In recent months, Brazilian President Lula has intensified his criticism of online betting companies. Through various speeches and interviews, he has echoed concerns from conservative factions in society that position gambling as a growing social issue. Lula alleges, albeit with unverified claims, that gambling is linked to financial indebtedness and deteriorating working conditions.
The president has vehemently described betting companies as a “scourge of lies,” particularly condemning their effects on youth and low-income workers. He has firmly stated that, if he had his way, these companies would be shut down entirely. During a speech at the Ministry of Labour, Lula referred to sports betting as a financial trap that ensnares workers.
In discussions on two podcasts, he reiterated his stance against the industry, stating emphatically, “If no one can show me a social justification for these betting platforms to continue, we have to put an end to them.”
### Clashes in Congress
Lula expressed awareness of a “betting lobby” within Congress, indicating the industry's political influence aimed at protecting its interests. He acknowledges that his proposal to abolish online gambling will face significant challenges. “I know there’s a gambling lobby in Congress,” he noted. “But it is a fight we will have to take on, because society cannot be destabilised by something we can control.”
Unspoken but evident in his consideration, Lula is also mindful of the financial implications of his position. The gambling sector had contributed nearly BRL7.3 billion to government coffers in the first half of 2026. In 2025, Brazil’s revenue from gambling was close to BRL10 billion, not including regulatory fees. Any move to end the gambling sector would eliminate this revenue stream, potentially straining the national budget further.
The government’s concerns have been highlighted by recent findings from the Ministry of Finance. According to Finance Minister Dario Durigan, over five million Brazilians are currently barred from participating in gambling.
### Political-Electoral Implications
Lula’s discourse against online betting is also tied to a broader political strategy aimed at promoting formal employment while challenging economic models that he believes exploit the financial vulnerabilities of the populace.
This rhetoric has become integral to his campaign narrative, associating the fight against online gambling with efforts for social protection and addressing debt issues. He mentioned that the government is actively consulting with the ministries of finance, planning, and justice. “We are working with the ministries so that we can take action,” Lula stated, underlining his commitment to assess measures that could alleviate the social impacts of betting.
### Illegal Market Concerns
However, Lula’s approach to restricting sports betting faces a significant challenge; banning the activity may not eliminate gambling. Instead, it could push bettors into the illegal market, which currently represents between 38% and 44% of total gambling based on studies by LCA and Instituto Locomotiva.
Bernardo Freire, legal counsel for the National Association of Games and Lotteries (ANJL), warned that prohibiting betting websites would merely divert bettors to illegal platforms. He characterized the idea of banning licensed companies as being “complicit with crime.” At an ANJL event with Grupo Globo, he expressed concern that banning licensed platforms would only empower the illegal sector. “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,” he emphasized.
