President Lula has intensified his criticism of online betting firms in Brazil over recent months. He has echoed concerns from more conservative factions, asserting that gambling is emerging as a significant social issue. Lula has drawn on unverified claims to connect gambling with rising debt levels and deteriorating labor conditions.
Referring to these betting enterprises as a “scourge of lies,” Lula has specifically targeted their impact on youth and low-income workers. He expressed a desire to put an end to these companies, stating in a speech at the Ministry of Labour that sports betting represents a financial trap for workers.
In a series of podcast interviews, Lula reiterated his opposition to the gambling sector. "If no one can show me a social justification for these betting platforms to continue, we have to put an end to them," he insisted.
In Congress, Lula acknowledged the presence of a “betting lobby” that purportedly seeks to influence legislation to protect its interests. This reality suggests that his proposals to abolish the gambling industry may face significant challenges. “I know there’s a gambling lobby in Congress,” he stated. “But it is a fight we will have to take on, because society cannot be destabilised by something we can control.”
There is an underlying concern for the government, too. Gambling contributed almost BRL 7.3 billion to public finances during the first half of 2026, while in 2025, the total revenue from gambling reached nearly BRL 10 billion, exclusive of regulatory and concession fees. Eliminating this activity could culminate in a loss of vital revenue, potentially straining the national budget further.
Data from the Ministry of Finance reveals that over five million Brazilians are currently banned from betting. This regulatory battle also intersects with political aspirations, as Lula employs the issue of online gambling to bolster his promotion of formal employment while criticizing models that exploit financial vulnerabilities.
The rhetoric against the betting industry has become part of Lula’s campaign, associating this fight with broader social protection efforts and debt alleviation initiatives. The president indicated that his administration is collaborating with the finance, planning, and justice ministries to identify measures to address the societal impacts of betting. “We are working with the ministries so that we can take action,” he noted.
However, the prospect of banning sports betting raises a significant concern: such a prohibition might not eliminate the practice but could instead push it into the illegal market. Research by LCA and Instituto Locomotiva estimates that this illicit sector currently constitutes between 38% and 44% of total betting activity.
Bernardo Freire, legal counsel for the National Association of Games and Lotteries (ANJL), highlighted that prohibiting betting websites would divert bettors to illegal platforms, suggesting that banning licensed firms could be seen as “complicity with crime.” At an ANJL conference with Grupo Globo, he remarked that a crackdown on legal sites would likely bolster the underground 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 asserted.
