Brazil: Congress to Decide iGaming’s Future Following Lula’s Election Win
Brazil.- 27 October 2026 | www.zonadeazar.com Brazil’s iGaming and sports betting industry is now focusing on the National Congress following the re-election of Luiz Inácio Lula da Silva in the presidential runoff on 25 October 2026.
The incumbent president secured 51.76% of the vote, compared with 48.24% for Flávio Bolsonaro, with 99.81% of ballots counted.
The result opens a new phase in the dispute over Brazil’s online gambling prohibition, introduced through a federal provisional measure on 25 September.
Lula Overturns First-Round Defeat
The election represents a significant development in Brazilian politics.
Lula overturned the first-round advantage secured by Bolsonaro, whose Liberal Party received approximately 47% of the vote, compared with 45.2% for Lula’s Workers’ Party.
The result makes Lula the first Brazilian president since 1988 to reverse a first-round defeat and the first to secure four separate presidential terms.
His continuation in office also maintains the debate surrounding the restrictions imposed on Brazil’s regulated gambling market.
Congress Holds the Key to the Gambling Ban
On 25 September 2026, Lula’s Government issued a provisional measure prohibiting online sports betting and casino gaming.
Although the measure took effect, congressional approval is required for the prohibition to remain in force.
The National Congress has a constitutional period of up to 120 days, subject to the relevant legislative procedures, to ratify or reject the measure.
Consequently, the presidential election result does not automatically determine the industry’s future.
Congress may:
- Approve the prohibition and maintain the restrictions.
- Amend the measure before approval.
- Reject the legislation, preventing its continuation.
- Allow the measure to lapse if the legislative process is not completed.
Opposition Parties Retain Parliamentary Majority
Despite Lula’s re-election, right-wing political parties will retain a majority position in the Brazilian Congress.
According to the reported legislative results:
- 303 of the 513 seats in the Chamber of Deputies will be held by right-wing parties.
- 124 seats will be held by left-wing representatives.
- 86 deputies will represent centrist parties.
- Right-wing parties will also control approximately two-thirds of the Senate.
This distribution could significantly influence negotiations surrounding the gambling prohibition.
However, parliamentary composition does not guarantee a particular outcome, as individual parties and legislators will need to establish their positions during the legislative process.
Lula Signals Willingness to Work with Congress
In his victory speech, the president expressed his commitment to working with representatives from across the political spectrum.
Lula emphasised that, following the election, his responsibility would be to govern for the entire Brazilian population.
He also acknowledged the need to work with the Congress elected by voters, regardless of political differences.
The relationship between the executive and legislative branches will be central to determining the future of gambling regulation.
Flutter and Betano Consider Legal Action
The prohibition has also prompted concerns among major international gambling operators.
Flutter Entertainment and Betano have confirmed that they are considering legal proceedings to protect their investments and previously granted operating rights.
Both companies had obtained five-year authorisations to participate in Brazil’s regulated gambling market, which opened in January 2025.
The provisional measure interrupted operations before those licences were scheduled to expire.
Operators argue that the prohibition undermines legal certainty and investments made to comply with regulatory requirements.
Industry Warns of Employment and Tax Revenue Impact
The Brazilian Institute of Responsible Gaming (IBJR) commissioned a study examining the potential economic consequences of the prohibition.
The research, conducted by LCA Consultores, identified approximately 15,500 direct and indirect jobs associated with the industry.
It also estimated that a complete prohibition could put between BRL58 billion and BRL73 billion in tax revenue at risk between 2027 and 2030, depending on the assumptions applied.
These figures are industry-backed projections rather than confirmed fiscal losses.
The study also highlighted the economic importance of sports sponsorships and investments made by licensed operators.
Industry Impact and Next Steps
With Lula re-elected and a parliamentary majority representing different political interests, the future of online gambling will depend on legislative negotiations and pending legal challenges.
Congress must determine whether to confirm, amend or reject the prohibition introduced in September.
For the iGaming industry, Brazil remains one of Latin America’s most significant markets, although it currently faces substantial regulatory uncertainty.
Consumer protection, legal certainty, tax revenue and measures against illegal gambling will remain central issues in the debate.
Editó: @fonta
