Lula Bans Online Gambling in Brazil Days Before Presidential Election
Brazil's President Luiz Inácio Lula da Silva has signed a provisional order banning online sports betting and online casinos, just over a week before the first round of the country's presidential election, in which he is seeking a fourth term.
The order, signed on Friday, prohibits all sports betting and online casinos. Bettors and bookmakers have until 5 October to withdraw funds held in online betting accounts, and new deposits have already been barred. Separately, Lula signed a bill creating criminal offences related to fixed-odds betting, the most common form of online sports wagering. Both measures must be approved by Brazil's Congress within 120 days to remain in force.
Online betting was legalised in Brazil in 2018, during the administration of former president Michel Temer, and has grown rapidly since. Most other forms of gambling, including casinos and slot machines, remain illegal in the country.
In a statement posted on X, Lula said that under the previous government the sector had expanded "without regulation", adding that there were "no restrictions" in place, particularly to prevent children and teenagers from accessing online betting. "We won't allow betting companies to profit at the expense of Brazilian families' income and lives," he said.
Describing the industry as a "cancer", the president said: "Either we remove the tumour, or it kills us." He said he had heard from families who had sold their household possessions because of gambling addiction. Earlier in the week, addressing the UN General Assembly, he accused the betting industry of "transforming addiction into profit".
The announcement has drawn sharp criticism from his political rival. Flávio Bolsonaro, who is contesting the presidency and is the son of former president Jair Bolsonaro, called the crackdown "populist, hypocritical and politically motivated" during a campaign rally in Rio de Janeiro on Friday, according to Reuters. Recent opinion polls place the two candidates almost neck-and-neck.
Sports bodies have also raised concerns. Grêmio, one of Brazil's so-called "big twelve" football clubs, noted ahead of the announcement that betting firms had become "one of the main sources of revenue for sports" since they were made legal. It warned that a change in the law "will not only be an open door for illegal betting, but a fatal blow to Brazilian football, leading many clubs to insolvency".
According to broadcaster Globo, Brazil's main clubs received 1.1 billion reais (about $212 million) from sports betting firms, while the industry collected 62.5 billion reais over the same period.
The Brazilian Institute for Responsible Gaming (IBJR), a trade body representing around 75 per cent of the domestic betting sector, said a total ban on fixed-odds betting jeopardised the industry as a whole and potentially 58 to 73 billion reais in revenue. "The ban also doesn't eliminate existing demand," it said in a statement, adding that anyone turning to illicit betting would no longer have "access to protection mechanisms provided in the regulated environment". The body urged the federal government to strengthen betting regulations rather than outlaw the activity entirely.
Public opinion on the question appears divided but leans towards restrictions. A survey by Atlas and Bloomberg published this week found that 59.9 per cent of Brazilian adults support banning internet betting. The debate now moves to Congress, where the provisional order and the accompanying bill will be examined in the coming weeks, even as the election campaign enters its final phase.
