Brazil Gambling Sector Faces Uncertainty Over Possible Online Casino Ban
Brazil’s online gambling industry could face major disruption if President Luiz Inacio Lula da Silva moves ahead with a provisional measure to ban online casino games.
Reports suggest the government is preparing an executive order that could be signed before the first round of the general election on October 4, 2026. Sports betting and sponsorship agreements would remain unaffected.
Casino games generate a large share of revenue for licensed operators, reaching up to 70% in some cases.
Neil Montgomery, founding and managing partner of Montgomery, stated:
If the provisional measure does come, we are going to have a lot of turbulence.
However, the measure would not automatically create a permanent ban. It would remain valid for 60 days, with a possible additional 60 days, and would ultimately require approval from Congress.
Montgomery said industry associations should prepare for a possible collective legal challenge, potentially at the Supreme Court. Operators were also advised to consider other legal options and prepare for a period in which online casino activity could be suspended.
Ashley Lang, CEO of Pragmatic Solutions, described the potential ban as a low probability but high-impact scenario.
