Brazil Backs Bill to Prohibit Online Casino Games

Brazil.- 31 July 2026 www.zonadeazar.com The government of President Luiz Inácio Lula da Silva and members of the Workers’ Party are expected to intensify support for legislation seeking to prohibit online casino games in Brazil while preserving the regulated fixed-odds sports betting market.

The debate will resume when the National Congress returns from its winter recess on 3 August, with attention focused on Bill PL 2,258/2026, introduced by federal deputy Paulo Pimenta.

News Details

The bill would prohibit the operation, supply and advertising of games of chance whose outcomes are generated by electronic systems or algorithms and which are offered digitally or through the internet.

It would repeal the provision of Law 14,790/2023 that authorised betting on virtual online gaming events. However, it would retain the regulated framework for fixed-odds wagering on real sporting events and official lotteries.

The proposed prohibition would also apply to platforms headquartered outside Brazil when their services are accessible to users in the country, regardless of the currency or payment method involved.

Beyond preventing the operation of the games, the legislation would restrict their promotion and supply, potentially affecting operators, content providers, affiliates, influencers and other businesses involved in online casino marketing.

Industry Context

The initiative focuses particularly on digital slot games and the so-called Jogo do Tigrinho, the Brazilian name commonly associated with Fortune Tiger. The title has become a symbol of the wider public debate surrounding financial losses, influencer advertising and access to unlicensed gambling platforms.

The bill’s author argues that online casinos create a greater risk of addiction because their outcomes are determined by algorithms, unlike sports bets based on independently verifiable external events.

The proposal reflects a marked hardening of the political narrative surrounding digital gambling. Lula had previously supported the possibility of regulating land-based casinos as a source of tourism, investment and tax revenue. The current debate places greater emphasis on household debt, consumer protection and the perceived social harm associated with online games.

The government also strengthened betting-advertising requirements during July, extending responsibility to operators, agencies, influencers and digital platforms and introducing mandatory warnings about gambling-related risks.

Next Steps or Impact

PL 2,258/2026 is awaiting a decision from the President of the Chamber of Deputies regarding its legislative route and the committees that will examine it. To become law, it must be approved by both the Chamber and Senate before receiving presidential assent.

Approval would substantially reshape the Brazilian market regulated since January 2025. Operators could retain sports betting but would lose a central vertical of their platforms, while suppliers of slots and other algorithm-generated games would be excluded.

The measure could also affect tax receipts, investments made to obtain licences and the competitive balance between authorised businesses and illegal platforms. Industry participants will need to monitor the political negotiations closely, as Congress is simultaneously considering more than 200 proposals seeking to restrict or amend the Bets Law.

Edited by: @_fonta

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