In a recent livestream, Brazilian President Luiz Inácio Lula da Silva expressed a strong desire to shut down online betting companies. This statement was made after he met with eight individuals who described the adverse effects of online gambling. To emphasize his concerns and appeal to conservative voters, Lula highlighted the case of a gambler who made 1,400 instant Pix transfers to a betting site. He criticized the Central Bank for its inability to identify such a significant number of transactions directed at one company.
Contrary to Lula's claims, the Central Bank is not responsible for monitoring these transactions; this duty falls to the Secretariat of Prizes and Bets. Betting companies are required to provide daily reports detailing bettors' financial activities, and Brazil's betting management system includes a feature designed to flag repeated transfers.
Lula lamented, "Today I met a young man who made 1,400 Pix transfers in three months, and the Central Bank didn’t detect that this was an excessive number of transfers to the same company? Are we remaining passive while society drowns in debt? Are we remaining passive while society is driven to madness – because this is an illness? People lose their minds; they contemplate suicide or abandoning their homes. So, we are going to take serious action."
During the livestream, he recounted a heartbreaking conversation with a mother whose 26-year-old son had taken his own life due to online betting. Lula also mentioned the case of a bettor who accrued a debt of BRL2 million ($388,410) in just three months from gambling.
Despite his statements, Lula does not acknowledge the significant revenue the government derives from the betting sector. The first seven months of 2026 alone have seen BRL8.747 billion from sports betting contribute to public funds, with projections suggesting it could reach BRL16 billion by year’s end. In 2025, nearly BRL9 billion was collected from sportsbooks.
If the betting industry were to be shut down, a pressing concern arises regarding the source of these funds. Many critics point out that this would likely push players to illegal markets, where betting would continue without oversight, tax revenue, or protections for the players. It will be a challenge for the government to effectively manage the illegal sector while maintaining tax revenue and job creation from the regulated gambling market. By focusing on the criticism of betting companies, the government might be overlooking the underlying causes of rising household debt.
