“A slap in the face” – Gambling industry reacts to Brazil ban

On Friday, President Luiz Inácio Lula da Silva signed a provisional measure banning iGaming and fixed-odds sports betting. The announcement created waves across the industry, as the Government is expected to proportionately refund the licensing fees authorized operators paid to operate in the country. 

Said fees were purchased for BR30m ($5.8m) and, according to regulatory specialist Felipe Bondezzan, refunding them would create an "immediate, unbudgeted multi-billion-real deficit for the Federal Government." 

The news triggered a worldwide debate, as industry leaders and regulatory experts took to LinkedIn to warn that the ban will not only fuel the black market, but some believe the decision is a sign legal certainty is fading. 

No industry will ever react well to a complete ban; however, we've rounded up some of the most notable and insightful reactions. 

Slow and steady typically wins the race 

One of the main reasons for the sudden ban, not even two years since gambling was legalized, could have been the many aggressive marketing strategies adopted to promote the industry.  

From massive betting sponsorships with football clubs to advertising during one of Brazil's most traditional Carnivals, the public was getting fed up with gambling everywhere they looked. 

Furthermore, some influencers began selling the pastime as a "get-rich-quick scheme," promoting games that were "bugged," claiming that the player could become a millionaire if they just kept playing. Although these games were largely unlicensed, it shaped public opinion on the industry as a whole. 

CEO of Casumo Francesco Postiglione described the social contract between people and public stakeholders as a "sugar curve." 

As marketing increases, public officials start implementing limitations and the curve decreases. However, in Brazil, the curve has collapsed. 

Postiglione writes: "Sad to see that our industry, despite it saw this coming from far away, once again decided to keep the foot on the pedal.” 

Since January 2025, the Brazilian market has represented quite the conundrum for operators and suppliers. Robert Jones, an international legal and regulatory expert with more than 20 years of experience in the gambling industry, advised against entering the Brazilian market before news of the ban. 

Jones highlighted how, despite being a substantial commercial opportunity, he was "never persuaded that Brazil's political commitment to online betting and gaming was sufficiently settled" to justify the costs of entry. 

Is there cause to panic?  

In an open letter, Ivo Doroteia, CEO of Lotus iGaming Group, highlighted the fact that the ban is, from a legal standpoint, a provisional measure and is yet to be converted into law. 

Therefore, the measure has a 60-day validity period, with the possibility of renewal for an equal period, before the National Congress makes a final decision.  

Because of this, Doroteia believes there is no need to panic, stating in his three-page open letter: "Calm. Read the text. Study it. Understand its effects. And use the democratic, legislative and judicial mechanisms provided by the rule of law." 

Despite his faith in the country's institutions, Doroteia also questions the effectiveness the ban will have in protecting citizens' best interests.  

Many experts have pointed to the potential growth of illegal gambling following the decision. Christina Savvouri, Enterprise Partnership Lead at Mindway AI, reflected on the harm prohibition could do to the country, recounting her experience in Cyprus when she was growing up. 

Savvouri wrote:  "I’ve seen what happens when society’s response to vice becomes “we don’t allow that here.” The behaviour does not disappear. It simply disappears from view but continues to harm." 

“Not only stealing the lollipop but also slapping the child” 

Although this provisional measure will mostly affect the gambling industry, Neil Montgomery, gaming regulatory expert and Global Gaming Insider contributor, is concerned it opens the gate for something far worse. 

Montgomery likened the news to "the regulated gaming industry being guillotined by the stroke of a pen." According to the lawyer, the decision wipes away the regulatory framework built to provide necessary safeguards for a healthy and stable market through an "illegal presidential act." 

Montgomery sends a chilling warning to the Brazilian people: "Lula's actions transcend the gaming industry, as it is a clear sign that legal certainty is fading in our country."