Brazil’s Presidential Election Puts Online Casino Gambling in the Crosshairs

Online casino gambling in Brazil has increasingly become a talking point in the 2026 presidential election. The outcome of the October race could determine the future of the country’s 188 licensed betting firms.

Reuters reports that Brazilian President Luiz Inácio Lula da Silva, who ushered in online casino gambling during his second presidency, is now flip-flopping on iGaming in an attempt to win back supporters. Lula is reportedly set to sign an executive order in the coming weeks to ban iGaming, or online slot machines and table games.

While fixed-odds sports betting was legalized in 2018 when Jair Bolsonaro was president, a decision designed to tap into the country’s massive, underground market and capture billions of dollars in new tax revenue, sports gambling didn’t legally commence until 2024, a year after Lula returned to power. The six-year delay was due to political gridlock over a regulatory regime, allegations of political bribery, and a hard-fought effort from religious interests to repeal the gambling expansion.

Lula Changes Stance

After retaking the presidency in 2023, Lula embraced sports betting and added online casino gambling to the regulatory bill. Sports betting operations launched in 2024, and iGaming came a year later.

Brazil’s National Gambling Authority has since issued 188 internet sportsbook and iGaming licenses. The explosion of online gambling has led to societal concerns, with public opinion of the industry souring.

Some of Lula’s 2026 presidential election challengers, including former President Bolsonaro’s son, Flávio Bolsonaro, have discussed banning online casinos. With polls showing growing concerns about the economy and the potential impact of gambling on domestic consumer spending, Lula’s campaign has recently embraced a pledge to scale back gambling.

Reuters reports that the president’s executive order would apply only to online casino gambling, allowing sports betting to continue.

The National Association of Gaming and Lotteries, a trade group representing the industry, says the rescinding of iGaming licenses must result in compensation for impacted operators.

Gambling Losses

Brazil’s Finance Ministry estimates that Brazilians gamble 60 billion reais (US$11.7 billion) a year. The Brazilian government reports that among its residents who have an income, the average household income in 2025 was approximately 40,400 reais (US$7,858).

Brazil collects 12% of each online betting operator’s gross gaming revenue. The country additionally requires gamblers to give 15% of their betting winnings to the government.

Upon signing the iGaming and sports betting regulatory bill, Lula said the government projected to receive over $2 billion a year in additional tax revenue from the expanded gambling.