Brazilian Senator Carlos Fávaro of the Social Democratic Party (PSD-MT) has introduced legislation that would prohibit fixed-odds betting across the country. The proposal would ban the operation, promotion, advertising, sponsorship, and intermediation of betting services in both physical and online environments.
Bill 4.977/2026 would apply to fixed-odds betting offered by operators based in Brazil and abroad. However, the measure would not affect other lottery categories governed by separate legislation.
Bill Would Revoke Existing Betting Rules
The proposed legislation would revoke provisions of Laws No. 13.756/2018 and No. 14.790/2023, which currently provide the legal framework for Brazil’s fixed-odds betting market.
Fávaro announced the bill during a speech on the Senate floor on August 12. If approved, the proposal would significantly change the regulatory framework that currently governs licensed betting operators in Brazil.
The bill would also introduce a transition period for operators that already hold valid authorizations. These operators could continue offering services until their existing licenses expire, but they would not be able to renew them.
Moreover, no existing authorization could remain valid for more than five years after the law’s publication.
New Authorizations and License Expansions Would Stop
The proposal would prohibit the government from granting new betting authorizations or expanding existing licenses from the date the law takes effect. However, authorities could still consider applications submitted before that date.
Operators would also have no right to compensation for lost profits or unrealized profitability expectations following the termination of their authorizations.
If passed, the legislation would take effect 90 days after its official publication.
Senator Cites Social Risks of Betting
Fávaro said his decision to introduce the bill followed accounts from families affected by betting during visits to municipalities in Mato Grosso. He also cited research conducted across seven municipalities to support his proposal.
According to the senator, nearly 86% of respondents identified online gambling as a problem affecting either their families or social circles.
Fávaro argued that the findings demonstrate widespread concern about the social impact of online betting. He also questioned whether regulation alone can adequately address these risks.
Proposal Highlights Gambling-Related Harm
In the bill’s justification, Fávaro argues that the rapid growth of fixed-odds betting has created social risks that current regulations cannot adequately address.
The proposal points to several potential harms, including compulsive behavior, indebtedness, pressure on household income, and mental health concerns.
Fávaro also highlighted the accessibility of digital betting platforms and the speed of online financial transactions. According to the senator, these characteristics make prohibition necessary to protect public health, families, and Brazil’s economic order.
If the bill advances, it could represent a major shift in Brazil’s recently established regulated betting market. The proposal would not only restrict new market entry but could also eventually eliminate licensed fixed-odds betting once existing authorizations expire.
