Lula weighs tougher betting rules ahead of elections

Government considers tougher betting rules ahead of elections

Lula said on Tuesday (1) that he intends to take a “drastic decision” regarding betting operators. The possibility of a provisional measure (MP) is part of a broader government strategy to implement measures with a direct impact on families’ daily lives during this election year.

According to the government’s internal assessment, the oversight currently applied to the sports betting and online gaming market would not be sufficient to address the problems associated with the sector. This assessment has become part of discussions on how to tighten the rules and expand control mechanisms over betting companies.

The government’s political team is also considering the measure’s potential impact in the context of the elections. Surveys conducted by the Secretariat of Social Communication indicate that a majority of the population supports stricter rules for betting companies. Support would be even stronger among women and religious groups, particularly Evangelicals.

Provisional measure could accelerate changes ahead of elections

Choosing an MP would allow the changes to take immediate effect once published. The government believes this instrument would be the most appropriate way to tighten betting regulations and move quickly with potential changes to market rules ahead of the elections.

The initiative would also be part of a broader package of measures with strong popular appeal planned for this year, including the family debt renegotiation package, known as Novo Desenrola, and the end of the 20% tax on international purchases of up to US$50, known as the “blusinhas tax.”

Household debt has been a recurring issue raised by the opposition, particularly by Senator Flávio Bolsonaro (PL-RJ). In this context, the government seeks to associate its administration with measures that have a direct impact on household budgets and the daily lives of Brazilians in the period leading up to the elections.

Electoral calendar limits MP proceedings

Despite the possibility of the measure being published before the first round of the elections, the electoral calendar could significantly reduce the opportunities for Congress to consider the proposal.

A provisional measure has an initial validity period of 60 days and can be extended once for an equal period, reaching a maximum of 120 days. The period begins on the date of publication and continues to run during periods without deliberative sessions.

After 45 days without a vote, the MP begins to block the legislative agenda of the chamber where it is being considered.

Voting expected to be limited until first round

Congress’ concentrated legislative session ended on September 3. In addition, Senate President Davi Alcolumbre (União-AP) is not expected to call deliberative sessions between September 4 and October 4, the date of the first round of the elections.

Although Congress may hold some hearings during this period, the absence of deliberative sessions makes it more difficult to vote on provisional measures.

Voting is expected to resume from October 5. Therefore, if an MP to tighten betting rules is published before the elections, it will remain in force during the electoral period but will have fewer opportunities to be reviewed and voted on by lawmakers.

Betting gains ground in political debate ahead of elections

The discussion over tightening betting rules comes at a time when Brazil’s regulated betting and online gaming market occupies an increasingly prominent position in the country’s economic, regulatory and political debate.

The government believes stricter oversight could address concerns about the impact of betting on households while also responding to a demand identified in opinion polls and gaining relevance within the political landscape ahead of the elections.

The final content of the potential provisional measure, however, has not yet been defined by the Planalto Palace. The proposal will have to establish which aspects of betting regulation could be changed and the scope of the new oversight measures.