Brazil’s PT Party Proposes Bill to Abolish Online Gambling Law

(AsiaGameHub) –   The PT government’s legal arm is calling on Congress to repeal the Bets Law, but where is Lula’s endorsement? 

The legislative caucus of Brazil’s Workers’ Party (PT) has tabled Bill PL-1808/2026 with Congress, calling for a complete federal ban on “online gambling”.

The proposal, formally introduced by PT deputy Pedro Uczai, demands the full repeal of all laws and regulatory provisions for online betting established under the Bets Law (PL 2626/2023), the regulatory framework that has been in effect since January 1, 2025.

The proposed federal ban would cover the entire gambling structure created by the Bets Regime, as the bill’s text includes all activities tied to running an online gambling platform, including advertising, sponsorships, payment processing and any intermediary services connected to gambling operations.

The bill leaves little ambiguity about the scope of its ban, stating: “This Law prohibits, throughout the national territory, the exploitation, operation, offering, availability, promotion, advertising, intermediation and processing of transactions related to fixed-odds betting.”

Backed by 68 PT members, the measure calls for the removal of betting apps and websites, the blocking of financial transactions linked to gambling, and strict penalties for operators, affiliates and service providers found violating the prohibition.

The bill is submitted to Congress as an emergency measure developed and supported by the PT government’s legal branch as a public protection effort “to stop the public health and economic harms linked to gambling”.

Bets Law viewed as an economic harm

As the bill’s sponsor, Uczai stated that it is the PT government’s responsibility to address “rising household debt, financial instability and mental health issues” that have emerged following the creation of Brazil’s online gambling market.

“If betting causes the harm we believe it does, why don’t we just eliminate it entirely? Or regulate it to cut down on the volume of betting in Brazil, allowing a limited number of operations if they even serve any public purpose,” Uczai told Congress.

Though submitted to Congress, the bill does not carry the signature of President Luiz Inácio Lula da Silva or senior federal government members, making clear the proposal remains a parliamentary initiative rather than an official executive policy.

Campaigning for a fourth presidential term, Lula has repeatedly spoken out against the Bets regime, noting as recently as last week that if the decision were entirely his, he would move to ban online gambling outright.

However, this rhetoric is widely interpreted as campaign positioning, aligned with PT’s “3B slogan” — which calls for higher taxation of bankers, billionaires and betting operators.

Political observers had instead expected PT to take a more measured approach, where Lula would leverage the party’s senior ranks to tighten the existing regulatory framework rather than dismantle it entirely.

This expected approach included direct adjustments to the final legal terms of the Bets regime, such as backing a federal ban on gambling advertising, strengthening consumer protection safeguards, and formally classifying gambling addiction as a public health issue.

When introducing the bill, Uczai made no reference to support from senior PT government leadership, confirming the proposal remains a parliamentary initiative rather than a coordinated executive action.

Where is Lula?

A full repeal of the Bets regime would put Luiz Inácio Lula da Silva and the PT government on a collision course with key Brazilian institutions.

Chief among these is the Receita Federal, Brazil’s federal tax authority, which has backed the regulated framework and projects up to R$13bn (£1.9bn) in gambling-related revenue for 2026 — funds seen as critical to sustaining PT’s social and welfare programs.

Backing a federal ban would also spark resistance from Brazil’s football leagues and major media groups, both of which have grown increasingly reliant on high-value sponsorship deals tied to the betting sector.

As noted last week by SBC Noticias Brazil: “such a move would carry significant fallout, effectively restarting a legislative process that took more than a decade to complete, while risking conflict with stakeholders across tax revenues, media and sport. 

The question remains: does the PT government want to take the entire betting regulatory process back to ground zero?”

A full repeal of the Bets regime would also see Lula abandon key policy measures established under the framework, including regulatory oversight of the SPA and the rollout of Brazil’s national self-exclusion scheme, which is currently being piloted at the federal level.

Most significantly, pushing for a ban risks internal friction within PT and Congress itself. The Bets regime was authorized under Lula’s administration, and is viewed as the culmination of a decade-long policy effort. 

As developments unfold, it remains unclear whether Lula and PT’s senior leadership will endorse Bill PL-1808/2026, or whether the proposal is just more political posturing from the party ahead of Brazil’s October election.