In recent months, President Luiz Inácio Lula da Silva has intensified his criticism of online betting companies operating in Brazil. Through various speeches and interviews, he has echoed sentiments from a conservative faction of society, pointing to gambling as a growing social issue. Lula has linked the industry to rising debt levels and deteriorating labor conditions, although he has cited unverified data to support these claims.
The president has harshly referred to betting companies as a "scourge of lies," highlighting their detrimental effects on youth and low-income workers. In a speech delivered at the Ministry of Labour, he characterized sports betting as a trap that ensnares workers financially. Furthermore, in interviews across two podcasts, he escalated his criticisms, 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, suggesting that the industry has significant political clout aimed at protecting its interests. Acknowledging this challenge, Lula noted, "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 his strong opposition to the gambling industry, Lula must consider the financial implications of such a ban. Government revenues from gambling reached approximately BRL7.3 billion in the first half of 2026, with total collections nearing BRL10 billion in 2025, excluding concession and regulatory fees. Eliminating this activity could lead to budgetary constraints for the government.
Additionally, recent findings from the Ministry of Finance reveal that over five million Brazilians are currently barred from participating in betting activities. This data serves as a backdrop to Lula's growing focus on the issue as he seeks to advocate for formal employment and to critique economic models he believes exploit financial vulnerabilities among the populace.
This narrative against betting aligns with his broader agenda for social protection and addressing indebtedness. Lula mentioned that his government is collaborating with various ministries, including finance, planning, and justice, to formulate strategies that would alleviate the adverse effects of gambling on society. “We are working with the ministries so that we can take action,” he stated.
However, the president's position on sports betting touches on a complex issue. Enforcing a ban on these activities may not eradicate sports betting or online gambling but rather push them into the illegal market, which currently represents between 38% and 44% of the betting landscape, according to research by LCA and Instituto Locomotiva.
Bernardo Freire, legal counsel for the National Association of Games and Lotteries (ANJL), warned that shutting down regulated betting websites could inadvertently drive bettors to illegal platforms, suggesting that such a ban would be tantamount to "complicity with crime." At an ANJL event, he explained that restricting access to licensed websites would likely force many bettors into 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 argued.
