Lula Re-Elected: Brazil's Online Betting Ban Stays in Place

Luiz Inácio Lula da Silva has won a fourth term as Brazil's president. His victory keeps the online betting ban he imposed in September firmly in place.

Brazil's Superior Electoral Court confirmed the result on Oct. 25. Lula took 51.79% of the valid votes to defeat Senator Flávio Bolsonaro. Licensed operators now have two possible paths back into the market. One runs through Congress, which must approve Provisional Measure 1394 (MP 1394) to make the ban permanent. The other is the Supreme Federal Court, which is weighing industry challenges to the ban.

Brazil's Betting Ban Took Effect in Weeks, and Lula Won't Budge

Lula signed MP 1394 on Sept. 25, and it took effect the same day through a special edition of the official gazette. Betting sites and apps went offline on Oct. 6. Operators' federal authorizations expired on Oct. 25, the day of the runoff.

Lula doubled down on the ban during a YouTube livestream on Oct. 22. "The betting sites won't be coming back," Lula said. "Anyone who wants to earn money should go to work." The National Association of Games and Lotteries (ANJL), an industry group, reported more than 3,500 job losses as of Oct. 13.

MP 1394 Stalls in Congress Ahead of Its Nov. 23 Deadline

Provisional measures in Brazil carry the force of law immediately. They lapse, however, if Congress doesn't approve them in time. MP 1394 is valid until Nov. 23. If Congress hasn't finished voting by then, the deadline automatically extends once for another 60 days.

First, a joint committee of deputies and senators must review the measure. Congress named its members on Sept. 30. Yet as of Oct. 23, the committee still had no chair or rapporteur, the lawmaker who drafts its report.

Starting Nov. 9, MP 1394 will lock the agenda of whichever chamber is reviewing it, holding up most other votes until lawmakers act.

Lawmakers have filed 99 amendments, which were published in the congressional record on Oct. 15. Some would keep sports betting legal while banning online casino games.

Supreme Federal Court Ruling Could Come Before Congress Votes

The industry is also fighting the ban in Brazil's Supreme Federal Court. Trade groups Anseja and ANJL have filed two direct actions of unconstitutionality, a type of lawsuit that asks the court to strike down a law. The cases, ADI 8024 and ADI 8027, ask the court to suspend MP 1394 in full. They also seek to restore the regulated market that existed before the ban.

Justice Luiz Fux is overseeing both cases as rapporteur. He had scheduled his decision for after the presidential runoff, which has now passed. That ruling could arrive before Congress acts on MP 1394. With a new term starting in January 2027, Lula's government will keep defending the ban in both arenas. Some operators aren't waiting: Flutter has already halted its Brazilian operations.