Recently, President Lula has intensified his criticism of online betting companies operating in Brazil. In various speeches and interviews, he has echoed concerns from more conservative factions regarding gambling as a pressing social issue, alleging links between gambling, rising debt, and deteriorating labor conditions.
Lula has labeled these betting enterprises a "scourge of lies," particularly condemning their detrimental effects on youth and low-income workers. He expressed a personal desire to eliminate them, characterizing sports betting as a financial pitfall for the workforce during a speech at the Ministry of Labour.
In discussions with two podcast hosts, Lula reiterated his opposition to 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."
In Congress, Lula acknowledged the existence of a "betting lobby" that allegedly influences lawmakers to protect the industry's interests. He believes that the proposal to end the sector will face hurdles due to this political backing. "I know there’s a gambling lobby in Congress," he noted, insisting that the struggle against it is necessary to keep society stable in the face of manageable risks.
Despite his firm stance, Lula is mindful of the potential impact on government finances. The betting industry contributed approximately BRL 7.3 billion to state revenues in the first half of 2026, following nearly BRL 10 billion collected in 2025, not counting regulatory fees. Abolishing the sector could jeopardize this funding, adding pressure to the national budget.
Concerns about gambling are also reflected in recent statistics from the Ministry of Finance, which indicate that over five million Brazilians have been prohibited from participating in betting activities.
Lula’s approach to the online gambling debate includes a political and electoral strategy. He is framing the issue to strengthen his advocacy for formal employment and critiquing economic frameworks that, in his opinion, exploit financial vulnerability among the populace.
To confront the issue, the administration is coordinating with the finance, planning, and justice ministries. Reports suggest Lula aims to assess and implement strategies to mitigate the societal effects of gambling. "We are working with the ministries so that we can take action," he stated.
However, Lula's opposition to sports betting faces a significant challenge: prohibiting the activity is unlikely to eliminate it but may instead push it underground. Research from LCA and Instituto Locomotiva indicates that the illegal market currently comprises 38% to 44% of total betting activity.
Bernardo Freire, a legal advisor for the National Association of Games and Lotteries (ANJL), voiced concerns that banning licensed betting websites would only channel bettors toward illicit platforms. He argued that stopping licensed companies would effectively aid criminal enterprises, noting, "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."
