Lula victory reignites fight over Brazil’s Bets Law after surprise win

Luiz Inácio Lula da Silva won Brazil’s presidency with 51.75% of the vote on 26 October 2026, and immediately pushed to repeal the country’s gambling framework by issuing a Provisional Measure to repeal the Bets Law. The Bets Law has governed Brazil’s gambling market since it came into force on 1 January 2025; Lula announced the Provisional Measure during his 2026 election campaign and the measure now faces scrutiny in the National Congress and the Supreme Federal Court.

What Lula has done and what happens next

The provisional executive measure seeks to undo the Bets Law established on 1 January 2025. The government must present the measure to the National Congress, where a vote is scheduled for next week. Parallel to the congressional process, industry groups and legislators have filed challenges at the Supreme Federal Court requesting suspension of the Provisional Measure pending judicial review.

The measure was introduced while Lula was campaigning in 2026. It followed his public argument that gambling has fuelled indebtedness and addiction in Brazil. The executive action bypasses the ordinary legislative timetable and therefore will receive heightened attention from Deputies and Senators when Congress votes.

Legal challenges and industry responses

The Associação Nacional das Loterias (ANJL) brought a legal challenge against the Provisional Measure earlier this week at the Supreme Federal Court, asking the court to suspend the measure until a full analysis is completed. ANJL’s Legal Counsel, Bernardo Cavalcanti Freire, told delegates at the SBC Summit that he views the measure as illegitimate.

“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 said at the SBC Summit.

Luiz Felipe Maia, Founding Partner of MYLaw Advocates, said there are legal grounds to seek an injunction because the measure was introduced without a fiscal-impact study. He also warned the industry may need to negotiate concessions to secure a permanent return of regulated activity, listing higher responsible-gaming standards and advertising restrictions as potential bargaining points.

Industry reaction and investor concern

Operators and suppliers reacted sharply. Evolution Chief Executive Officer Martin Carlesund described the decision as “a total negative” in his company’s investor call and said he was “flabbergasted” by the development. He said the company was working to protect staff and operations on the ground in Brazil but could not predict the final outcome.

The sudden executive move left companies that had committed capital and staffing in Brazil reassessing their positions. The Provisional Measure’s suspension or passage in Congress will determine whether licences and commercial plans made since 1 January 2025 remain in force.

Timing and procedural markers

Key dates and facts to watch:

• Lula’s victory: 26 October 2026, with 51.75% of the vote.

• Bets Law effective date: 1 January 2025.

• Provisional Measure issuance: announced during the 2026 election campaign; presented to Congress for a vote next week.

• Judicial challenge: ANJL filed an action at the Supreme Federal Court earlier this week seeking suspension.

For regulators, operators and investors the immediate signals are procedural: a congressional vote next week and simultaneous Supreme Federal Court review will decide whether the provisional executive measure survives to become law or is blocked.