Brazil prepares provisional measure to ban online casinos, sources say

Brazil prepares provisional measure to ban online casinos, sources say

On 17 September 2026, Reuters reported that Brazil’s government is preparing an executive order — a provisional measure (medida provisória) — to ban online casino operations. Sources familiar with discussions in the presidential office said President Luiz Inácio Lula da Silva is expected to sign the final text before the first-round elections on 4 October. The text is not yet signed or published; this note frames a reported preparation, not a law already in force.

What sources say would be spared — and what would not

According to two of the Reuters sources, the ban would not extend to sports betting or sports-club sponsorship deals. Licences granted last year cover both online casino games and sports betting; there are currently 188 authorised betting operators. Industry group the National Association of Gaming and Lotteries says gambling accounts for about three-quarters of operator revenue — so a casino-only cut would still hit licensed books hard even if sportsbooks stay open.

Adviser Bernardo Cavalcanti Freire told Reuters that compensation liabilities could reach 120 billion reais if licensed activities covered by paid concession fees are restricted. Treat that figure as the association’s estimate, not as a court award.

Tax take and Lula’s public line

Treasury data cited by Reuters show the government collected nearly 10 billion reais from betting fees and taxes last year. The Finance Ministry estimates Brazilians spend about 60 billion reais a year on betting.

Lula’s public line this week: discussions are ongoing; his personal position is to end betting; the government must act responsibly. A separate source told Reuters he “wants and will take action,” while talks with ministers continue. Local coverage such as Estadão has tracked the same preparation narrative ahead of the election calendar.

Why it matters for vault readers

Until an MP is signed and published, online casino products under Brazilian licences are not banned by this story. Do not invent which Vault houses would lose which products, claim URLs, or geo workarounds. The revenue mix point matters because most authorised operators run both casino and sports — sparing sportsbooks does not spare the P&L.

Pair this with the payment-enforcement update — [Brazil SPA Ordinance 2.750 bank blocks](/news/brazil-spa-ordinance-2750-bank-blocks) — and keep responsible play tools in view.

More desk notes: news, casinos, [Brazil SPA bank-block ordinance](/news/brazil-spa-ordinance-2750-bank-blocks), small print, responsible play.