Lula Announces Ban on Online Gambling in Brazil Amid Election Campaign

The Brazilian government is targeting the economic and social impact of so-called “bets” as the president seeks to strengthen his position ahead of the election. The measure comes just days before the first round of the election, amid growing concerns over household debt and problems associated with gambling.

Government Targets the Impact of Gambling

Lula signed the decree on Friday, establishing a ban on online gambling. During the presentation of the measure, the president compared the expansion of betting to a disease that, in his view, requires immediate intervention.

The president argued that sports betting platforms have become a nationwide problem because of their impact on household finances. The government has also raised concerns about gambling addiction and rising levels of debt.

In recent weeks, Lula had intensified his criticism of bets, describing them as a way of bringing a casino directly onto citizens’ mobile phones.

From Legalization to a Ban

Betting was legalized in Brazil in 2018, during the government of Michel Temer. The sector subsequently expanded significantly during the pandemic, when numerous companies began operating in the Brazilian market.

The Lula administration argues that during that period there were insufficient controls to prevent problems such as access by minors and money laundering. The current government later moved to regulate the market and introduce taxes on betting companies.

The decision to once again prohibit online betting therefore represents a significant change from the regulatory policy implemented by Lula’s own administration.

A Measure Introduced During the Election Campaign

The announcement comes just nine days before the first round of the presidential election, scheduled for October 4. Lula is campaigning in a contest marked by his dispute with Flávio Bolsonaro, son of former president Jair Bolsonaro.

The president’s team believes the ban could attract support from sectors concerned about household debt and the social consequences of gambling. These include low-income voters and religious groups that have been resistant to the Workers’ Party (PT).

The measure comes alongside other initiatives announced in the weeks leading up to the election, including an increase in the Bolsa Família program and tax changes aimed at certain middle- and lower-income groups.

Lula and Bolsonaro Clash Over Responsibility

The ban has also triggered a political dispute over responsibility for the expansion of gambling in Brazil.

Lula’s allies point out that betting was legalized under Temer and argue that Jair Bolsonaro’s administration subsequently failed to establish a regulatory framework capable of adequately controlling the sector’s growth.

Flávio Bolsonaro, meanwhile, criticized the decision and accused Lula of adopting a “populist, hypocritical and electoral” measure. He also referred to the president as the “father of Tigrinho,” linking him to one of the most popular games in the Brazilian market.

New Program to Address Household Debt

Alongside the online gambling ban, Lula presented a program aimed at reducing household debt in Brazil.

The initiative would allow the government to purchase packages of household debt from banks and subsequently negotiate reductions of up to 90%.

The administration argues that betting has contributed to the deterioration of the finances of many households. According to figures cited during the announcement, around 80% of Brazilian families have some form of debt.

Impact on Football and Operators

The ban will also affect Brazilian sports, particularly football, because betting companies have become major sponsors of clubs and competitions.

Lula called on sports organizations to remain calm and argued that Brazilian football can develop without depending on betting companies. “Brazil won five World Cups without bets,” the president said.

The measure now opens a new chapter for Brazil’s betting market, following several years of expansion and regulation, while raising questions about the future of operators, sports sponsorships and tax revenues generated by the sector.