Brazil may be on the verge of a dramatic shift in gambling policy as President Luiz Inácio Lula da Silva prepares to sign a provisional measure targeting the sector.
Local media reports indicate the decree would go further than originally anticipated, covering not just online casino games but also fixed-odds sports betting.
The announcement was scheduled for 5pm local time in São Paulo on 25 September 2026, marking a significant escalation in Lula’s campaign against the gambling industry.
Stakeholders received an invitation from the Ministry of Finance to what was described only as an “Announcement of Economic Measures,” with no direct mention of betting.
The deliberate vagueness of the invitation has added uncertainty to an already tense situation, leaving industry participants speculating about the true scope of any incoming measures.
The provisional measure, known as an MP, is being drafted by the Casa Civil, the office of the president’s Chief of Staff, according to reports from local media sources.
Neil Montgomery, founding partner of Brazilian law firm Montgomery, offered a stark warning about the potential fallout from such a move.
Speaking on a recent iGaming Market in Focus: Brazil webinar, Montgomery said: “If the provisional measure does come, we are going to have a lot of turbulence.”
Montgomery also stressed that any ban would not be straightforward for Lula to implement unilaterally, pointing out that congressional support would be essential to make it stick.
“It’s not that Lula by himself can totally ban. He will have to rely on the support from Congress,” Montgomery noted during the same webinar appearance.
Montgomery later shared the Ministry of Finance’s invitation on LinkedIn, drawing attention to the contradiction between Lula’s current stance and his previous legislative actions.
He pointed out that it was Lula himself who drove the legislative process behind Law 14,790/2023 and the creation of the SPA, a regulatory body for the sector.
“It is frustrating to see our country leader create such legal uncertainty for our beloved country with his change of mind in such a short period of time,” Montgomery wrote in the post.
The situation reflects broader tensions between Brazil’s growing regulated gambling market and political pressure to curtail the industry at the highest levels of government.
Should the provisional measure pass and receive congressional backing, it would represent one of the most significant reversals in Brazilian gambling policy in recent years.
