(AsiaGameHub) –   Brazil formally introduced its regulated online betting and iGaming market at the start of 2025, ushering in a fresh chapter for the industry. Yet, just slightly more than a year on, the ruling party is now contemplating shutting it down.

Brazil Could Put an End to Its Online Gaming Framework

Following President Luiz Inácio Lula da Silva‘s recent comment that the online betting platforms legalized under his administration ought to be prohibited, PT congressman Pedro Uczai has introduced legislation to terminate the online gaming industry. This proposal is identified as Bill PL-1808/2026.

The legislation aims to repeal the digital gambling legalization enacted in January 2025, prohibiting all forms of online wagering, alongside gambling sponsorships, advertising for these services, and any financial transactions related to online gambling. In essence, the bill would revert Brazil to the period before online gaming was permitted.

Furthermore, the proposed law would mandate that authorities pursue legal action against anyone who breaks the ban.

Currently, 68 members of the governing party support the bill.

Uczai Expressed Concern About Gambling Harm

The justification for Bill PL-1808/2026 is the claim that online gambling has worsened Brazil’s issues with compulsive betting. Uczai pointed to increasing household debt, financial insecurity, and mental health problems as major consequences of the spread of online betting.

Uczai stressed that if betting leads to such damage, there is no justification for keeping it. He noted that, as another option, the government could implement a far more rigorous regulatory system if it concludes that betting has any utility.

Although President Luiz Inácio Lula da Silva has earlier indicated that legalizing online betting may have been an error, neither he nor any other high-ranking government official has endorsed the current bill. Therefore, Bill PL-1808/2026 remains solely a parliamentary proposal for now.

Analysts anticipate that Brazil is unlikely to completely reverse its position on online gambling, though it may strengthen its oversight of the sector. Nevertheless, should Bill PL-1808/2026 move forward, it would set its backers against numerous organizations, like the Receita Federal (federal revenue service), which supported the introduction of regulated online betting. Sports teams, facing the potential loss of sponsorship deals, are also expected to oppose the suggested ban.