A bill has been introduced in Brazil's Chamber of Deputies proposing to completely remove online casinos from the legal market. The initiative was put forward by government coalition leader Paulo Pimenta.
The main goal of the document — is to leave only fixed-odds sports betting in the legal segment and declare all games of chance based on random number generators illegal. At the same time, full-scale regulation of the market in the country was launched less than two years ago.
If the law is passed, both the operation of the platforms themselves and any advertising of them will be banned.
What exactly they want to ban
Lawmakers propose clearly separating betting and casino games:
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Classic video slots: online slots from any providers.
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Crash games: formats with an increasing multiplier such as Aviator.
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Instant games and lotteries: scratch cards, mines games, and titles such as Fortune Tiger.
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Any promotion: influencer advertising, banners, streams, and sponsored integrations of casino products.
The authors of the initiative emphasize the psychological factor: slots and crash mechanics with rounds lasting just a few seconds encourage continuous play and rapid loss of funds, unlike sports betting, where the user waits for the outcome of a match.
Why the authorities reversed course and what the industry says
The bill was prompted by rising household debt. Lawmakers said that after legalization, the number of microloans in the country increased sharply: instead of making purchases and paying bills, people began spending their money in casino apps.
Legal operators and industry associations strongly opposed the initiative. Their main arguments:
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Slots generate 60–70% of revenue: sports betting alone will not allow platforms to cover high taxes and the costs of operating legally.
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Licenses have already been paid for: companies paid 30 million reais each for five-year permits, investing hundreds of millions in local infrastructure.
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Players moving into the gray market: a ban will not stop users — the audience will simply move to unlicensed offshore sites without checks or limits.
What happens next
The bill has only just been submitted for consideration by the relevant committees. Financial disputes and a legal review of the document still lie ahead.
The law is unlikely to be passed quickly: the government's economic team opposes it because it needs the tax revenue. But the appearance of such a document — is a clear signal to the market. Even if the bill is rejected, the regulator will most likely tighten the rules: introduce strict deposit limits and strengthen oversight of advertising and payment systems.
