President Lula has intensified his criticism of online betting companies in Brazil over recent months. In various speeches and interviews, he has echoed claims from a conservative faction of society, asserting that gambling has emerged as a social issue. Pointing to unverified statistics, Lula has associated gambling with rising debt levels and a decline in labor conditions.
Lula has harshly labeled these betting companies as a "scourge of lies," particularly highlighting their detrimental effects on youth and low-income workers. He expressed that if it were solely his decision, he would eliminate these establishments. During a speech at the Ministry of Labour, he referred to sports betting as a financial trap that ensnares workers.
In discussions with two podcast hosts, Lula reiterated his stance against the gambling industry, stating, "If no one can show me a social justification for these betting platforms to continue, we have to put an end to them."
Lula also acknowledged the presence of a “betting lobby” within Congress, implying that the industry wields significant political power to protect its interests. He recognized that the push to abolish the betting industry faces substantial hurdles due to this influence. "I know there’s a gambling lobby in Congress," he remarked. "But it is a fight we will have to take on, because society cannot be destabilised by something we can control."
In a less overt concern, Lula noted that government revenues have significantly benefited from gambling, bringing in nearly BRL 7.3 billion in the first half of 2026 alone. Brazil collected close to BRL 10 billion from gambling activities in 2025, excluding concession and regulatory fees. Eliminating this revenue source could strain the nation's budget further.
Recent data from the Ministry of Finance emphasizes the government's worries, with Finance Minister Dario Durigan indicating that over five million Brazilians are already prohibited from betting.
Beyond the legal implications, Lula’s political strategy also considers the electoral impact. He has leveraged the online betting issue to bolster his advocacy for formal employment and has criticized economic models he sees as exploiting the financial vulnerabilities of the population.
His discourse against betting has woven itself into his broader campaign narrative, linking the opposition to gambling with social protection and debt reduction efforts. Lula stated the government is consulting with the ministries of finance, planning, and justice on this issue, aiming to explore strategies to lessen gambling's societal impacts. "We are working with the ministries so that we can take action," he commented.
However, Lula’s position against sports betting faces a substantial challenge. A prohibition on the activity would likely not eliminate sports betting and online gambling; instead, it would merely push these activities into the illegal sector, which a study by LCA and Instituto Locomotiva estimates accounts for 38% to 44% of total gambling in Brazil.
Bernardo Freire, legal counsel for the National Association of Games and Lotteries (ANJL), cautioned that enforcing a ban on betting websites would merely redirect bettors to illegal platforms. He argued that outlawing licensed companies would make the government complicit in criminal activities. At an ANJL event with Grupo Globo, he stated, "If 40% of the population is already in this market today, the ban will drive the 60% who bet on licensed platforms to the illegal ones."
