Brazilian Lawmakers Propose Alternatives to Full Betting Ban

With the deadline for proposed Congress amendments to Brazil’s controversial Provisional Measure (MP) No. 1,394/2026 now over, many submitted updates aim to temper or even fully reverse the harsh legislation. With thousands of jobs at risk, rising discontent among sports leagues and broadcasters, and several pending lawsuits, the industry is awaiting the results with bated breath. Many Suggestions Aim to Reverse Or Limit the Ban President Lula’s MP No. 1,394/2026 suddenly banned all types of fixed-odds betting in Brazil, sending the country’s industry into turmoil. However, the measure is not final and is now facing scrutiny in Congress, where lawmakers can propose amendments. So far, a staggering 92 suggestions are heading to be reviewed by the joint committee. Notably, all of the amendments would alter the original measure. However, their impact varies. Some aim to reverse Lula’s ban and fully restore the gambling market. For example, amendments 61 through 64 restore operator licenses and instead impose stricter regulations on advertising, responsible play, technology provider registration, and gambling harm detection and prevention. Another collection of suggestions would ban casino-style gambling while maintaining the sports betting market. This compromise approach envisions tighter rules on sponsorships, brand placement on uniforms, and the use of AI in marketing. Beyond banning casino games, some suggestions also prohibit bets on individual in-game events to help protect the sport’s integrity. Brazilian Bettors May Turn to Black Market Operators Not all suggestions were clear-cut. Some proposed amendments even go the other way, making it impossible to reverse the gambling ban through an administrative act. However, many of the stricter suggestions concede that re-opening the market is possible. Some envision time limits on wagering, or bans on certain types of bets. Others propose session limits, affordability checks, and risk-management systems. Overall, most lawmakers recognize that a ban will not make demand for betting suddenly disappear. Instead, Brazilians will migrate to offshore operators that often lack critical consumer protections, have insufficient money laundering safeguards, and contribute no tax revenue. This likely means MP No. 1,394/2026 will undergo significant changes, though many industry stakeholders fear the damage may already have been done. The National Association of Games and Lotteries (ANJL) revealed that over 3,500 workers have already been laid off as operators aim to cut costs amid ongoing uncertainty. The association estimates that job cuts could reach 5,600 within 90 days. The nation could also lose about $14.7 billion in tax revenue and face lawsuits from affected operators.