Brazilian lawmakers propose amendments to exclude sports betting from gambling ban
Legislators have submitted 54 amendments to a provisional measure banning online gambling, with several seeking to allow sports betting.
Brazilian legislators have submitted 54 proposed amendments to Provisional Measure 1,394/2026, which bans online gambling, with several seeking to exclude sports betting from the prohibition.
Lawmakers have until October 13 to present more amendments to the National Congress.
The provisional measure, announced by President Lula da Silva on September 25, needs approval from a joint commission of federal deputies and senators within 120 days of its publication.
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At least seven parliamentarians have backed calls for the ban to be modified so that only online casino games are prohibited.
Federal deputies Marcos Braz, Julio Lopes, Pedro Aihara, Felipe Francischini and Julio Arcoverde, along with senators Marcos Pontes and Hiran Gonçalves, support this change.
Deputy Carlos Roberto Rodrigues, known as Bebeto, suggests allowing all gambling modalities that operated before the measure, while banning advertising, including naming rights for football stadiums.
Deputy Tabata Amaral does not propose allowing gambling but suggests an amendment to ensure people with gambling problems are directed to treatment via the public health system.
Other proposals include suggestions that fees paid by gambling companies for operating licenses be partially refunded.
No date has been set for congressional debate of the proposed measure.
The ban took immediate effect, with operators required to stop accepting deposits and all licensed betting websites and apps blocked from October 6.
Operators must return all player balances by October 14, even if customers do not actively request a withdrawal.
Finance Minister Dario Durigan said authorities are investigating roughly 40 high-value online gambling accounts for potential ties to money laundering and organized crime.
Durigan said some accounts contained more than R$500,000 (US$100,000), while others held upwards of R$1 million (US$200,000).
The suspicious balances were uncovered as the government arranged the return of R$1.325 billion (US$264 million) held by operators for approximately 26.5 million customers.
According to Ministry of Finance data, 1% of bettors account for 80% of the outstanding funds.
The 9th Civil Court of the Federal Justice of São Paulo granted a preliminary ruling to betting operator Stake, allowing its platform authorization to remain valid until October 25.
The decision means Stake will not face sanctions for maintaining its operations until that date.
Government lawyers confirmed they will appeal the decision.
Industry groups have asked Brazil’s Supreme Court to suspend the measure.
Commercial trade associations argue the sudden prohibition threatens billions in capital investment and thousands of domestic jobs.
Data suggests unlicensed and illegal markets have gained customers since the ban.
According to BetLegal, 575 unauthorized betting sites were identified on September 26, an increase of 74% from the day before.
Blask research found visits to licensed betting sites dropped by 74% in the week from September 26 to October 1.
Search demand for licensed operator brands dropped by between 82% and 83% over the same period.
Demand for unlicensed firms dropped by only seven percentage points to 17%.
Blask projects that around 21 million of Brazil’s 25.2 million legal bettors will continue betting with unlicensed sites.
Albert Simehnson, Deputy Chief Executive Officer at Super Technologies, said the current state does not reduce gambling harm.
He said it moves betting to platforms where people in Brazil will be less protected and taken care of, with far greater risk of addiction or other side effects.
Krasimir Spajic, CEO of Allwyn Digital, said banning activity does not make it stop.
He said it moves the activity to unregulated operators who do not pay taxes or follow responsible gaming measures.
Jack.com, a crypto sportsbook and casino operator, said the ban shows how quickly a regulated market can change.
The company said operators that treat a licence as a fixed asset are exposed.
It added that the lesson is the same regardless of the outcome, and operators should prepare for both now.
Isabelle Moreau is the editor of Novello Desserts and writes about family life and everyday living in Canada. The editor signs off on corrections and editorial standards.