Brazil Bill to Ban Online Casino Games Threatens Video Poker Under RNG Ban

Brazil’s National Congress returns from winter recess on 3 August, and the administration of President Luiz Inácio Lula da Silva is expected to push aggressively for a bill that would prohibit online casino games whose outcomes are generated by electronic systems or algorithms. If passed, the measure — Bill PL 2,258/2026 — would remove most digital casino offerings from the country’s regulated betting market, a move that industry observers say would almost certainly include video poker.

The bill, introduced on 7 May by PT deputy Paulo Pimenta, seeks to overhaul Brazil’s Bets Law, the framework that has governed online gambling since 1 January 2025. The current law permits both fixed-odds sports betting and a range of online casino games. PL 2,258/2026 would strike the provisions that allow casino-style games while leaving sports betting untouched. Its text explicitly targets games “whose outcomes are generated by electronic systems or algorithms”, a definition that covers slots, blackjack, roulette and video poker — any game that depends on a random number generator (RNG) rather than a real-world sporting event.

Lula’s shift in stance

President Lula has described himself as “no friend of gambling” and has repeatedly voiced concern that the current regulated environment lacks proper oversight and protection for low-income Brazilians who gamble beyond their means. In 2024, Lula had expressed openness to regulating land-based casinos, citing potential tourism and tax revenue. But with a general election approaching, the government’s rhetoric has hardened. Communications Minister Sidônio Palmeira has identified betting as a topic that generates strong concern among evangelical voters, a key constituency.

According to Brazilian media outlet Poder360, the bill is part of Lula’s electoral strategy to present a tougher stance on gambling. The government is also expected to step up enforcement against the so-called “Jogo do Tigrinho” (Fortune Tiger) phenomenon, a term that has become shorthand for illegal gambling, financial losses and influencer-driven promotion of unlicensed websites.

How video poker fits in

For operators and players focused on video poker, the bill’s language is unambiguous: any game whose result is determined by an electronic algorithm would be prohibited. Video poker, while involving player strategy, relies on RNG to determine card outcomes. If PL 2,258/2026 becomes law, video poker would no longer be available through licensed Brazilian operators, unlike fixed-odds sports betting or potentially live poker where outcomes come from real-world events rather than software.

The Bets Law had opened the door for video poker to be offered legally in Brazil for the first time. A ban would reverse that access, affecting both domestic-facing platforms and international operators that hold Brazilian licences.

Legislative outlook and competing bills

Since Brazil’s regulated market launched, Congress has received more than 200 legislative proposals dealing with gambling. Of those, three have gained traction. Besides PL 2,258/2026, there is PL 1,808/2026, which would repeal the entire regulated betting framework. A third track focuses on tightening advertising, sponsorship and influencer marketing restrictions. Political bargaining is expected as blocs in Congress weigh the future of online gambling ahead of the election.

PL 2,258/2026 currently awaits assignment to a committee by the Chamber of Deputies Speaker. If it passes both houses, it would go to President Lula for assent. The outcome remains uncertain, but the government’s intensified push signals that a ban on online casino games — and by extension video poker — is a live possibility.

Key facts

What this means for video poker readers

While the site’s core audience is primarily US-based, Brazil’s regulatory direction can influence global market norms and operator strategies. Several international video poker developers and platform providers have sought Brazilian licences. A ban would remove one of the few regulated Latin American markets for video poker, potentially affecting availability of certain game titles and shifting operator attention back to the US, Canada and parts of Europe. Players with Brazilian residency or accounts on licensed sites would lose access to video poker entirely if the bill passes.

The legislative calendar is packed, and the outcome is far from certain, but the political weight behind PL 2,258/2026 makes it a development worth monitoring. For now, video poker remains legal under Brazil’s Bets Law, but that status could change within months.

Source: SBC News – https://sbcnews.co.uk/featurednews/2026/07/30/lula-brazil-pt-government/