Brazilian President Luiz Inácio Lula da Silva is expected to sign two provisional measures this Friday, September 25th, according to sources familiar with the matter. One measure will ban online betting, while the other is designed to renegotiate personal debts. These actions come less than two weeks before a closely contested presidential election, addressing growing concerns about household indebtedness.
Lula has consistently threatened to prohibit online betting, often referred to as "bets," arguing that gambling exacerbates the financial difficulties faced by families. He stated, "I discovered that betting is a disease." The government has already barred beneficiaries of major social assistance programs from placing bets and imposed restrictions on individuals enrolled in debt renegotiation programs. Officials were initially concerned that announcing such measures before the election could violate electoral law, but they plan to present the debt relief as a new version of the existing Desenrola program.
The new debt program is anticipated to focus on older debts, potentially dating back four or five years, including those accumulated during the COVID-19 pandemic. Under a proposed "auction" model, the National Treasury would purchase these old consumer debts at a significant discount, possibly around 95%, reflecting their low likelihood of recovery. Finance Minister Dario Durigan mentioned a policy to clear people's names, especially for older debts that banks and service companies have largely given up on collecting.
The ban on online betting will apply to both online casino games, like "jogo do tigrinho," and fixed-odds bets on real events such as football matches. While economic officials initially favored banning only online casino games and restricting advertising, Lula ultimately decided on a total ban, preparing a provisional presidential decree for legal backing. This decision is controversial, with betting companies that have joined the regulatory framework threatening legal challenges, and critics arguing it could drive consumers to illegal platforms. The government is also considering a low-interest credit line for soccer clubs, which may lose sponsorship revenue due to the ban.
A Datafolha poll released on Thursday, September 24th, showed Lula and his right-wing rival, Flávio Bolsonaro, in a technical tie for the election, with Lula at 47% and Bolsonaro at 45% in a hypothetical second round, within the margin of error. The measures are seen as an attempt to shift the campaign narrative, which has been dominated by scandals, and improve the president's popularity ahead of the vote.
