Brazilian President Luiz Inácio Lula da Silva announced on Friday, September 25, a ban on online betting operations, often referred to as "bets" or online casinos, in Latin America's largest economy. This decision comes as Lula faces a tight re-election race against right-wing Senator Flavio Bolsonaro and is seen as a strategic move to address high levels of family debt and appeal to undecided voters, particularly women and evangelicals.
The ban, implemented through a Provisional Measure, prohibits new deposits into betting accounts immediately. Users will have until 11:59 PM on October 5 to withdraw existing funds, after which sites will be blocked. Beyond this immediate ban, Lula's administration plans to introduce legislation to criminalize betting activities and their operators. The Provisional Measure requires Congressional approval within 120 days to remain in force, while the bill will take effect only after parliamentary review.
The gambling industry has reacted strongly to the ban, with representatives calling it the "destruction of the sector." They argue that it will push the market underground, as an estimated 38% to 44% of the Brazilian betting market already operates illegally. Industry executives suggested that the government should focus on improving regulation rather than outright prohibition. They also highlighted significant financial repercussions, including an estimated $1 billion in lost sponsorships for football clubs and a potential loss of $8 billion in tax revenue for the government, which was collected in 2025 under the previous legal framework. The government is reportedly considering a relief package for clubs, including debt renegotiation and low-interest loans.
According to an Atlas/Bloomberg survey conducted on September 23, 75% of Brazilians support the ban on online betting, with only 17% opposing it. While sports betting itself might not be directly targeted, industry sources note that virtually all licensed sports betting operators also run online casinos, with casino games accounting for 50% to 70% of their profits. The ban is expected to result in the loss of at least 15,000 direct and indirect jobs and creates legal uncertainty, potentially deterring international iGaming conglomerates that have invested heavily in the Brazilian market, such as Flutter Entertainment's $3.8 billion acquisition of 56% of NSX.
In addition to the betting ban, the Minister of Finance announced a new program to renegotiate individuals' debts, particularly older ones, where the government will buy these debts at a discount. These measures, announced nine days before the first round of elections, come as Lula seeks to address an alarming statistic: at least 82% of Brazilian families have some form of outstanding or overdue debt, a record high. The government had previously launched a debt renegotiation program in May, but Lula had been pressing his aides for further solutions to the betting problem.
