Brazilian president Luiz Inácio Lula da Silva has intensified his rhetoric against the online betting industry, calling operators a 'scourge of lies' and warning he is prepared to shut down the sector if it cannot justify its social purpose.
In speeches at the Ministry of Labour and podcast interviews, Lula linked betting to rising household debt and deteriorating working conditions, though no supporting data was cited. He described wagering as a financial trap for young people and low-wage workers. The president acknowledged a 'betting lobby' in Congress and conceded that passing a legislative ban would be difficult. 'Society cannot be destabilised by something we are able to control,' he said.
Revenue at stake
A ban would cost the treasury a significant income stream. Betting brought in nearly BRL 7.3 billion in the first half of 2026 and around BRL 10 billion for the whole of 2025, excluding licensing and regulatory fees. Finance minister Dario Durigan said more than 5 million Brazilians have been placed on exclusion lists and barred from placing bets.
Industry figures warn a ban would not kill demand but simply push players to the black market. Research by LCA and Instituto Locomotiva estimates the illegal segment already accounts for 38 to 44 per cent of the market. Bernardo Freire, a lawyer at the National Association of Games and Lotteries (ANJL), called a hypothetical ban on licensed operators 'complicity in crime': 60 per cent of users on legal platforms would simply move to the grey zone.
Lula has tasked the finance, planning and justice ministries with drafting measures to reduce betting's impact on society. His campaign against the industry forms part of a wider electoral agenda focused on protecting formal employment and tackling household debt.
