President Lula has intensified his critique of online betting companies in Brazil in recent months. Through various speeches and interviews, he has echoed concerns raised by a conservative faction in society that gambling poses a significant social issue. By referencing unverified claims, Lula has associated gambling with rising debt levels and deteriorating working conditions.
He has harshly characterized these betting companies as a "scourge of lies," particularly emphasizing the negative impact they have on young people and low-income workers. Lula expressed that if it were within his power, he would eliminate these businesses altogether. During a recent address at the Ministry of Labour, he described sports betting as a financial trap that ensnares workers.
In discussions on two podcasts, Lula reiterated his condemnation of the gambling industry, 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 is cognizant of the “betting lobby” operating within Congress, insinuating that the sector wields political influence to uphold its interests. This, he believes, complicates efforts to advance a proposal for the industry's abolition. "I know there’s a gambling lobby in Congress,” he remarked. “But it is a fight we will have to take on because society cannot be destabilised by something we can control."
Despite his critical stance, Lula is faced with a significant dilemma regarding the financial contribution of the gambling sector to government revenue. In the first half of 2026 alone, the government collected nearly BRL 7.3 billion from gambling, following a total revenue of almost BRL 10 billion in 2025, not counting concession and regulatory fees. The cessation of this industry could further strain the national budget.
The government's apprehensions are underscored by recent findings from the Ministry of Finance, revealing that over five million Brazilians have been barred from gambling activities. Lula’s approach also encapsulates a political-electoral strategy, as he aims to bolster formal employment and challenges economic frameworks that he perceives as preying on the financial vulnerabilities of the populace.
The anti-gambling rhetoric has become integral to Lula’s political narrative, intertwining the fight against the betting industry with broader themes of social protection and debt management. He indicated that the government is collaborating with various ministries, including finance, planning, and justice, to formulate strategies that address the societal effects of gambling. "We are working with the ministries so that we can take action," he stated.
Nevertheless, Lula’s opposition to sports betting confronts a complex issue. A ban on the activity would not eliminate sports betting or online gambling but rather push them into the illegal market, which is estimated to comprise between 38% and 44% of the total gambling sector, according to a study by LCA and Instituto Locomotiva.
Bernardo Freire, legal counsel for the National Association of Games and Lotteries (ANJL), argued that prohibiting licensed betting websites would lead to bettors migrating to illegal platforms. He asserted that closing down licensed operations would be tantamount to "complicity with crime.” At an ANJL event hosted by Grupo Globo, he noted that if 40% of the population is already engaged in illegal gambling, a ban would only transfer the remaining 60% from licensed platforms to the illegal market.
