Brazilian congresswoman Caroline De Toni has introduced Bill No. 5,153/2026, proposing a nationwide ban on online fixed-odds betting across the country.
The bill would cancel all existing federal betting licenses within 180 days of the legislation passing through Brazil’s Congress.
Operators would be granted an additional 90 days beyond that window to pay out prizes and return outstanding player balances.
Fines for violations could reach R$2 billion per infraction, with criminal penalties of between two and five years in prison.
De Toni’s proposal argues that since Brazil’s regulated betting market launched, online wagering has generated serious economic, social, and health concerns nationwide.
The Fiscal Bulletin of Brazilian States estimates an average monthly net transfer of R$4.7 billion from October 2024 to March 2026 flowing out of Brazilian households into betting platforms.
De Toni also points to a figure of R$62.5 billion in net resource expenditure on betting, representing approximately 0.68% of families’ gross national income available in 2025.
The bill covers sports betting, virtual events, and other forms of online fixed-odds wagering, though government-run lottery activities and fantasy sports would remain unaffected.
With Brazilian elections scheduled for 4 October 2026, covering positions from the presidency down to federal legislative assemblies, betting has firmly entered the country’s political conversation.
President Lula’s government has grown increasingly frustrated with the industry, with Lula stating in an interview with the Não Inviabilize podcast: “If no one shows me a social reason for these betting operations to continue, we have to put an end to them.”
The opposition PL party, which holds 91 of 151 opposition seats, has found unexpected common ground with the ruling PT government on the issue of betting regulation.
Flávio Bolsonaro has not yet fully decided on whether to include a betting ban in his agenda ahead of the October election, leaving the opposition’s position somewhat uncertain.
Just four months after the legal betting market was established in January 2025, the government banned all Brazilians receiving Bolsa Familia welfare payments from participating, excluding nearly 60 million people from the market.
The government is also reportedly considering banning betting companies from promoting their brands at federally-funded cultural events, adding further pressure to an already embattled sector.
Bill No. 5,153/2026 now moves into Brazil’s full legislative process, where Congress will review the proposed ban, the transition timeline, and the financial and administrative rules attached to it.
