Lula steps up his push against gambling after historic victory

Luiz Inácio Lula da Silva secured an election victory last night that strengthens his effort to annul the gambling regulation enacted in 2025. Lula won 51.75% of the vote and, following the result, introduced a Provisional Measure (PM) intended to repeal the Bets Law, in force since 1 January 2025, while the text is put to a vote in Congress.

What the president presented and when

President Lula announced the Provisional Measure during the 2026 election campaign with the aim of reversing the law that created the regulated gambling market in Brazil on 1 January 2025. The PM seeks to void the Bets Law immediately, but its validity now depends on parliamentary processing and judicial decisions.

The vote on the ban proposed by the Provisional Measure is scheduled to be submitted to the National Congress next week, according to sources cited in the original report.

Legal obstacles and parties involved

The Provisional Measure already faces challenges in the judicial and political spheres. An action questioning its legitimacy was filed at the Supreme Federal Court (Supremo Tribunal Federal) by deputies, senators and industry associations. The Associação Nacional do Jogo Legal (ANJL) filed an appeal at the Supreme Federal Court this week requesting suspension of the PM until a deeper review is carried out.

Bernardo Cavalcanti Freire, ANJL legal counsel, said at the SBC Summit that he considers the measure "completely illegal" and expressed optimism about the prospect of obtaining a judicial intervention that would return the market to its prior state:

"I’m very optimistic. I think that what happened is completely illegal. But if we can get an intervention, then all the lights will return automatically." — Bernardo Cavalcanti Freire, ANJL legal counsel

Luiz Felipe Maia, founding partner of MYLaw Advocates, said there are legal grounds to request an injunction because the PM was issued without a fiscal impact study. Maia also argued that the sector will need to negotiate regulatory concessions if it seeks a permanent reopening of the market.

Industry reaction and immediate impact

The announcement left operators and investors who had already committed to Brazil unclear about next steps. Martin Carlesund, chief executive officer of Evolution, said during the latest investor call that he was "flabbergasted" by the decision and described the measure as "a total negative for anyone in this business that happens in this way." Evolution and other suppliers are still assessing their presence and staff in the country.

Lula’s political turn makes the Congressional vote and the Supreme Federal Court rulings urgent. The process will determine whether the Provisional Measure succeeds in repealing the 2025 Bets Law or whether the regulated market remains in place while challenges are examined.

Next milestones

• Vote in the National Congress scheduled for next week on the PM.

• Pending rulings at the Supreme Federal Court following the ANJL’s filing.

• Public and private debates among operators, legal groups and authorities on conditions for a possible permanent reopening of the market.

Miguel Sandoval, Corresponsal de regulación.