Brazil Lawmaker Proposes Ban on Online Betting Within 180 Days

Brazilian congresswoman Caroline De Toni has introduced Bill No. 5,153/2026, which proposes a nationwide ban on the exploitation, operation, promotion and facilitation of online fixed odds betting (or fixed-odds betting). The program would effectively dismantle the current regulated betting system and give existing federal licenses a 180-day grace period to be cancelled.

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The proposal includes wagering on sports and other events, virtual events, and online fixed-odds wagers. Other lottery activities conducted by the government would be exempt from the ban, and fantasy sports would be allowed to operate if the government issues regulations to prevent the format from being used to disguise fixed-odds betting.

Bill Would Prohibit Betting Operations and Promotion

The proposal’s Article 2 sets out a general ban on the operation, administration, commercialization or intermediation of fixed-odds betting. It would also forbid operating websites and brick-and-mortar venues that accept bets, handle financial transactions and advertise and sponsor operators.

The prohibitions would also apply to bonuses, rewards and loyalty schemes aimed at promoting gambling; and paid activities of affiliates and influencers. Content that promotes or encourages betting might also be limited. When no commercial relationship, remuneration or sponsorship exists from an operator, the following content would be excluded: Journalistic, Academic, Scientific and Educational content.

The government would also take action such as shutting down betting websites via internet providers, deleting betting apps from app stores, eliminating digital betting ads, blocking betting accounts and preventing financial transactions. Some measures would be applied to VASPs (virtual asset service providers).

180-Day Transition for Licensed Operators

The bill would ban fixed-odds betting operations in the federal district and in the municipalities, as well as in the states. Within 180 days, “regardless of the term originally stipulated in the corresponding authorization,” existing federal licenses would be canceled.

During the transition period, operators would not be allowed to take new wagers and new deposits. Platforms would get 90 days from the 181st day to pay outstanding prizes and return the players’ balances. They would allow their websites to be down only to withdraw winnings and conduct consultations and settle winnings.

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Administrative penalties would include warnings, fines, and/or suspension or blocking of means used to commit violations. The fines for companies can vary between 0.1% and 20% of the gross revenue from the fiscal year previously, with a maximum fine of R$2 billion per infraction. Fines could be up to R$50,000 per individual, up to R$2 billion per case.

The proposal would also include criminal penalties for any operation, organization, financing or maintenance of fixed odds betting following the transition period. Sentences would be 2-5 years and fines, with penalties up to two-thirds greater in cases of organized crime.

De Toni Cites Economic and Social Concerns

According to De Toni’s proposal, since the start of the regulated betting market in Brazil, the growth of online betting has already raised a number of economic, social, and health issues. One of the estimates mentioned is made by the Fiscal Bulletin of Brazilian States, which provides an average monthly net transfer of R$4.7 billion from October 2024 to March 2026.

According to the congresswoman, the figure of R$62.5 billion in net resource expenditure in betting reached about 0.68% of the families’ gross national income available in 2025.

She also claimed that “the betting market is now large enough to have a negative impact on decision-making by Brazilian families about consumption, saving and debt.”

Now the bill goes through the legislative process, during which Congress will examine its proposed ban, the transition, and its sweeping financial and administrative requirements.

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Source: SBC Noticias