Brazil: Bill proposes ending regulated betting market within 180 days

Federal Deputy Caroline de Toni has introduced a bill in Brazil that proposes to terminate the regulated fixed-odds betting market within a 180-day transition period. If passed, existing licenses for authorized operators would expire, and companies continuing to offer online betting would face fines of up to R$2 billion.

The legislation aims to restrict the sector by imposing obligations on financial institutions to block transactions for illegal operators and requiring social media platforms to prevent advertisements for prohibited betting services. The proposal is driven by concerns regarding household debt and the economic impact of gambling.

According to the Instituto Justiça Fiscal, the impact of betting on Brazil's GDP is estimated at 1.1 percentage points, which is significantly higher than the projected impact of US tariffs. The institute reports that betting drained approximately R$141 billion from the Brazilian economy in 2025, representing over 40% of the country's economic growth for that year. Furthermore, the institute notes that while platforms collected roughly R$9 billion in taxes, the loss to public coffers is estimated between R$22 billion and R$46 billion.