President Lula has notably intensified his critique of online betting firms in Brazil over the past few months. In various speeches and interviews, he has echoed the concerns of conservative factions, labeling gambling as a social issue. Lula has claimed, although based on unverified sources, that gambling is linked to increased debt levels and deteriorating work conditions.
He has referred to these betting enterprises as a "scourge of lies," particularly emphasizing their negative influence on young people and those from low-income backgrounds. Lula expressed that he would advocate for a ban on these companies if he had the authority. During a talk at the Ministry of Labour, he described sports betting as a financial trap for workers.
In two recent podcast interviews, Lula reiterated his position against the gambling sector, declaring, "If no one can show me a social justification for these betting platforms to continue, we have to put an end to them."
During his commentary, Lula also acknowledged the presence of a "betting lobby" in Congress, implying that the industry has significant political sway to protect its interests. He indicated that eliminating this sector would be a challenging endeavor due to this political dynamic. "I know there’s a gambling lobby in Congress," he mentioned. "But it is a fight we will have to take on, because society cannot be destabilised by something we can control."
Another concern, although not openly stated, is the financial aspect. The gambling sector contributed around BRL7.3 billion to government revenue in the first half of 2026, with nearly BRL10 billion collected in 2025, excluding fees for concessions and regulations. Ceasing operations could lead to a significant budget shortfall.
The government's worry is also reflected in recent statistics from the Ministry of Finance, which revealed that over five million Brazilians have already been prohibited from participating in betting.
Beyond the regulatory and legal ramifications, there is an electoral strategy at play for Lula. The topic of online gambling has been leveraged to bolster his push for formal employment and to critique economic systems that, in his opinions, take advantage of financially vulnerable populations.
The president has integrated the anti-betting rhetoric into his broader campaign, linking it to social protection and debt alleviation efforts. He reported that the government is collaborating with the ministries of Finance, Planning, and Justice to assess potential actions to address the societal impacts of betting. “We are working with the ministries so that we can take action,” Lula stated.
However, Lula's opposition to sports betting confronts a complex reality. Simply instituting a ban may not eliminate sports betting; instead, it could push the activity underground. Current studies by LCA and Instituto Locomotiva suggest that the illegal market comprises between 38% and 44% of the total gambling landscape.
Bernardo Freire, legal counsel for the National Association of Games and Lotteries (ANJL), pointed out that prohibiting legal betting sites could channel bettors toward illicit platforms. He argued that outlawing licensed businesses would essentially collude with criminal activity. At an ANJL event hosted with Grupo Globo, he noted, "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."
