Bill Proposes Ending Brazil’s Licensed Betting Market Within 180 Days
Brazil.- 28 August 2026 | www.zonadeazar.com Federal Deputy Caroline de Toni has introduced legislation seeking to bring Brazil’s regulated fixed-odds betting market to an end.
The proposal establishes a 180-day transition period after which existing authorisations granted to licensed operators would expire.
End of Regulated Market
The bill seeks to reverse Brazil’s current legalisation and regulation of fixed-odds betting.
If approved, currently authorised operators would have 180 days before their licences ceased to be valid.
The proposal joins a growing number of initiatives introduced in recent months seeking either to prohibit or significantly restrict the sector.
Fines of Up to R$2 Billion
The bill establishes penalties for companies continuing to offer online betting after prohibition takes effect.
Fines could reach R$2 billion, depending on the seriousness of the violation and whether the operator is a repeat offender.
The provision is designed to ensure that prohibition is accompanied by measures capable of discouraging continued illegal activity.
Obligations for Payment Institutions
The proposal also places responsibilities on payment and financial institutions.
These businesses would be required to take measures preventing transactions involving fixed-odds betting operators acting outside the law.
The approach targets one of the essential pieces of infrastructure supporting illegal platforms.
Social-Media Platforms Also Covered
Social-media companies would also face specific obligations.
The legislation requires measures aimed at preventing advertisements involving prohibited betting operators.
The proposal therefore combines commercial, financial and advertising restrictions.
Household Debt as Key Argument
In her justification, Caroline de Toni cites several studies examining Brazilian consumer spending on betting.
She argues that the market has reached sufficient economic scale to influence household decisions around consumption, savings and indebtedness.
This forms one of the principal arguments supporting her call for prohibition.
Mental-Health Concerns
The proposal also highlights risks associated with problem gambling.
According to the deputy, the consequences can affect several areas of bettors’ lives, including:
- Personal finances.
- Family relationships.
- Mental health.
- Professional life.
- Consumption and savings.
Consumer protection therefore forms another central element of the proposal.
Regulation and Tax Revenue Questioned
The deputy acknowledges the argument that regulation allows authorities to collect taxes, supervise operators and bring previously clandestine activity into a legal framework.
However, she argues that public revenue alone should not justify maintaining an activity when its economic and social costs materially affect households.
The proposal therefore seeks to abandon the current regulated model.
Tackling the Illegal Market
The legislation does not simply seek to terminate legal authorisations.
It also introduces mechanisms intended to combat platforms continuing to operate after a potential ban.
Financial penalties and obligations imposed on payment providers and social networks form part of this enforcement strategy.
180-Day Transition
The deputy proposes that the market should close through a transition rather than immediately.
Currently licensed operators would have 180 days before their authorisations expired.
The approach is intended to combine market closure with player protection and enforcement against clandestine operators.
Bill Has Yet to Begin Formal Proceedings
The proposal was filed on 24 August 2026.
At the time of publication, it had not yet formally begun its legislative proceedings in the Chamber of Deputies.
It must therefore pass through the required stages before any possible vote.
Industry Context
Brazil has operated a federally regulated fixed-odds betting market since January 2025.
During 2026, the number of legislative proposals seeking to change that model has increased significantly, ranging from advertising restrictions and new taxes to complete prohibition.
Caroline de Toni’s initiative sits firmly within the latter category.
Next Steps or Impact
The bill must begin its legislative journey through the Chamber of Deputies before it can progress towards possible approval.
If enacted in its current form, it would represent a structural reversal for Brazil’s betting market: existing legal licences would disappear after 180 days and the regulatory framework would be replaced by a prohibition-and-enforcement model.
For licensed companies, the proposal adds another source of political uncertainty to an increasingly challenging regulatory environment.
Editó: @fonta
