In recent months, President Lula has intensified his criticism of online betting companies operating in Brazil.
In various speeches and interviews, he has echoed claims from conservative factions that gambling poses significant social issues. Lula, citing unverified data, has associated gambling with rising debt levels and the deterioration of labor conditions.
The president has referred to these betting companies as a "scourge of lies," emphasizing their negative impact on youth and low-income workers. He expressed his desire to eliminate them entirely, stating during a recent address at the Ministry of Labour that sports betting represents a financial trap for workers.
In engagements with two podcasts, Lula reiterated his stance against the gambling industry, asserting, "If no one can show me a social justification for these betting platforms to continue, we have to put an end to them."
Lula acknowledged the existence of a "betting lobby" within Congress, suggesting that the industry wields political clout to protect its interests. He indicated that this complicates efforts to push through a proposal to abolish the industry, saying, "I know there’s a gambling lobby in Congress. But it is a fight we will have to take on, because society cannot be destabilised by something we can control."
Despite not openly expressing it, Lula faces another serious concern: the government has benefited from gambling revenues, with nearly BRL7.3 billion collected in the first half of 2026 and almost BRL10 billion in 2025, not counting concession and regulatory fees. The cessation of such activities would mean a significant loss of funds, compounding budgetary pressures.
According to recent information from the Ministry of Finance, over five million Brazilians are already prohibited from participating in betting.
Lula's anti-betting rhetoric also serves a broader political-electoral strategy, allowing him to advocate for formal employment while challenging economic structures he believes exploit the financially vulnerable population.
The discourse against betting fits within his campaign narrative, connecting the effort to combat the industry with broader social protection and debt alleviation goals.
The government is actively working on this issue, consulting with the ministries of finance, planning, and justice to formulate strategies to address the societal impacts of betting. "We are working with the ministries so that we can take action," he confirmed.
However, Lula's opposition to sports betting confronts a critical dilemma: prohibiting the practice would not eradicate gambling but would likely push it into the illegal market, estimated to constitute between 38% and 44% of total gambling activity, based on a study by LCA and Instituto Locomotiva.
Bernardo Freire, a legal counsel for the National Association of Games and Lotteries (ANJL), argued that banning betting websites would only push bettors towards illegal alternatives. He described the prohibition of licensed companies as "complicity with crime."
During an ANJL event hosted by Grupo Globo, Freire elaborated on this point, stating that the closure of legitimate betting sites would bolster the illegal market. "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 warned.
