Brazil's PT Files Bill to Ban Online Gambling Entirely Amid Election Uncertainty

A proposed federal ban on online gambling has been filed by the legislative caucus of Brazil's Workers' Party (PT), potentially putting billions in tax revenue at risk. The bill, which would repeal the entire regulatory framework built by the PT government, has not received an endorsement from President Luiz Inácio Lula da Silva.

Deputy Pedro Uczai submitted PL-1808/2026 to the Chamber of Deputies on Tuesday, backed by 68 PT lawmakers. The proposal would ban all gambling operations, including advertising and sponsorships, payment processing, and intermediary services.

The bill's language is broad enough to encompass any payment rail, including digital assets, making it a major concern for the crypto industry. ANJL, the national industry trade body, has called the proposal 'a great risk,' arguing that the regulated framework was designed to bring unregulated activity into a controlled environment.

The move comes ahead of October's presidential election and aligns with the PT's campaign slogan targeting 'betting.' However, it deviates from expectations of tighter regulation rather than a complete ban. The impact on tax revenue and social programs is significant, with the Receita Federal collecting 2.5 billion reais in gambling-related taxes alone in January and February this year.