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Brazil: Lula takes on betting industry days before knife-edge election

Presidential order takes effect immediately

Brazil’s President Luiz Inacio Lula da Silva banned online sports betting sites on Friday, nine days ahead of a tightly contested presidential election in which he is seeking a fourth term at age 80. He signed decrees that take effect immediately but must be approved by Congress within 120 days to become permanent law.

According to Economy Minister Dario Durigan, “from October 6, there will be no more sites, no more apps, and no more legal sponsorship of sports betting in the country.” New deposits into betting accounts are already banned, and existing users have until October 5 to withdraw their funds.

“Either we remove the tumor, or the tumor kills us”

These platforms, known in Brazil as “bets”, have exploded in popularity in recent years. The government blames them for a public health problem linked to addiction, and for record household debt: eight in ten Brazilian families face some form of debt, according to the National Confederation of Commerce, and betting absorbed 62.5 billion reais (more than €10 billion) of household income in 2025.

Lula has compared the phenomenon to “crack” and “cancer.” “Either we remove the tumor, or the tumor kills us,” he said at a ceremony in Sao Paulo. A poll by Atlas/Bloomberg published Wednesday found that three-quarters of Brazilians support a total ban on online betting.

Neymar, Vinicius and football clubs on the front line

In football-mad Brazil, 13 of the 20 top-division clubs carry a betting site as their main shirt sponsor. Neymar and Vinicius Junior are the best-known faces of betting advertising in the country. Several clubs, including reigning champions Flamengo, have criticized the ban, saying betting sponsorship is essential to their finances.

Legalized in Brazil in 2018 under President Michel Temer, “bets” were regulated by Lula’s government at the end of 2023, which imposed taxes and rules for platforms to operate legally. Beyond sports betting, they also offer casino games such as roulette and slot machines like Fortune Tiger, known locally as “Tigrinho.”

Rival calls it an “electoral” move

Lula faces Senator Flavio Bolsonaro, 45, son of far-right former president Jair Bolsonaro, in the October 4 first round. Polls show them neck and neck. “Lula is desperate. He did nothing for four years, and on the eve of the election he wants to pretend he wasn’t the one who approved and regulated online casinos,” Bolsonaro said Friday. He opposes banning sports betting specifically, distinguishing it from online casinos, which he says are subject to “some form of control.”

Several industry associations argue the ban will not “protect society,” warning that bettors are likely to migrate to unregulated, illegal sites instead.

Author

  • Louis Boulben

    Ex-NCAA D1 Athlete with a background in B2B/D2C technology, enterprise business development, finance, and management. Currently leading growth and strategy at MathODDS, expanding into broader European and US markets.


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