The government of Brazilian President Luiz Inácio Lula da Silva is preparing a provisional measure that could impose new restrictions on betting operators or prohibit parts of the industry. Lula said he personally favours ending sports betting in the country altogether.
"Personally, I would end betting. I think it's bad for society. But as president I must make decisions collectively, so as not to harm the country's political, economic and social stability," Lula said after a meeting with business representatives, NGOs, experts and artists. Betting companies were not present. The president noted that two thirds of the decision has already been made.
Measures under consideration range from restrictions on the unlicensed market to bans on entire segments. Online casinos and certain types of sports betting are in the crosshairs. The Ministry of Finance, which has overseen sector regulation in recent years, is resisting hard measures. The presidential administration is discussing the text of the decree, which is planned to be sent to the National Congress in the week beginning 6 September.
The provisional measure format was chosen because it takes effect immediately. The government believes an ordinary bill would face resistance in congress and would not pass before elections.
Political pressure
The decision comes against a backdrop of political pressure less than 30 days before elections. Internal polls by the Workers' Party show Lula's approval rating at a record low for the past 12 months. Three out of four Brazilians oppose betting, particularly women and young people — key groups for the president's re-election. An AtlasIntel poll in April showed 63.2% of respondents consider online gambling harmful to society, 70% believe it ruins families. 35.3% blame the Lula government itself for the expansion of gambling.
The government links the growth of gambling to rising household debt and increasing gambling addiction across the country.
