Brazil: Congress Reviews Provisional Changes to Betting Laws

Lawmakers Propose Changes to the Bet Ban

The provisional MP signed by President Luiz Inácio Lula da Silva went into effect immediately, but still needs to be reviewed by the National Congress. The measure has an initial validity of four months and must be voted on within 120 days to become permanent.

The postponement of the deadline for submitting amendments allowed new proposals to be officially filed after the first round of elections. Initially scheduled to end the previous week, the deadline was extended until October 13.

Among the proposals presented, some seek to directly alter the scope of the ban and preserve part of the regulated betting market.

Amendment Proposes Removing Bets from the Ban

One of the new amendments, presented by Deputy Bebeto (PP-RJ), proposes removing betting from the ban, but establishes restrictions on advertising for companies in the sector.

The proposal includes limitations related to the commercial exploitation of sports assets, such as acquiring naming rights for soccer stadiums.

In justifying the initiative, the lawmaker argued that a broad ban could favor the illegal market.

"International experience and Brazil's own recent trajectory show that a broad ban does not eliminate the demand for betting. It merely drives the bettor to unauthorized platforms based abroad."

The discussion once again highlights one of the main issues faced by regulated markets: the possibility of users migrating to offshore operators when legal offerings are restricted.

Sports Betting May Be Separated from Online Casinos

Another front of discussion in Congress involves differentiating between fixed-odds sports betting and online casino games.

Several lawmakers have presented amendments to specifically remove sports betting from the scope of the MP. Among them are Deputies Marcos Braz (PSDB-RJ), Julio Lopes (PP-RJ), Pedro Aihara (PP-MG), Felipe Francischini (Podemos-PR), and Julio Arcoverde (PP-PI), as well as Senators Marcos Pontes (PL-SP) and Hiran Gonçalves (PP-RR).

The proposal to separate the two segments also appears in the electoral debate. Senator Flávio Bolsonaro (PL-RJ) defends banning online casinos while maintaining sports betting.

This differentiation could have a direct impact on the future of the Brazilian market, which underwent a process of regulating fixed-odds betting prior to the current attempt at a ban.

Betting Sponsorships Also Enter the Discussion

Another amendment presented in Congress provides for a transition period for advertising contracts between soccer clubs and betting companies.

The measure addresses a relevant commercial issue for Brazilian sports, as bets have become one of the main categories of soccer sponsors in recent years.

With the potential maintenance of the ban, clubs and operators would have to interrupt or renegotiate contracts signed under the previous regulatory framework. The possibility of a transition would therefore allow existing agreements to be phased out gradually.

Refund of Amounts Paid by Operators

The proposed measures also include a direct impact on companies that received authorization to operate in the Brazilian market.

One of the amendments suggests the refund of part of the amounts paid by betting companies to obtain their operating licenses. This discussion arises after operators have already made investments and paid fees related to the government-granted authorization to operate in the regulated market.

Congress Still Needs to Define the MP's Legislative Path

Despite the increase in the number of amendments, congressional leadership has not yet defined the analysis schedule for the measure, nor the lawmakers who will chair and report on the joint committee responsible for the text.

The next step will be to evaluate the different proposals and define which ones can be incorporated into the MP during the legislative process.

At the same time, a second line of proposals seeks to reinforce user protection measures. Deputy Tabata Amaral (PSB-SP) introduced an amendment establishing that the Unified Health System (SUS) must provide comprehensive care to individuals with gambling-related problems and their families.

Future of the Regulated Market Remains Open

The quantity and diversity of the presented amendments show that the ban on bets is far from representing a definitive legislative scenario.

Proposals range from removing sports betting from the ban to rules on advertising, sponsorship contracts, reimbursement of amounts paid by operators, and responsible gambling policies.

For the international betting market, the process will be closely monitored, especially since Brazil had established itself as one of Latin America's markets with the highest potential.

The processing of the MP could therefore determine whether the country will move toward a broad ban on betting or if Congress will choose to preserve some level of legal operation—especially for sports betting—maintaining control, taxation, and consumer protection mechanisms.