a transition period for companies that invested under the existing legal framework, while making clear that the transition would not create a permanent right to continue operating.
Regulatory Context
Brazil currently operates a federally regulated fixed-odds betting market alongside initiatives and licensing structures developed by individual states.
Fávaro’s proposal goes considerably further than measures focused solely on advertising restrictions, responsible gambling or tighter operator controls.
Brazil’s Congress has received several proposals seeking either to prohibit betting entirely or limit specific aspects of the sector.
So far, none has completed approval in both houses of Congress and received presidential sanction.
Next Steps or Impact
The bill will now have to progress through the Senate’s legislative process before any potential final vote.
If ultimately approved by Congress and signed into law, Brazil would begin a progressive wind-down of its regulated betting market, allowing only the temporary continuation of licences that have already been granted.
The proposal could have significant implications for operators, investors and regulators because it directly challenges the long-term continuation of Brazil’s existing regulated betting model.
Editó: @fonta
