Congress Reviews Provisional Ban on Online Betting in Brazil

Provisional Measure Prohibiting Online Betting Awaits Congressional Review

The Provisional Measure was signed by President Luiz Inácio Lula da Silva on September 25 and initially established a 60-day validity period, with the possibility of a single extension for an equal period.

With Alcolumbre's decision, the text remains in effect until March 2027, taking into account the suspension of timeframes during the parliamentary recess. However, for the prohibition to become permanent, the measure must be approved by the National Congress before its expiration.

The proposal has already received 99 parliamentary amendments and had its fast-track processing approved on Monday, November 9. Nevertheless, it still depends on the formation of a joint committee, composed of deputies and senators, responsible for analyzing its content.

The text mandates the termination of authorizations to operate online betting within Brazilian territory, the blocking of websites and applications, and the refund of available balances in users' accounts.

Betting Sector Faces Legal Uncertainty

The federal government's initiative faces resistance from betting companies and challenges regarding its constitutionality. Representative entities of the sector have turned to the Supreme Federal Court (STF) to contest the measure, arguing against the prohibition of the activity.

Justice Luiz Fux ordered the suspension of lower-court lawsuits related to the Provisional Measure until the Supreme Court examines the matter. The decision aims to prevent conflicting interpretations among courts while the Court evaluates the constitutional validity of the ban.

The previous week, Fux also conducted a public hearing on the subject, bringing together various representatives and experts to discuss the impacts of the measure.

Government Maintains Favorable Stance Toward the End of Betting Platforms

President Lula once again publicly defended the prohibition of online betting in a speech delivered on Sunday, November 8. According to the Chief Executive, halting the activity is contributing to an increase in household consumption and benefiting commerce and industry.

"The end of 'bets' is already generating a positive impact on the economy. Without spending on bets, families have increased consumption, commerce sells more, industry produces more, and the wheels of the economy start turning again," stated Lula.

The president also declared that betting platforms "have destroyed lives and need to remain in the past."

The extension of the Provisional Measure therefore prolongs the scenario of uncertainty for the Brazilian betting market, as the National Congress and the Supreme Federal Court prepare to evaluate the next legislative and legal developments of the ban.