Brazilian President Luiz Inácio Lula da Silva has escalated his rhetoric against online betting, calling it a 'scourge of lies' and a social threat to young people and low-income workers. Lula said he would prefer to shut down the industry entirely but acknowledged resistance from Congress, where a 'gambling lobby group' operates.
The government is discussing measures with the ministries of finance, planning and justice, assessing ways to mitigate the social impact of betting. Lula links the sector to rising household debt and deteriorating working conditions. 'If nobody can show me the social justification for these platforms, we should shut them down,' he said in an interview.
A ban would hit the budget. In the first half of 2026, betting brought the treasury nearly BRL 7.3 billion ($1.4 billion); for all of 2025 it was around BRL 10 billion, not counting concession and regulatory fees. Removing this revenue stream would put pressure on the federal budget.
A ban may not solve the problem, only redirect players to the illegal market. According to estimates by LCA and Instituto Locomotiva, unlicensed operators already control 38–44% of the sports betting and online gambling market. Bernardo Freire, legal counsel for industry association ANJL, warned: 'If 40% of the population is already in this market, a ban will push the other 60% from licensed platforms to illegal ones.' He called a potential ban 'complicity in crime' that would strengthen the shadow segment.
Lula ties his betting stance to his agenda on protecting formal employment and fighting household debt. The ban debate continues.
